New report on concerns about Scottish welfare fund

Date: 11th December 2024
Category: Basic Health and Welfare
Author:

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This report examines concerns by the Scottish Public Services Ombudsman on the impact of the Scottish Welfare fund (SWF) and it’s use of the High Most Compelling (HMC) priority rating, revealing concerns about fairness and consistency in how support is distributed.

The SWF is a national scheme funded by the Scottish Government to assist people in crisis or on low incomes. The fund is delivered through Scotland’s 32 local authorities, which are responsible for managing it based on local needs and available funding. Local authorities can adjust priority ratings (high, medium, or low) depending on demand and budget. The HMC rating limits support to the most vulnerable individuals when funds are running low.

The report highlights several issues such as unequal support as applicants' access to the fund depends more on where they live than their circumstances, creating national inconsistency. Despite rising costs for food, fuel and suppliers, core funding for the SWF has not increased in years resulting into underfunding. Children and families already in poverty face heightened risks when HMC limits support. The report also notes that current SWF guidance lacks clarity on addressing inequalities, a legal obligation for local authorities. The Scottish Government has pledged to update the guidance to include this requirement.

The report urges a review of funding and application practices to ensure fairness and consistency across Scotland. It encourages open discussion to address the challenges posed by HMC and safeguard the SWF as an important safety net for those in need.

The United Nations Committee on the Rights of the Child in its recent Concluding Observations to the UK and Scottish Government recommends that government should develop or strengthen existing policies, with clear targets, measurable indicators and robust monitoring and accountability mechanisms, to end child poverty and ensure that all children have an adequate standard of living, including by increasing social benefits to reflect the rising costs of living and abolishing the two-child limit and benefit cap for social security benefits.