IPPR: Nearly half of families with children in Scotland struggling to make ends meet during COVID-19

A total of 300,000 households with dependent children in Scotland (49%) are ‘struggling to make ends meet’ or in ‘serious financial difficulty’ during this COVID-19 crisis, according to new analysis from IPPR Scotland.

IPPR: Nearly half of families with children in Scotland struggling to make ends meet during COVID-19

The Standard Life Foundation’s COVID-19 Financial Impact Tracker has revealed the shocking toll that COVID-19 is already having on families’ finances across Scotland.

The tracker has found that one in five (20%) of families with children in Scotland, or 100,000 households, reported experiencing serious financial difficulty in April. This compares with 12 per cent of all households across Scotland. Families in this group were also the most likely to be struggling to pay essential bills and to pay for food.

The Scottish Government has moved to provide low-income families with food or payments for school lunches and has funded additional crisis funds through the Welfare Fund. However, it has been forced to delay the implementation of the new Scottish Child Payment which would have provided £10 per week to low income families in Scotland.

IPPR Scotland is calling for the UK and Scottish governments to act. It has urged that the Scottish Government must urgently provide lump-sum payments of £250 per child to low-income families this summer – this could be paid to families in receipt of Best Start Grant (for under 5s) and through local authorities to those in receipt of the School Clothing Grant (for over 5s).

The organisation has also said that the UK government must urgently increase the child supplements paid through Universal Credit by £10 per week and provide a £5 uplift in Child Benefit for the duration of the crisis.

Russell Gunson, director of IPPR Scotland, said: “The scale of financial difficulties facing families with children in Scotland is truly shocking. Nearly half of them are in financial trouble, and one in five are facing serious financial difficulties, meaning they are likely to be struggling to pay for food or essential bills.

“The COVID-19 crisis is affecting everyone, but when it comes to the financial impact on families, it’s not hitting everyone equally.

“The UK government must now consider additional support to families through the social security system. And while the Scottish Government has moved to provide some welcome additional support to people in crisis it’s been forced to delay the Scottish Child Payment due to COVID-19.

“They must now look at what more can be done to urgently get families and children the help they need here in Scotland.”

He added: “The scale of this crisis is huge and we’re moving into a crisis which is both an economic one and a health one. The Scottish and UK governments must now do everything they can to support those that need it the most”.

  • Read all of our articles relating to COVID-19 here.
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