Question reference: S5W-35582
- Asked by: Elaine Smith, MSP for Central Scotland, Scottish Labour
- Date lodged: 26 February 2021
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Current status: Answered by Kate Forbes on 8 March 2021
Question
To ask the Scottish Government, in light of the reported increase in the number of universal credit claimants over the last nine months, whether additional resources will be transferred to local authorities to meet the cost of any additional demand for passported benefits.
Answer
The Scottish Government is very aware of the financial impact the coronavirus crisis has had on people across Scotland. This is why we have continually called on the UK Government, which has responsibility for all income-related benefits, to reverse welfare cuts which are hitting harder than ever, and to make fundamental alterations to Universal Credit.
For our part the Scottish Government has already taken exceptional measures in every area of government to deal with the challenges of COVID-19 and that is particularly clear in the support for local services. To date, the Scottish Government have taken decisive action to commit £456.1 million in additional funding through the local government finance settlement to local authorities, including a further £25 million to meet increased demand for the Council Tax Reduction Scheme and over £50 million to enable the continued provision of Free School Meals during school closures and holiday periods for around 156,000 children and young people.
Additionally, I announced a package of financial flexibilities on 8 October which could be worth up to £600 million to Scotland’s councils over the next two years.
The Scottish Government and COSLA have also finalised a lost income scheme, worth £200 million this financial year. Further general COVID-19 consequentials of £275 million in 2020-21 and £259 million for 2021-22 have also been confirmed to support local councils to meet demand for services.
Taken the financial flexibilities and additional funding together, brings the value of the overall COVID-19 support package for councils up to almost £1.8 billion over this year and next.