Social Security Directorate Social Security and Reserved Benefits abcd T: 0131-244 9658 F: 0131-244 E: [email protected]

Mr Norrie Lyttle By email: norrie.lyttle@.gov.uk

Your ref: GCC 130918/NL Our ref: 2018/0044695 16 January 2019

Dear Mr Lyttle,

I am writing in response to your recent letter to the Cabinet Secretary for Social Security and Older people, regarding a motion on child poverty passed by Glasgow City Council. I have been asked to respond as the lead policy official for this work.

The is committed to tackling the deep seated inequalities in Scottish society – as the motion notes, that includes being the only part of the UK with poverty reduction targets set in law, through the Child Poverty () Act. In March 2018, the first Tackling Child Poverty Delivery Plan was published, setting out the actions that will be taken to help meet those targets, backed by a range of investment, including a £50 million Tackling Child Poverty Fund.

In particular, those actions cover three key areas: improving work opportunities and earnings; reducing the costs of living; and, investing in social security. As the motion sets out, as part of that the Scottish Government works to ensure people are protected from the worst impacts of UK Government welfare reform which are expected to lead to reduced social security spend of around £3.7 billion in Scotland by 2020/21, and independent analysis highlights it as the main reason for increasing poverty levels.

Recognising that poverty is fundamentally about a lack of income, and as the Council’s motion sets out, one of the Tackling Child Poverty Delivery Plan’s key measures is to work towards the introduction of the new income supplement. That will be guided by two key principles: that it reaches the greatest number of children living in poverty, and that it tops up incomes sufficiently to lift those households out of poverty. While there have been calls for this to be delivered by topping up a reserved benefit, it is not the case that would be an immediate or simple option, or best to help meet our ambitious child poverty targets.

As we know from previous experience, it requires significant efforts to secure inclusion of reforms into the planned work of UK Government departments – something that is not guaranteed and could bring significant costs. Even when work has been agreed we have seen the UK Government can continue to delay that, without the agreement of the Scottish Government – for example, continued efforts to fully abolish the bedroom tax at source.

Victoria Quay, Edinburgh EH6 6QQ www.scotland.gov.uk abcdefghij abcde abc a All of this introduces constraints, complexity and costs into the process, which Scottish Ministers have no control over. It would also leave the income supplement – and the families who rely on it – exposed to future UK policy changes which we would have no say in. As such, there is a need to ensure that time is taken to fully and properly consider all potential options. That will also mean giving full and proper consideration to the advice of the independent Poverty and Inequality Commission, who advised that all possible options should be considered, including topping up , and what could be done through Social Security Scotland.

The Tackling Child Poverty Delivery Plan commits Scottish Government to work towards the introduction of the income supplement over the lifetime of the plan, to enable that detailed work to be undertaken. The Cabinet Secretary for Communities and Local Government will provide an update on this work to Parliament by Summer 2019.

Scottish Ministers have given a firm commitment that will be done in close consultation with stakeholders, including those at a local level. In the coming weeks we will be hosting a number of roundtable events with stakeholders to discuss the development of the income supplement, including one with the Local Child Poverty Coordination Group – those responsible for the coordination of local child poverty action reports.

I would like to thank you for taking the time to write in on this matter and provide a copy of the Council’s motion, and I hope this response provides some useful clarification and information on the Scottish Government’s actions in this area.

Yours sincerely,

Philip Whyte Reserved Benefits Division

Victoria Quay, Edinburgh EH6 6QQ www.scotland.gov.uk abcdefghij abcde abc a