Joseph Roundtree Foundation find freeze on benefits 'single biggest policy driver' behind expected rise in poverty

The Joseph Roundtree Foundation has released research that shows that almost half a million more people would be forced into poverty over the next three years if the proposed freeze on benefits goes ahead. 

A new briefing by JRF published yesterday highlights how the freeze makes families worse off - the majority of whom are in work. The freeze is the single biggest policy driver behind the expected rise in poverty by the end of the Parliament.

JRF is calling for the Government to target its resources better at struggling families. Rather than increase the personal tax allowance to £12,500, which would overwhelmingly benefit better off families, JRF is urging the Government to remove the benefits freeze. Only £1 in every £6 spent on raising the personal tax allowance goes to the bottom half of the income distribution.

The influential thinktank say that the hit on families is set to be just under £1bn more than the £4bn initially forecast, due to prices rising quicker than expected.

They found the plans, which were drawn up while George Osborne was Chancellor, will lead to 470,000 more people living in poverty by 2020/21.

They say that in 2019/20, when the freeze is set to end, a couple with two children receiving the soon to be rolled out Universal Credit will be £832 worse off a year than they would have been had benefits risen in line with inflation since 2010.

They say that boosting income related benefits with inflation in 2018/19, at a cost of £2.8bn, would instead result in 380,000 fewer people living in poverty in 2020/21 - nine in 10 of whom would be in families with children and 17 in 20 would be working families.

Chief Executive of the foundation, Campbell Robb said: 

“People who are just managing at best are being hit in the pocket by the freeze on benefits and tax credits. It means millions of families are finding life even harder to make ends meet - whether paying for the weekly food shop, covering energy bills or finding enough money to pay the rent.

“While the Treasury gains from this policy in the short-term, more children living in poverty has costs the Exchequer an estimated £6.4bn per year in lost tax revenue and additional benefit spending.

“The focus should be on making sure low-income family budgets keep pace with the cost of essentials, while reducing the benefit bill through increasing employment and enabling people on low pay to increase their earnings.

“No government wants to fight an election on a record of rising poverty and falling living standards. Circumstances have changed, so policy needs to change too. As prices rise, the priority should be to protect the budgets of the lowest income families. It’s time to lift the freeze.”

Source: Joseph Roundtree Foundation/ Holyrood.com

Nicola Sturgeon Announces that the Scottish government will pay 'settled status' fees for EU migrants

The first minister announced yesterday that the Scottish government will pay the settled status fee for any EU citizen working in the public sector. 

This follows Theresa May's assurance that 'settled status' will be offered to EU citizens who have been in the UK for 5 years or more. This statement came with a strongly suggested caveat that there will be a fee to pay to ensure status. 

Speaking on the BBC's Andrew Marr programme, Ms Sturgeon said EU migrants had made a big contribution and their right to remain in Scotland should be guaranteed.

She said: "It appears that the UK government is going to make EU citizens apply for what they're calling settled status and possibly charge a fee for that.

"They haven't said what that fee would be, but if it's the same as it is for residents, it will be around £65.

"We will pay that for workers in the public sector. Why? Because it helps individuals, it helps us keep vital workers in the NHS and public services and it sends a message to EU nationals that we want them to stay here because we welcome them."

Source: BBC

Mixed reactions to Scottish Government's Fair Start Scotland Scheme

Anger as Fair Start contracts have been predominantly awarded to the private sector.

The Scottish Government has given most of the £96 million pounds worth of contracts for the new Fair Start Scotland scheme to private companies. 

The scheme which will begin in April 2018  will partner with different organisations at a local level to provide opportunities for people far away from the job market into work. It aims to help 38,000 people including those with disabilities or mental health issues. 

The Employability Minister James Hepburn said:

“We are taking a different approach to the UK Government and listening to the views of unemployed people,"

"By delivering Fair Start Scotland in nine contract areas we are reflecting Scotland’s different geographies, economies and population spread – as opposed to the UK Government’s approach which simply considered Scotland as one area."

Mhariri Black MP for Paisley and Renfrewshire South welcomed the scheme saying 

“Employment support provided by the government should be seen as an opportunity to find work and not as a redundant task surrounding filling out forms as has been the norm with similar programmes we have seen from the DWP.”

“Making this service voluntary is a vital step forward as people will not be forced to take part under the threat of their money being sanctioned, which have been proven not to work, or save the tax payer any money.”

“The UK “workfare” schemes have been compared to modern day slavery for some benefit claimants and introducing an individual approach for each person looking for employment that is tailored to their skills is common sense from the Scottish Government.”

Whlist there is a mixture of public, private and third sector organisations only Forth Valley will be lead by the public sector and North East and West Scotland by the third. 

