Bringing Hope, Building Futures: Tackling child poverty delivery plan 2026-2031 – annex 1: Child Poverty (Scotland) Act 2017 requirements

Part B - Responding to the recommendations and advice of the Poverty and Inequality Commission

The following details each of the Poverty and Inequality Commission’s 14 recommendations to Scottish Ministers and the Scottish Government’s response, including where further information can be found in the delivery plan. Recommendations have been summarised in line with the Poverty and Inequality Commission’s key messages summary of advice.

Recommendation 1: Minimum Income Guarantee

The Poverty and Inequality Commission said the Scottish Government should:

• Take action to progress towards a Minimum Income Guarantee as a matter of urgency.
• Commit to implementing the steps on the Building the Guarantee: 2026-31 road map, working with the UK Government as necessary.

Scottish Government response:

The Scottish Government response to the independent Minimum Income Guarantee Expert Group’s report set out the actions we are taking to transform the lives of people across Scotland and making progress towards our shared ambition - a Scotland that has accessible public services, an improved and reliable safety net and where people feel fulfilled and able to participate fully in society.

The Plan sets out how we will build on this, detailing the action we are taking to drive targeted support for those who need it most, including through our intention to introduce an additional payment for families with children under 1 receiving Scottish Child Payment.

The Plan also sets out a range of action to transform the lives of people across Scotland, ensuring access to public services and support where and when required. This includes our approach to Whole Family Support, ensuring families can receive person centred, holistic support which can adapt to their needs. This also details how we will work closely with third sector partners, delivering vital support to children and families and promoting wider systems change.

However, the UK Government retains powers over a number of key policy levers including the minimum wage, living hours and Universal Credit. We have repeatedly urged the UK Government to act at a UK level to tackle poverty, by abolishing harmful policies such as the Benefit Cap and young parent penalty, and by addressing fundamental flaws in Universal Credit such as the five week wait.

Further detail of action is set out in:

• Section 3 – Maximising incomes from social security and benefits in kind
• Section 4 – Supporting children and families to thrive

Recommendation 2: Scottish Child Payment

The Poverty and Inequality Commission said the Scottish Government should:

• Increase the Scottish Child Payment
• Expand eligibility for the Scottish Child Payment to include children aged 16-19 in full-time education.
• Reform the payment to avoid the “cliff edge” where families lose support due to small income changes

Scottish Government response:

The challenging economic conditions facing the Scottish Government have required tough decisions to be made in developing the Scottish Budget for 2026-27 to ensure that we are directing resources in a way which makes the biggest difference.

Despite these pressures, we have set out a commitment to increase the Scottish Child Payment to £40 per week for families with children under 1, who we know are at greater risk of poverty. The Scottish Child Payment will also be increased in line with inflation to £28.20 in 2026-27 for all eligible children, an increase of over 180% since launch. In addition, eligible young people aged 16-19 in non-advanced education will continue to be able to access Education Maintenance Allowance worth £30 per week.

Going forward, we are committed to reviewing the legislative footing on which Scottish Child Payment is based and have added powers into the Social Security (Scotland) Act 2018 through the Social Security (Amendment) (Scotland) Act 2025 that will allow us to do so in due course. This will allow the Scottish Government to make regulations for the Scottish Child Payment as a standalone payment, in line with other forms of assistance delivered by Scottish Ministers.

Further detail of action is set out in:

• Section 3 – Maximising incomes from social security and benefits in kind

Recommendation 3: Advice services and income maximisation

The Poverty and Inequality Commission said the Scottish Government should:

• Provide long-term, secure funding
• Better outreach to priority families
• Recognise advice services as a core part of Scotland’s anti-poverty infrastructure

Scottish Government response:

We recognise the vital role of advice services in supporting families in Scotland. This section sets out the action we are taking to support advice services and ensure people are able to receive the benefits which they are entitled to, including maximising take-up of both Scottish and UK Government benefits, continuing our successful Advice in Accessible Settings Fund, with increased investment, until March 2029, and exploring options with other public sector partners for improving access to advice.

