Home » News » Benefits Take-up: Speech

Benefits Take-up: Speech

20th June 2024:

I am pleased to lead the members’ business debate today. As we all know, the current economic climate is extremely challenging, with years of austerity in Westminster, the cost of living crisis and Brexit. Prices are rising, wages are not going as far as they used to and many people are forced to choose between heating and eating.

In 2023-24, food banks in the Trussell Trust network in Scotland provided 86,000 emergency food parcels for children, which represents a 20 per cent increase since 2018-19. Six in 10—or 60 per cent—of all food parcels that were provided in 2023-24 were for families with children. No one should have to make those choices.

The United Kingdom welfare state was designed as a safety net, and many people are in need of it now but, last year, £19 billion of benefits went unclaimed across the UK, and I am sorry to say that that sum has now increased to £22.7 billion. That enormous sum could make a real difference to the lives of many people.

We can be in no doubt that the benefits that this Government administers in Scotland can be transformational, including the Scottish child payment, which is set to keep 60,000 children out of relative poverty in 2024-25. However, we must ensure that people are claiming what they are eligible for.

The latest statistics on benefits take-up in Scotland from November 2023 show that barriers persist for some benefits. For example, 25 per cent of those who are eligible for the young carer grant do not currently claim it, while 39 per cent of those who are eligible for the funeral support payment do not claim it either. The job start payment, which is a one-off payment of more than £300 for young people who are starting work, has a take-up rate of only 15 per cent. Many eligible people are not applying, and I welcome the steps that the Government has taken to increase take-up, including extending the application window.

Through the winter, I hosted two cost of living round tables in my constituency with local organisations, including Social Security Scotland, Startup Stirling, Citizens Advice Scotland and local housing associations. The aim was to hear about the challenges that face them and their service users, and stigma was mentioned time and again. The Poverty Alliance recommends that the Government develops training on stigma, poverty and inequality. There are also huge misconceptions about the scale of benefit fraud, which leads to stigma from the general public. Any awareness measures need to tackle that, too.

We in the Parliament also have a role to play. The Poverty Alliance points out that stigma is, in part, fuelled by language and messages of politicians and the media.

What we say and how we say it really matters.

The Department for Work and Pensions system is punitive, and research has found that sanctions push people into poverty. Social Security Scotland is designed to put dignity, fairness and respect at the heart of what it does. The Poverty Alliance citizens panel agreed that dealing with Social Security Scotland was much less stigmatising than dealing with the DWP.

Although Social Security Scotland has been working hard to build relationships, I heard that some local organisations were still not sure about its role. Further to my round table, Social Security Scotland has made good connections locally. For example, staff now visit minister Barry Hughes’s church in Raploch at the same time as the food bank, the citizens advice bureau and many other services. That approach works extremely well.

The impact of bringing services to places and events where attendance is high and people are comfortable is huge. The Poverty Alliance found that having positive support from a trusted professional to encourage and help with applications was a tipping point towards applying for benefits.

We also need to consider the rise of in-work poverty. Around 60 per cent of children living in poverty in Scotland live in a household in which at least one adult works. I encourage all my colleagues to engage with local organisations and get them in a room together. Members will learn so much, and those connections can lead to amazing partnerships.

I seek assurances from the minister that the Government will seek to alleviate the barriers to take-up. The Joseph Rowntree Foundation estimates that £78 billion of public spending in the UK is linked to dealing with poverty and its consequences. Poverty wastes potential and deprives us of the talents and skills of many people.

We are living in tough times, and we need to ensure that everyone is aware of the help that is out there for them and feels able to accept it.