Five Family Payments: evaluation

Executive Summary

Background

The Social Security (Scotland) Act 2018 introduced a range of new benefits devolved to Scotland. The Five Family Payments have been introduced using these new powers. They are key Scottish Government measures contributing towards the national mission to tackle child poverty.^[1] The Five Family Payments are:

• Scottish Child Payment: which aims to provide regular, additional financial help to low-income families. The payment is currently £27.15 per week for every eligible child aged under 16. It opened for applications in November 2020.
• Best Start Grant: which aims to reduce financial pressure on low income families at key transition points. It is made up of the following one-off payments:
  • Pregnancy and Baby Payment, which is a payment of £767.50 on the birth of the first child and £383.75 on the birth of any subsequent children. It opened for applications in December 2018.
  • Early Learning Payment, which is a payment of £319.80 for children between 2 and 3.5 years old to support child development. It opened for applications in April 2019.
  • School Age Payment, which is a payment of £319.80 to help with the costs of preparing for school. It opened for applications in June 2019.
• Best Start Foods: which aims to provide financial support for low income families to access nutritious food at the point of need. The Best Start Foods system went live in August 2019.

Previous evaluations of these benefits were undertaken separately, focusing on immediate and short-term policy outcomes. This report presents a combined evaluation of the Family Payments. It re-evaluates progress towards immediate and short-term outcomes, and also evaluates progress towards medium-term policy outcomes. Additionally, it considers how the Five Family Payments may have contributed to the Scottish Government’s long-term aims (e.g. reduced child poverty). The policy outcomes of the Five Family Payments mostly relate to the experience of people who apply for the benefits, and the impact of the benefits on people who receive them.

The evaluation is largely based on findings from commissioned, mixed methods research that was undertaken by ScotCen. Their report is attached in full at Annex A. The research involved the collection of self-reported data via a large survey of Five Family Payments recipients, and interviews with both recipients and stakeholders who support people in low income families. However, the evaluation also draws on information from a range of other sources, such as Official Statistics, Social Security Scotland research, and research conducted by external organisations.

Progress towards immediate policy outcomes

Promotion and take-up of the Five Family Payments

People find out about the Five Family Payments in a range of ways, primarily word of mouth, social media, and via health professionals. People across Scotland with a range of demographic characteristics have applications approved for the Five Family Payments. Recent take-up estimates also show the majority of eligible people have taken up the benefits. Overall, this evidence suggests the Five Family Payments are well promoted. However, those estimates also show around 1 in 10 eligible people were not receiving some of the Five Family Payments, suggesting further steps are needed to maximise take-up.

There are potential barriers to receiving the Five Family Payments. Awareness can be an issue, with some people claiming the benefits later than they could have because they did not know about them initially, or not claiming them at all. Stakeholders say awareness can be low amongst specific groups, such as migrants, families with older children, women pregnant with their first child, and lone parent fathers. Stakeholders also report that families with limited English face significant barriers such as struggling to read application forms and lacking official documentation. Other potential barriers raised by stakeholders include having initial applications denied (e.g. due to not providing enough supporting evidence, or applying before becoming eligible), digital poverty, digital illiteracy, stigma, being a survivor of domestic abuse, and a perceived lack of advisors in Scotland with in-depth knowledge of the benefits system.

Applying for and receiving the Five Family Payments

The vast majority of Five Family Payments applicants provide positive feedback about the application process, and say they are treated with dignity, kindness and respect by Social Security Scotland. According to the qualitative evidence, people find the application forms straightforward to complete, and say they use simple language that is easy to understand. Applicants also appreciate being able to make joint claims for the benefits on a single application form. Additionally, those who interact with Social Security Scotland during the application process say that staff are friendly and helpful.