We have also committed to providing investment in welfare, income maximisation and debt advice services over the next two years through multi-year grants, providing greater stability and certainty for the sector and improving staff retention which will positively impact on service quality for households using these services.

Further action will be set out through annual progress reports on child poverty.

Further detail of action is set out in:

• Section 3 – Maximising incomes from social security and benefits in kind

Recommendation 4: Improving the quality of employment

The Poverty and Inequality Commission said the Scottish Government should:

• Use public funding to drive fair work (better pay, flexibility and access)
• Support disabled people and marginalised groups into good jobs
• Use the policy levers identified by the Fair Work Convention to promote Fair Work

Scottish Government response:

This part of the Plan details a range of action to support parents, carers and young people to access good, sustainable and secure jobs and drive positive change within the labour market.

This includes continuing engagement with employers to promote and embed a Fair Work approach and practices, investing in a Workforce Development Fund to incentivise employers to support employment and progression opportunities, as well as utilising public sector funding and contracts.

The section outlines how we are working with partners to create more and better jobs for families and continuing to support real Living Wage and Living Hours accreditation.

It also details how we will go further to improve services to support disabled people, including through providing specialist employability support for disabled people, extending the scope of pay gap reporting and exploring the possibility to introduce requirements on listed authorities in relation to this.

Further detail of action is set out in:

• Section 1 – Increasing earned incomes

Recommendation 5: Increasing the effectiveness of employability services

The Poverty and Inequality Commission said the Scottish Government should:

• Provide more targeted, specialist support
• Have better collaboration with employers
• Focus on quality jobs, not just any jobs

Scottish Government response:

This part of the Plan details our action to ‘provide aligned skills and employment support for parents and young people’ to help more people access employment. This includes providing multi-year funding for devolved employability services which provide flexible, person-centred support in order to help reduce barriers to the labour market.

The Plan also recognises the importance of upskilling, flexibility and fair work to allow parents to sustain and progress in quality employment, increase their household income and reduce in-work poverty. This details action including investment in programmes widen access to the NHS workforce and to support parents to access the skills they need to enter, sustain and progress in work.

Building on our Employability Strategic Plan 2024-27, we have also committed to work with employers and Local Employability Partnerships to enhance the in-work support offer for parents. This includes developing a targeted Transport to Employment offer, in partnership with transport providers, to address challenges related to accessibility, affordability and availability of transport that may restrict pathways into work.

Further detail of action is set out in:

• Section 1 – Increasing earned incomes

Recommendation 6: Increasing access to and affordability of childcare

The Poverty and Inequality Commission said the Scottish Government should:

• Take urgent action to increase uptake for eligible two-year olds
• Set out a clear plan to expand childcare for one and two year olds, starting with children from families with low incomes
• Ensure better access for disabled children and families

Scottish Government response

The sub-section ‘Expanding the availability of flexible and affordable childcare for families’ sets out the action we are taking in this area.

This includes through delivery of a universal breakfast club offer for primary school aged children, with provision in all primary and special schools by August 2027, our commitment to increase wrap-around activity clubs for primary school aged children and further additional investment in childcare. We have also outlined our commitment to increasing take-up of funded childcare for eligible 2s.

Our approach recognises the specific challenges for families with a disabled child or a child with additional support needs. We will use evaluations, recommendations and learnings from the those accessing and delivering test of change projects, in specialist and non-specialist settings, to help inform our future system of school age childcare.

Any further action in relation to Early Learning and Childcare will be set out by an incoming administration.

Further detail of action is set out in:

• Section 1 – Increasing earned incomes

Recommendation 7: Maximise the impact of Scottish Government’s Affordable Housing Supply Programme and existing social housing in tackling child poverty

The Poverty and Inequality Commission said the Scottish Government should:

• Utilise better data on who benefits from affordable housing
• Take the needs of families living in unaffordable private rentals into consideration in social housing allocations

Scottish Government response:

The sub-section titled ‘Delivering more warm and affordable homes for families’ sets out our commitment to invest in the delivery of more affordable homes. This includes investment in Discretionary Housing Payments to support families in the private rented sector with the ongoing UK Government freeze to Local Housing Allowance in order to reduce housing-related poverty and homelessness.