Chief executive Dr Sally Witcher of Disabled people's organisation Inclusion Scotland said “We are disappointed and somewhat surprised that the new programmes will be delivered primarily by the same large providers behind the Department of Work and Pension’s discredited Work Programme.

“Disabled people were led to expect a step change in how the new devolved employability schemes would be delivered in Scotland.'

“Instead disabled people will feel let down that the contracts have been awarded to some groups that have shown that they cannot be trusted to deliver with dignity, respect and fairness the services disabled people need.

“The onus is now on the successful bidders to show that whatever their past record they can deliver the inclusive services that disabled people have been promised. Inclusion Scotland will be monitoring their progress very closely.”

Fraser Kelly, Chief Executive of Social Enterprise Scotland said: "Social Enterprise Scotland is pleased that The Wise Group has been appointed as a preferred bidder in the Fair Start Scotland employability programme. However, we find it hard to understand how, after such a thorough consultation process, the vast majority of contracts have been awarded to big private sector corporations instead of social enterprises and charities."

John Downie, director of public affairs for the Scottish Council for Voluntary Organisations (SCVO), said:

 “The Scottish Government promised a brave new world in its vision for employability in Scotland. Its ambitions were that the third sector would be heart and centre of the new employability landscape, but instead charities and voluntary organisations have been side-lined to make way for private companies which lack the local knowledge required.

“The reality of this new employability landscape is that it won’t deliver the best outcomes for unemployed people – particularly those who experience multiple barriers to employment, who will end up receiving a second class public service.”

Hepburn also confirmed the new scheme would be voluntary so will not be associated with benefit sanctions.

Source: Hollyrood Magazine/ Renrewshire 24

New Census Reveals Big Growth of Social Enterprises in Scotland

The latest Social Enterprise in Scotland: Census 2017 report has been launched in Glasgow today (Wednesday 6 September). The new report shows clear growth in the number of social enterprises and their economic impact.
 
The research cements Scotland’s global reputation as a world-leading nation in the support and development of social enterprise:
 

• 5600 social enterprises now operating in Scotland (up from 5199 in 2015)
• 64% of Scotland’s social enterprises led by women
• £2bn GVA, the economic contribution of social enterprises to Scotland
• 34% of social enterprises located in rural Scotland
• 50% negatively affected by the economic climate over the last 12 months
• 599 social enterprises formed in the last two years
• 81,357 full-time equivalent employees in Scottish social enterprises
• 1:2.5, is the average differential between the highest and lowest paid worker

Read the full report and summary documents
 
The project was led in partnership with a range of sector support organisations and The Scottish Government.
 
Gerry Higgins, of Community Enterprise in Scotland (CEIS), speaking on behalf of the steering group said:

“Social Enterprise in Scotland: Census 2017 demonstrates a strong and growing social enterprise community in Scotland. The data in the report contain a broadly positive picture, with social enterprises making a significant economic contribution and demonstrating resilience in the face of challenges for the economy and public services. 
 
“Social enterprises play an essential role in communities across the country, particularly in the most remote parts of Scotland. The 2017 Census also shows that some parts of the sector remain fragile or in need of continuing support to fully realise their potential. 
 
“This is the second time we've measured social enterprise activity across every region of Scotland and allows us to begin comparing and contrasting the data with the 2015 Census. 
 
“As public expectations of business and the need for an inclusive economy grow, we need to continue investing in Scotland's world-class support for social enterprise. A huge thank you must go to everyone who took part in leading the research, from the national steering group to the dedicated research team who produced such a thorough and robust report.” 
 
Angela Constance MSP, Cabinet Secretary for Communities, Social Security and Equalities, The Scottish Government said:
 
“I have no doubt of the contribution that social enterprises make to our country. They are fantastic examples of what we want to achieve in a fairer Scotland - reducing inequality, lifting people out of poverty and encouraging more empowered and resilient communities. It is staggering, but perhaps unsurprising, that the sector makes a combined contribution to the Scottish economy every year of just over £2 billion. 
 
“The Scottish Government will continue to support social enterprises through our ten year strategy, investing millions of pounds into the sector. We are also keen to work with social enterprise communities at home and abroad, particularly around the Social Enterprise World Forum. I am proud of all we have achieved, working collaboratively and I look forward to doing even more in the years to come.”
 
Note that while many of the new statistics can be compared to the 2015 report, some data gathering has been improved and direct comparisons are not possible e.g. the number of jobs is now a full time equivalent figure.
 
The full report was launched on Wednesday 6 September at the CEIS Policy and Practice conference in Glasgow and is available to download from the Social Enterprise Scotland and CEIS websites.
 
For further information, to arrange an interview or to request a social enterprise feature for print please contact: duncan.thorp@socialenterprise.scot / 07501 221 581.
 