Five Family Payments application processing times have also improved in recent years, with most applicants saying their applications are processed in a reasonable timeframe. The vast majority of people are also satisfied with the process of receiving payments. Additionally, automatic payments for the Best Start Grant Early Learning Payment and School Age Payment are welcomed by the majority of recipients, with testimony from recipients saying they are more convenient and reduce worry about applying for the payments at the right time. ^[2]

Despite these positive findings, the evidence indicates there are some issues with the Five Family Payments application process. Notably, around 1 in 3 applicants had their applications denied in 2024/25. As applications are denied in cases where applicants are not eligible to receive the benefit(s), this indicates that there is some confusion over the eligibility criteria amongst applicants. Additionally, around 1 in 3 applicants would like to have been informed about other benefits or additional forms of support when making an application, but were not.

Using the Best Start Foods card

The majority of Best Start Foods recipients spend most or all of the money on the card, find it clear how to use the card, and use the card without difficulties. The qualitative evidence also indicates the card provides access to a range of retailers and healthy foods. However, despite these positive findings, around 1 in 3 recipients do not use all or most of the money on the card, and almost 1 in 10 report having issues with it. Reported issues include technical difficulties (e.g. contactless payments not working), embarrassment using the card, and views that the prescribed foods list is too restrictive.

Progress towards short-term policy outcomes

Impact on child-related spend

The evaluation shows that the Five Family Payments have helped to increase child-related spend. Most people who receive Scottish Child Payment use the money for child-related expenses. The majority say that the payments help them to buy essentials for their child (e.g. food and clothes), school-related items (e.g. pencils and bags), and treat items (e.g. ice-cream and toys). However, of these costs, recipients are least likely to say the payments help for treat items.

The qualitative evidence reflects the findings above. It indicates that, for Scottish Child Payment, food and clothes are key items of child-related spend. Some parents say this is how they spend most (or all) of the money, citing, for example, how quickly their child grows out of clothes. Also, while some parents say Scottish Child Payment lets them buy their child treat items despite cost of living increases, others say they need the money for essentials, and use it to buy their child treats rarely, if at all.

The majority of Best Start Grant recipients also use the money for child-related expenses, and say the payments help to buy their child items at key transition points, such as starting nursery or school. According to the qualitative evidence, the large one-off payments help with expensive items such as prams or bedroom furniture, which some parents say they would have gone without or delayed buying otherwise. For Best Start Foods, most recipients say the payments help to pay for first infant formula milk, in cases where they buy it. Parents also say they use Best Start Foods to buy a wide range of healthy foods for their child.

Impact on participation in social and educational activities

The majority of people who receive Scottish Child Payment and Best Start Grant say the payments help their child take part in social and educational activities. The qualitative evidence shows that Scottish Child Payment lets children take part in activities such as sports, drama and music, which some parents say they could not afford otherwise. The qualitative evidence also indicates that, compared to the other Best Start Grant payments, recipients are most likely to use Early Learning Payment for social and educational activities. Examples of spend include annual passes for local activity centres, or trips to the zoo.

Impact on buying and eating healthier foods

Best Start Foods has a range of positive impacts relating to healthy foods and healthy eating. Most Best Start Foods recipients say the payments help them to buy healthy foods for their family, help both their child and themselves to eat healthier foods, and help them to make healthier meals for their families. According to the qualitative evidence, some parents say they would cut back on healthy foods without the payments.

Impact on financial pressure and money-related stress

The evaluation shows that the Five Family Payments have helped to reduce financial pressure and money-related stress amongst recipients. Most say Scottish Child Payment, Best Start Grant and Best Start Foods help them to pay for household essentials (e.g. rent, bills, food). The majority also say that each of the benefits make them feel less worried about money.

According to the qualitative evidence, many parents rely on Scottish Child Payment to afford household essentials (e.g. calling it a ‘life saver’). The payments can also make parents feel more in control of their finances and able to meet unexpected costs. However, some parents still struggle financially and experience money-related stress despite Scottish Child Payment, often citing the impact of cost of living increases.

The qualitative evidence indicates that Best Start Grant and Best Start Foods help to reduce financial pressure by providing dedicated income for specific costs (e.g. buying what children need when starting school, or buying healthy foods). This can free up other income to pay for household expenses, and helps to reduce worries about affording essential items.

