Scottish Child Payment rises to £40 per week under SNP ‘budget for families’

The Scottish Child Payment is to increase to £40 per week for some families under SNP budget plans.

The pre-election budget includes new council tax bands for properties worth £1m and above, as well as more cash for colleges and a private jet tax.

Ahead of the statement, delivered by finance secretary Shona Robison today, ministers indicated that there would be a focus on easing the cost of living.

Speaking in Holyrood, Robison called it “a budget for Scottish families”, with the extra Scottish Child Payment to be paid out to low-income families with babies aged under 12 months.

Free summer sport sessions, a record £22.5bn for health and social care and a further 10 per cent funding increase for colleges is also pledged.

The basic and intermediate income tax thresholds will also rise by 7.4 per cent.

Robison promised swimming lessons for children and “more operations and appointments in our health service”, saying: “Life will be a little easier for parents, with more wraparound childcare, and more young Scots will be able to find a home that they can love and can afford, helping them to build a more secure future right here in Scotland.

“This is a government that wants what is best for Scotland, and that is why we will continue to offer and continue to expand the best cost of living support package available anywhere in the UK.”

A means-tested benefit, the Scottish Child Payment is currently paid out at £27.15 per week for qualifying children. The level will be lifted to £28.20 per week for those aged over 12 months.

Campaigners have pushed for an uplift and Claire Telfer of the charity Save the Children called the “bold” change “a moment of hope for families, and for all of us”. 

She said: “Investing in the tiniest members of our society – alongside the other commitments made to tackle child poverty - is how we sow the seeds of a brighter tomorrow.  

“We want all children to have an equal chance to achieve their potential, there must be no limits to childhood. We hope to see cross-party support for this important part of the budget, which will make a real difference to the lives of parents and babies today, and to the Scotland of tomorrow.”

However, Stephen Boyd of the IPPR think tank called it “a tepid budget that didn't begin to address Scotland’s pressing challenges or point towards significant progress in delivering the first minister’s four key priorities of eradicating child poverty, tackling the climate emergency, growing the economy and ensuring high quality and sustainable public services”.

He said: “The new council tax bands are welcome but don’t begin to substitute for the radical reform to local taxation demanded by almost every stakeholder, and it won’t provide a meaningful revenue boost to those local authorities lacking housing at higher valuations.

“Yet again, short-term politically driven tax changes with minimal real impact are prioritised over the development of a serious, long-term strategy to achieve the revenues necessary to deliver on the FM’s priorities.”

This is the third and final tax and spend plan to be delivered by Shona Robison, who will stand down as an MSP in May.

Normally published in December, the budget was delayed in response to the later delivery of the autumn statement by UK Chancellor Rachel Reeves.

Ahead of the Scottish announcement, the Fraser of Allander think tank warned Robison faced a £1bn capital spending black hole.

And research published earlier this month by the Local Government Information Unit found heads of eight in 10 Scottish local authorities – all of those which took part in the survey – expect to raise council tax and cut services this year. Some said they were considering increases of 15 per cent.

The budget comes days after the Scottish Government made a new pay offer to resident doctors which averted potential strike action. The £133m offer covers two years and a ballot of BMA Scotland members will take place.

Parliamentary maths means the minority SNP administration must work with political rivals to secure the passage of the budget.

Robison said “key priorities of opposition members have been included” in the plan, including more money for neurodevelopmental assessments and care for children and young people, additional investment for changing places toilets, bus franchising resources and cash for the redevelopment of Edinburgh’s King’s Theatre.

However, one week in advance, Scottish Labour leader Anas Sarwar indicated that his party would abstain and in the chamber the party’s Paul O’Kane said Robison’s proposals aped policies already in place in Wales and England. He said: “Why has it taken this government so long? Surely, the answer could only be that they're out of energy.

“They need to get out of the way for a government who will actually do the hard work of delivering.”

Conservative Craig Hoy called the plan “smoke and mirrors”, saying it “prioritises welfare over work”, with £650m extra being spent in the social justice portfolio. He went on: “With an election just 113 days away, John Swinney thinks he can morph from Che Guevara into Adam Smith with no intervening steps.”

Robison said an airport departure tax will be brought in by April next year, with a consultation on a potential exemption for the Highlands and Islands, with the private jet tax to follow. She said: “I say to those who choose to travel by private jet in Scotland, you will pay and pay a fair share for that privilege and, in doing so, will be making Scotland a fairer nation.”

Meanwhile, a two per cent real terms increase is pledged for local government. Robison described this as “a reasonable deal” and urged local authorities to “translate the settlement into reasonable decisions on council tax”.

Scottish Chambers of Commerce welcomed news of a reduction in property rates for businesses and a 15 per cent rates relief pledge for hospitality, leisure and retail firms and extra help for island companies. Its chief executive Dr Liz Cameron said: “It offers a glimmer of hope but we need more support and more ambition to fully restore confidence and help all our struggling businesses.”