#SocEntCensus17

Scottish Government Unveils Priorities for 2017 - 2018

Scottish Government - Seizing the opportunities of the low carbon revolution, investing in future economic growth and improving the lives of all our young people will be central to the Scottish Government’s Programme for the coming year.

Outlining the Government’s priorities First Minister Nicola Sturgeon said action would be taken to phase out the need for petrol and diesel vehicles by 2032 and fast-track the development of a Scotland wide charging network. The FM also unveiled plans for a Scottish National Investment Bank to deliver long term financial support for innovative industries.

As part of the commitment to closing the poverty related attainment gap, the FM said an Education bill will be the centrepiece of the legislative programme for the year ahead, with major reforms also taking place in health and justice and a review of local democracy.

Other measures within the Programme for Government – which confirmed 16 new pieces of legislation - include:

• support for key business sectors including low carbon, screen, manufacturing and financial technology

• extending free personal care to all those under 65 who need it, known as ‘Frank’s Law’

• rolling out new social security powers as part of a package of measures to tackle inequality, child poverty, end rough sleeping, reduce drug deaths and provide free sanitary protection to students in school, college and university

• extending the presumption against short prison sentences to 12 months to break the cycle of offending and encourage the greater use of more effective community sentences

• record investment in the NHS and a pledge to lift the public sector pay cap for NHS and other public sector workers

• doubling the provision of free childcare

• Improving public health with action on air quality, increased investment in active travel and measures to restrict the marketing of fatty and sugary food and drink

• A discussion paper on the use of income tax in Scotland to support public services

The First Minister said:

“We live in a time of unprecedented global challenge and change.

“We face rapid advances in technology; a moral obligation to tackle climate change; an ageing population; the impact of continued austerity and deep seated challenges of poverty and inequality; and an apparent rise in the forces of intolerance and protectionism.

“These challenges are considerable, but in each of them we will find opportunity. It is our job to seize it. This Programme for Government is our plan to do that. Ensuring that we have a highly educated and skilled population, able to adapt to the needs of a rapidly changing economy, is vital to our future prosperity and our wellbeing.

“That is why improving education – and closing the attainment gap – is our number one priority. A good education is important for its own sake. It contributes to the health, happiness and fulfilment of all of us as individuals.

“But it is also vital to building a modern, successful, dynamic economy. To succeed, Scotland must lead change, not trail in its wake.

“We must aspire to be the inventor and the manufacturer of the digital, high tech and low carbon innovations that will shape the future, not just a consumer of them.

“To encourage others to see Scotland as the place to research, design and manufacture their innovations - for us to become a laboratory for the rest of the world in the digital and low carbon technologies we want to champion - we must also become early adopters of them. We must be bold in our ambitions.

“The programme that I have set out today, the policies and the legislation, is fresh, bold and ambitious – and because of that, aspects of it undoubtedly will be controversial.

“That is inevitable – indeed it is necessary. No one has ever built a better country by always taking the easy option. This programme is about equipping Scotland - not just for the next year - but for the next decade and beyond.”

Background

The Programme for Government http://www.gov.scot/programme2017

New legislation announced for 2017-18 is:

Budget Bill

Climate Change Bill

Crown Estate Bill

Damages Bill

Education Bill

Land and Buildings Transaction Tax Bill

Management of Offenders Bill

Minimum Age of Criminal Responsibility Bill

Organ and Tissue Donation Bill

Planning Bill

Prescription Bill

Safe Staffing Bill

Sexual Offences (pardons and disregards) Bill

Transport Bill

Vulnerable Witnesses and Pre-recorded Evidence Bill

Warm Homes Bill

Source: Scottish Government

Poverty and Inequality Commissioners Announced

01/09/2017 - Ahead of the first meeting of Scotland’s new Poverty and Inequality Commission,  Chair, Douglas Hamilton today announced the Commissioners will be:

• David Eiser
• Hugh Foy
• Caroline Kennedy
• Katie Schmuecker
• Sally Witcher

Two deputy chairs, Kaliani Lyle and Naomi Eisenstadt, have already been appointed and a  further member will be announced in the coming weeks.

The Poverty and Inequality Commission brings together members who have a broad range of expertise from lived experience, community work, policy development and academic research.

Commissioners will have an advocacy role, promoting the importance of particular issues with the Scottish Government and other stakeholders.

Welcoming the appointments Equalities Secretary Angela Constance said:

“I am delighted to see such a strong panel of representatives with a wealth of knowledge and talent. I know they will be able to draw on their wide background of experience to provide real value and influence.

“The Commission will provide independent advice to ministers and give scrutiny on where more action could be taken to reduce poverty and inequality. I look forward to receiving their advice and using it to help develop policy that will tackle poverty and inequality in particular the first child poverty delivery plan next year.”