Progress towards medium-term policy outcomes

Impact on debt and borrowing

The evaluation shows that the Five Family Payments have helped to reduce incidence of debt and borrowing amongst recipients. The majority of people who receive Scottish Child Payment, and around half who receive Best Start Foods, agree the payments have meant they do not need to borrow money to pay for essentials (e.g. rent, food or bills). The majority of Best Start Grant recipients agree the payments meant they did not need to borrow money to buy what their child needed at key transition points (e.g. when they were born or started school).

The qualitative evidence shows that Scottish Child Payment has stopped some recipients borrowing money from family, credit cards or loan companies. It has also enabled recipients to borrow less frequently, pay off debts, and save for unexpected costs. However, some recipients say they still need to borrow money despite Scottish Child Payment. Also according to the qualitative evidence, Best Start Grant recipients are clear that without the payments they would have borrowed to buy what their child needed at transition points.

Impact on food insecurity and material deprivation

Scottish Child Payment and Best Start Foods have helped to reduce food insecurity. Most recipients agree the payments have meant they do not need a food bank or food parcels. According to qualitative evidence, Scottish Child Payment has stopped recipients using food banks or cutting back on food, and/or reduced anxiety about affording food for their child. However, some recipients say they still need to cut back on food so their children can eat. Exploratory analysis by the Fraser of Allander Institute, published in 2024, also provided some preliminary evidence that Scottish Child Payment decreased food bank usage across some, but not all, groups of households with children.^[3]

Overall, the evaluation shows that the Five Family Payments have helped to reduce material deprivation for families. As detailed above, the benefits have helped to increase child-related spend, reduce financial pressure and money-related stress, reduce borrowing, and reduce food insecurity. Notably, families with three or more children are particularly likely to report positive outcomes across all of these measures, indicating they have especially benefitted from the Five Family Payments.

Despite these positive findings, there are people who receive the benefits who are still experiencing material deprivation. Notably, families with a disabled person are particularly likely to be struggling financially and experiencing food insecurity despite the assistance of the Five Family Payments. Additionally, some recipients express concerns about Scottish Child Payment or Best Start Foods ending when their child is no longer eligible.

Impact on health and wellbeing

The evaluation shows that the Five Family Payments have helped to improve the health and wellbeing of recipients and their children. With regards to recipients:

• Most Scottish Child Payment, Best Start Grant, and Best Start Foods recipients agree the benefits have improved their own mental health and/or happiness
• Almost half of Scottish Child Payment, Best Start Grant, and Best Start Foods recipients agree the benefits have improved their own physical health.

The qualitative evidence helps to explain these health impacts. For example, Scottish Child Payment recipients say the payments provide them with intense relief at being able to afford essential items for their child and household. Best Start Grant recipients say the payments have made them feel less socially isolated, in cases where they have used the money to take their child out to meet with friends. Best Start Foods recipients say the payments allow them to buy healthy foods which support their physical health.

With regards to children:

• Around half of Scottish Child Payment, Best Start Grant and Best Start Foods recipients agree the benefits have improved their child’s mental health and/or happiness.
• Most Best Start Foods recipients, and around half of Scottish Child Payment and Best Start Grant recipients, agree the benefits have improved their child’s physical health.

The qualitative evidence shows the benefits impact children’s health in various ways. For example, Scottish Child Payment helps children fit in with their peers by enabling them to take part in activities, or meet with friends. Recipients say this improves their child’s confidence and self-esteem, and, in some cases, improves their engagement at school. Recipients also say that taking part in activities is good for their child’s physical wellbeing. Those who receive Best Start Foods say the payments improve their child’s physical health by enabling them to eat more fruit and vegetables.

Impact on labour market and education barriers

The evaluation shows that the relationship between Scottish Child Payment and the labour market is complex. Analysis by the Scottish Government has found that Scottish Child Payment has not negatively affected labour market participation at scale in the economy. Separate to this analysis, survey evidence shows Scottish Child Payment has not impacted the majority of recipients’, or their partner’s, work situation. In the minority of cases where recipients say the payments have impacted either their own work situation, or their partner’s work situation:

• The most commonly reported work impacts indicate the payments support recipients to participate in the labour market (e.g. by helping with work costs)
• Other reported work impacts indicate the payments support recipients to reduce their labour market participation (e.g. by working fewer hours).