As part of our housing emergency response we have engaged with councils with the highest sustained temporary accommodation pressures and requested information from them in order to support redesignation of suitable temporary accommodation into longer-term use and backfill of stock through targeted acquisitions of larger family sized homes.

In addition, we are continually reviewing data collection regimes, working with local government, Registered Social Landlords and the Scottish Housing Regulator, as part of continuous improvement.

Priority for social housing is based on housing need and an assessment of an applicant’s individual circumstances. However, we will consider what further guidance we can provide in relation to affordability during the next review of the social housing allocations practice guidance.

Our efforts to tackle the housing emergency have tested and exposed the limitations of the current housing delivery arrangements. Given the scale of the challenge, and the scale of our ambition, it has become obvious that a step change is needed in our approach. That is why we intend to establish More Homes Scotland.

The agency will accelerate housing delivery across all tenures, with a particular focus on affordable housing. By increasing availability of affordable homes, we will drive forward the core priorities, particularly our child poverty ambitions. This will ensure more children, and their families, have a safe, warm and affordable home.

Further detail of action is set out in:

• Section 2 – Cost of living

Recommendation 8: Increase housing accessibility

The Poverty and Inequality Commission said the Scottish Government should:

• Update standards to ensure accessible housing for disabled families

Scottish Government response:

We fully support the desire to ensure the accessibility and adaptability of Scotland’s homes and reaffirmed our commitment to deliver change in this area during the passage of the Housing (Scotland) Bill.

We have consulted on proposed updates to the Housing for Varying Needs design guide and on proposed changes to building standards and guidance to implement an all-tenure Scottish Accessible Homes Standard. During Stage 3 of the Bill in the autumn of 2025, we committed to instituting change within two years.

In developing this work, detailed consideration is being given to consultation feedback and we are committed to working closely with the building sector and stakeholders, including those with lived experience, as work progresses.

Further detail of action is set out in:

• Section 2 – Cost of living

Recommendation 9: Ensuring pursuit of public debt does not deepen poverty

The Poverty and Inequality Commission said the Scottish Government should:

• Use debt as a warning sign that households may need support

Scottish Government response:

We know that public debt, including council tax debt, can trap families in poverty and ‘Tackling public sector debt’ is one of the 15 priorities identified over the life of the Plan.

The Plan details action we are taking to support families, including continuing to provide support through the Council Tax Reduction scheme and investing in the council tax debt advice project with Citizens Advice Scotland, promoting a dignified and empathetic approach to debt collection and changing the way debts are collected and people are supported.

We are also working collaboratively with partners to explore and develop data-sharing pathways with partners, helping to identify families experiencing debt and support fairer and more effective debt recovery.

Further detail of action is set out in:

• Section 2 – Cost of living

Recommendation 10: Supporting families with fuel costs

The Poverty and Inequality Commission said the Scottish Government should:

• Reinstate the Fuel Insecurity Fund
• Press the UK Government to introduce an energy Social Tarriff

Scottish Government response:

The Plan outlines the action we are taking in order to ensure access to warm homes which are affordable to heat by progressing actions such as Warmer Homes Scotland and Areas Based Schemes, as well as funding for advice services. It also outlines further action we will take to support people struggling with bills, including working with suppliers and consumer organisations to strengthen how support is provided to those who need it most.

The Scottish Government will continue to press the UK Government to urgently deliver a social tariff providing an automatic and targeted discount on energy bills to address unaffordable bills at source.

The Plan notes that we will work to ensure that a future strategy meets the ambitions and challenges of tackling fuel poverty, as we undertake our duties under the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019.

Further detail of action is set out in:

• Section 2 – Cost of living

Recommendation 11: Whole Family Support Approach

The Poverty and Inequality Commission said the Scottish Government should:

• Clearly set out a theory of change explaining how Whole Family Support will reduce poverty
• Demonstrate evidence of impact
• Continue investment in core poverty-reduction levers

Scottish Government response:

The Public Service Reform Strategy, published in June 2025, sets out the evidence based need for a Whole Family Support approach to be taken and the benefits to children and their families of doing so. The strategy set out examples of programmes where person-centred and holistic approaches were being delivered but notes the need for joined up services and integration.