Mr Hamilton said:

“The Commission has been given a broad remit and the appointments I have made will ensure we can address the issues that need to be considered with a great degree of expertise. Each of the Commissioners also brings a strong personal commitment to playing their part in addressing the unacceptable levels of poverty and inequality in Scotland.

“Over the past few weeks, I have also received offers of assistance from experts from a range of other organisations which I very much welcome. It is clear that there is a strong body of support for the work of the Commission and we will ensure that we take account of a wide spectrum of views when setting out our positions.”

Background:

The First Minister announced the creation of the Poverty and Inequality Commission on July 3, along with the names of the Chair and Deputy Chairs.

In making the appointments, the Chair sought to invite members who have a broad and deep understanding of the issues. As part of the selection process, nominations were invited from the Poverty Truth Commission, Poverty Alliance and Joseph Rowntree Foundation

The Commission will be in place for an initial two year period, in advance of any statutory arrangements that may be put in place via the Child Poverty (Scotland) Bill. The Commission’s first task will be to provide independent advice to Ministers on the first child poverty Delivery Plan, due in April 2018.

Biographies of those appointed to the Commission can be viewed here.

Further details of the Commissions intended form and remit were outlined within a position paper published by the Scottish Government in July.

Source: Scottish Government

Additional £45 Million to Support Growth and Innovation Announced

31/08/2017 - The First Minister has set out key actions the Scottish Government will take to boost growth, create jobs and seize the economic opportunities of the future.

Outlining her vision to see Scotland design and produce the products of the future, the First Minister highlighted the twin importance of innovation and inclusion to ensuring Scotland is in the best position to benefit from changes in the economy.

The First Minister made the announcement as she spoke at Spirit AeroSystems Europe Ltd, where she confirmed the Prestwick-based company has won a contract to produce new carbon wing components for the Airbus A320 aircraft.

With the support of £2.1 million of research and development (R&D) funding from Scottish Enterprise, Spirit were able to use advanced manufacturing technology to secure the new contract, which will create more than 100 jobs.

Recognising the importance of businesses replicating the success of companies like Spirit, the First Minister revealed plans for a 70% increase in Scottish Government funding for businesses to conduct new R&D projects, with an additional £45 million to be invested over the next three years.

In the coming weeks, the First Minister also set out key areas where the government will be making further commitments, to help Scotland capitalise on economic opportunities, including:

• Extra help for the advanced manufacturing, energy and financial technology sectors
• Plans to support graduate entrepreneurs
• Support for companies to access finance
• Plans to make Scotland an early adopter of electric and ultra-low emission vehicles

Nicola Sturgeon said:

“I am determined that Scotland leads on the key technological and social changes. I want Scotland to be the inventor and producer of the innovations that shape the future – not just a consumer of them.

“Spirit AeroSystems is an excellent example of a company providing industry-leading expertise and investing in Scotland. It is significant that research and development grant support from Scottish Enterprise has helped the business win this important new Airbus contract.

“R&D drives innovation, which in turn boosts productivity and economic growth. That is why R&D support from our enterprise agencies will increase almost 70% - from £22 million to £37 million per year. We expect this additional £45 million over three years will unlock a further £270 million R&D 

expenditure by companies

“We need to not only embrace technological innovations, we also must ensure that economic growth is inclusive – so that everyone benefits and has a fair chance to contribute. In the coming weeks I will set out further plans for Scotland’s economy and how we can make further progress towards achieving both of these key aims.”

Scott McLarty, Vice President and General Manager, Spirit UK and Malaysia, added:

“We are pleased that this innovative technology development brings not only improved quality and savings to our customer, but also secures an additional work stream for the UK business.

 “This opportunity leverages our technology, design and manufacturing expertise to better support the needs of our customers and significantly strengthens our ability to secure future work.”

Linda Hanna, Managing Director of Strategy & Sectors at Scottish Enterprise, added:

“I am delighted Spirit has won this key project for their Prestwick site. It's a fantastic example of how Scotland’s expertise and capability in aerospace engineering and manufacturing is successfully competing on the global stage. “Our £2.1 million of R&D support to Spirit demonstrates the work we are doing to drive up levels of innovation and cement Scotland as the top location in the UK for R&D related foreign direct investment.  Today's announcement of an additional £45 million investment in this area by the Scottish Government will be a further boost to Scotland's innovation landscape.”

Background

Spirit AeroSystems received a £2.1 million R&D grant from Scottish Enterprise which, alongside early stage backing from the Aerospace Technology Institute, allowed the company to develop and commercialise new composite technology to enable them to win the Airbus contract. The R&D financial contribution to this project by Spirit, in addition to the SE funding, was £18.3 million.

The contract is to produce the ‘spoiler’ wing component for the Airbus A320 aircraft. A spoiler is a device used to reduce the lift of an aircraft in a controlled way.

Source: Scottish Government