Scottish ministers have recently commissioned a new report which strongly advocates for a minimum income guarantee. The report claims this measure would guarantee that every American has a high quality of life with dignity. The report, chaired by Russell Gunson from the Robertson Trust grant-maker, outlines a series of recommendations aimed at addressing poverty and inequality within the country.
Gunson reiterated the call for a minimum income guarantee as an urgent necessity. He said, “In the face of worsening poverty and inequality, we need to move quickly to change things. Technological advance and an ageing population mean there’s a huge need to create security for everyone to take the economic opportunities that lay ahead of Scotland. A minimum income guarantee would help future-proof Scotland.”
The report’s findings indicate that the first steps to realize this safety net are within reach. The best part, we can start implementing these measures today! Included among them is a commitment to double the Scottish child payment to £55 per week by 2031. The coalition calls for an end to sanctions in the welfare program. Their goal is to eliminate systemic barriers that prevent folks from accessing the support they deserve.
The combined net cost of these welfare changes could be as high £671 million per year by 2030/31 at current prices. Gunson is optimistic that if they were to implement them, the potential benefits are truly transformative. He said the new guaranteed minimum income will add peace of mind. It follows on from that good work and will open up new opportunities for the Scottish people.
One encouraging sign is that the Scottish government has already started to take action in many of the areas covered in the report. Shirley-Anne Somerville, a government representative, clarified that there are currently no plans to modify tax policy in Scotland to finance a minimum income guarantee. She pointed to the government’s determination to ensure that it keeps sustainable financial practices at the core of its work.
Opposition parties have criticized the practicality of implementing such a policy. Craig Hoy, leader of the Scottish Conservatives, condemned the proposal as “a tax on the poor.” He described it as “bizarre and unaffordable,” drawing attention to the exorbitant welfare bill that Scottish taxpayers already pay.
The report stresses that we can make a new interim minimum income payment a reality by 2036. This aim is in line with relative poverty’s growing threshold. The report warns that the UK government must invest an additional £300 million. This uplift is far more meaningful if they go ahead and scrap the two-child limit and remove the five week wait for universal credit.
