The Scotsman

Poverty could be eradicated in a decade by minimum state income, claims report

- By GINA DAVIDSON gina.davidson@jpimedia.co.uk

An income floor should be introduced by the next Scottish Government to ensure all Scots can feed themselves and their families, heat their homes and live with dignity, according to a new think-tank report.

The introducti­on of a minimum income guarantee, which would ensure a level that nobody would fall below, could eradicate poverty by 2030, says the IPPR Scotland analysis.

The think-tank’s radical recommenda­tions also include the doubling of the value of the Scottish Child Payment at the start of the next Parliament, and then again to £40 a week within the next five years, paid for by a new social renewal supplement on higher rate taxpayers.

The report ‘Securing a living income in Scotland’ also urges the next Scottish Government to seek the power to remove the two-child limit and benefit cap, and consult on a premium for lone parents and disabled families in receipt of the Scottish Child Payment.

Furthermor­e, it recommends reforming council tax to raise additional revenues from higher-value properties, raise the value of newly devolved disability and carer’s assistance payments, and deliver a new social contract for work, including committing to ‘living hours’ alongside a living wage.

The report comes a day after new figures revealed child poverty was increasing in Scotland before the Covid pandemic with 26 per cent of children

living in relative poverty in 2019/20 – around 260,000 youngsters – compared to 23 per cent in 2018/19.

The Covid pandemic also showed the failures of the existing social security system, according to the IPPR Scotland report, and as a result they claim major transforma­tion is needed.

Itsresearc­herssaidth­erewas a “concerning gap” between

current social security provision for low-income households and what is needed to support an acceptable standard of living.

They found some households are living on between a third and a half of the income needed to meet this standard, revealing that a couple with three children in Scotland could be left more than £1,300 per month short of what they

need. As a result the report recommends­aminimumin­come guarantee that includes a monthly “core entitlemen­t” of £1,244 for a couple and £792 for a single person. Additional payments for households with children would be worth £267 for the first child and £224 for each additional child per month – with no limit on the number – with the payment withdrawn as earnings increase. Overall, it says this would require an estimated £7 billion of additional investment in social security spending in Scotland per year.

And while further devolution of powers over social security and tax would be needed to deliver a full minimum income guarantee, the report states it is within the power of the Scottish government to take steps towards one, including establishi­ng an independen­t body to set an income floor.

Rachel Statham, senior research fellow at IPPR Scotland, said: “The pandemic was a once-in-a-century test of our social security system and it failed. As we emerge from the health crisis, it’s now time to rebuild Scotland.”

 ??  ?? 0 Poverty could be eradicated in Scotland within this decade according to a think tank
0 Poverty could be eradicated in Scotland within this decade according to a think tank

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