The Whole Family Support approach seeks to overcome barriers at a national level which impacts on the delivery on integrated person-centred and holistic support at a local level. This approach has a key focus on alignment and simplification of policy, funding and delivery of support and accountability.

Section 4 of the Delivery Plan restates our ambition for a person-centred and holistic Whole Family Support approach, building on our commitment to making existing support systems work better for families in or at risk of poverty.

Through this we are taking a two-step approach that will see ‘early adopter’ local authorities come on board first to inform development of the approach. Learning and insight gained through this first phase will be utilised to inform development of a Whole Family Support approach, including the development of an informed theory of change, that can subsequently be expanded in both scope and geographical spread.

Further detail of action is set out in:

• Section 4 – Supporting children and families to thrive

Recommendation 12: Third Sector Funding

The Poverty and Inequality Commission said the Scottish Government should provide:

• Multi-year funding for proven third sector partners
• Parity of employment with public sector terms and conditions

Scottish Government response:

Through this Plan we recognise the essential role played by the third sector and acknowledge that it needs support, stability and the opportunity for longer term planning and development.

The Fairer Funding Pilot is the first step towards mainstreaming multi-year funding agreements across the third sector, and balances our ambitions against the challenging financial situation. In addition to this, and building on the impact of the Pilot, we are providing greater funding stability with 2-year funding agreements for more third sector organisations through the Delivering Equally Safe Fund, 3-year funding agreements for key Disabled Person’s Organisations and multi-year funding for welfare, debt and income maximisation advice services.

To further embed this approach, boost outcomes and support communities, we will develop an agreement with the Third Sector to strengthen its voice and improve lives. The Third Sector Partnership will be guided by the key principles in the Scottish Council for Voluntary Organisation’s 2026 manifesto, to set out how both can work together to enhance services.

Through the Whole Family Support funding package set out within this Delivery Plan we have also allocated £20 million for Third Sector partners to offer an accessible front door to integrated public services.

Further detail of action is set out in:

• Section 4 – Supporting children and families to thrive

Recommendation 13: Making better use of public assets

The Poverty and Inequality Commission said the Scottish Government should:

• Improve access to public assets for community and third sector organisations

Scottish Government response:

We are undertaking work to help Scottish communities make better use of public assets by enabling community control and ownership of public land and buildings through asset transfer legislation under Part 5 of the Community Empowerment (Scotland) Act 2015. This includes transferral of rights to community organisations, making it easier for them to use public assets. We are working closely with the National Asset Transfer Action Group to help support public bodies develop transparent and accessible approaches that support asset transfers locally.

The review of asset transfer report published in March 2025 found that Scotland is viewed as the most advanced nation in the UK for community asset acquisition due to the legislation in place and that the legislation is an enabler for community organisations to take ownership or control of public assets.

Recommendation 14: No Recourse to Public Funds/Restricted Eligibility

The Poverty and Inequality Commission said the Scottish Government should:

• Review eligibility rules for services and benefits
• Fund specialist legal advice for those with No Recourse for Public Funds
• Ensure that local authority support provided to those with No Recourse for Public Funds is consistent

Scottish Government response:

Asylum, immigration, including No Recourse for Public Funds (NRPF) policy, are reserved to the UK Parliament. The Scottish Government continue to raise NRPF issues which impact people living in Scotland with the UK Government, particularly the Home Office, and will continue to do all we can within devolved powers, to protect communities and support people.

We continue to work closely with COSLA and other partners to ensure that people subject to the NRPF condition can access essential support. This includes continued delivery of the Casework and Cash First project with Fairway Scotland to ensure access to specialist advice alongside the provision of essential cash support for the most destitute and updating the Migrants Rights and Entitlements guidance to ensure that local authorities have up to date guidance on the support that can be provided to people with NRPF.