Blog: The Scottish Government must support families in financial distress
Today the Scottish Government will announce their budget plans for next year.
The actions John Swinney commits to in his budget statement will chart a course for navigating the worst financial crisis in our lifetimes during the year ahead.
The government has tough choices to make.
But they still have a choice.
Families with the least have been hit hardest by the cost of living crisis.
They are no longer forced to choose between heating their homes or feeding their children, as they can afford to do neither.
They do not have a choice.
Faced with the tsunami of spiralling bills, soaring food prices and skyrocketing energy costs, the poorest families in Scotland are out of options.
They are now hostage to whatever support the government can offer to help them survive this winter and beyond.
At Aberlour we see the impact every day of what it means for families who do not have enough to afford even just the basics.
Household incomes are simply inadequate, and more and more families are relying on foodbanks and charities to live day-to-day.
Aberlour’s Urgent Assistance Fund, which provides emergency funds to cover the essentials, such as food, clothing, heating and bedding, has provided a lifeline to families trapped in poverty.
Since April 2020 we have given out nearly £2.5m in cash grants to more than 6,500 families across Scotland.
One of the biggest issues for the families we work with is debt they owe to public bodies – or public debt – such as councils tax arrears, Universal Credit advance payments and even school meal debt.
Families tell us they simply can’t absorb any more costs as they fall deeper into debt trying to make ends meet.
For many, paying back public debt means they can’t afford to pay the bills or buy the things they need for their children.
Last month Aberlour published research which highlights the scale of public debt for families on the lowest incomes in Scotland.
This was backed up by further research on public debt published this week by the Robertson Trust.
Our report shows that more than half of low-income families with children in Scotland who receive Universal Credit are seeing their monthly income reduced by the DWP to cover public debt they owe.
Our evidence tells us that families who already rely on benefits to get by are seeing their incomes reduced by 10% (£80), on average, at a time when the price of everything that families need to live is on the rise.
We welcome the action the Scottish Government has already taken to help low income families this year.
The increase and full roll out of the Scottish Child Payment has made a huge difference to families across Scotland – but it is still not enough.
Our research tells us that tens of thousands of families eligible for the Scottish Child Payment are not feeling the full impact of the payment, as the majority of the boost to incomes it provides is being swallowed up by the cost of repaying public debt.
At Aberlour we campaigned for the Scottish Child Payment as a vital financial support for families in Scotland who have the least.
But what we are seeing is Scotland’s poorest families receiving help with one hand that is being taken away by the other.
We now need government to act differently in response to families with public debt, by responding with compassion and empathy, rather than adding to the anxiety of families already in crisis.
This must start with the actions the Scottish Government announces today to help and support families in financial distress.
We believe there are choices that John Swinney can make that will take the pressure off those families trapped in poverty as a result of public debt.
We want to see an immediate pause to public debt recovery by government at all levels in Scotland for at least six months, to give families breathing space.
And for families locked in unsustainable cycles of public debt that is pushing children into poverty we need to write that debt off, reset families’ finances and help them get back on an even keel.
Families can’t continue being forced to rob Peter to pay Paul.
SallyAnn Kelly OBE
CEO of Aberlour Children’s Charity
This article was written for The Scottish Sun and published on Thursday 15th December 2022. Read the article on The Scottish Sun website here.