Child poverty rates in Scotland decreased to 22% in 2023-24, down from 26% the previous year. 80,000 children are in "very deep poverty" according to the Joseph Rowntree Foundation. The Scottish Child Payment is £27.15 per week per child under 16, with over 320,000 children receiving it. Charities advocate for increasing the payment to £40 per week, potentially lifting an additional 20,000 children out of poverty.
While charities and the Institute for Public Policy Research (IPPR) support a significant increase, Finance Minister Swinney expresses concern about potential disincentives to work. He suggests that current levels are at the limit of what is feasible. This position is countered by the Child Poverty Action Group and Oxfam Scotland, who cite Scottish Government analysis showing no negative labor market impact from the payment.
The Scottish Government aims to reduce child poverty to 10% by 2030, but this target's feasibility is debated. The Scottish Government has pledged to mitigate the UK Government's two-child benefit cap from 2026. Swinney criticizes the UK Government's failure to scrap this cap. He maintains that balancing work incentives with social security is critical. While proud of progress made, he acknowledges that the balance between the two is crucial in their current financial planning.