The qualitative evidence provides more detail on this topic. It shows that Scottish Child Payment contributes to work costs such as lunches, travel, and childcare, which helps some recipients to work or continue working. It also shows Scottish Child Payment means some recipients can afford to take steps like reducing hours, going part-time, or taking a longer parental leave. Parents say this enables them to spend more time with their child, or in certain cases to look after a disabled child.

However, the qualitative evidence also shows that, in certain cases, recipients who are close to losing eligibility for Universal Credit due to earnings from work face challenges to labour market participation. These recipients say that increasing pay from work could make them ineligible for Universal Credit and consequently Scottish Child Payment, making them worse off financially overall.

The evaluation also shows that Scottish Child Payment has an impact on education for around 1 in 10 recipients or their partners. In these cases, payments help to reduce barriers to education e.g. by covering associated costs. According to the qualitative evidence, recipients say the payments help them to pursue an education by offsetting losses from Universal Credit, or by helping to cover the costs of household essentials.

Conclusion and considerations for policy and practice

The evaluation shows that the Five Family Payments have largely achieved their immediate, short-term, and medium-term policy outcomes. On this basis, it can be said that they will be contributing to the Scottish Government’s long-term aims for children and their families, such as reduced child poverty. However, despite these positive findings, the evaluation has also highlighted that there are some outstanding issues with the benefits. These issues and related policy and practice considerations are as following:

1. Recent estimates show around 1 in 10 eligible people were not receiving the Five Family Payments. The evidence indicates this can be due to low awareness of the benefits. Stakeholders who support low income families say awareness can be low for particular groups (e.g. migrant families). Stakeholders also identify other barriers to applying for the benefits, such as having limited English, digital poverty, being a survivor of domestic abuse, stigma, and a perceived lack of benefit advisors in Scotland with in-depth knowledge of the benefit system. Therefore, to maximise take-up of the Five Family Payments, further promotion may be required, and steps taken to address barriers faced by marginalised groups who could be eligible for the benefits.

2. Around 1 in 3 Five Family Payments applications are denied. As applications are denied in cases where applicants are ineligible for the benefit(s), this is likely to be caused in some cases by confusion around the eligibility criteria amongst applicants. Additionally, around 1 in 10 people say the Social Security Scotland website does not make their eligibility clear. However, Social Security Scotland does not publish denial reasons as part of Official Statistics. As such, it is not clear which aspects of the eligibility criteria are not being met by denied applicants, and are driving application denial rates overall. It may therefore be necessary to (a) review reasons for application denials, and (b) take steps to mitigate them, such as clarifying eligibility rules.

3. Around 1 in 3 applicants who speak to Social Security Scotland staff would like to be informed about other benefits or additional forms of support (e.g. Citizens Advice Scotland) when making an application, but are not. Therefore, steps could be taken to ensure that applicants who come into contact with Social Security Scotland staff are always informed about other benefits or support, where applicable.

4. Around 1 in 3 recipients do not use most or all of the money on their Best Start Foods card, and around 1 in 10 experience issues or difficulties with it – e.g. contactless payments not working, or a lack of clarity where the card can be used. As such, it may be necessary to explore ways to increase the proportion of recipients using Best Start Foods payments, and investigate technical issues people experience when using the card.

5. The Five Family Payments have a positive impact on recipients’ finances and have helped to reduce material deprivation for low income families. However, recipients can still face financial difficulties and material deprivation, and this has been exacerbated by the cost of living crisis. Notably, families with a disabled person are especially likely to be struggling despite receiving the Five Family Payments, and some parents express concerns about the payments ending when their children are too old to be eligible for the benefits. As a result, the impact of the Five Family Payments should continue to be monitored over time, and the rate of the benefits kept under review.

6. Labour market analysis indicates Scottish Child Payment is not negatively affecting labour market participation at scale in the economy. However, in certain cases, Scottish Child Payment can discourage people from increasing income from paid work if they are close to losing eligibility for Universal Credit due to work-related earnings. This is because it would also make them ineligible for Scottish Child Payment, and possibly worse-off overall. As such, aspects of Scottish Child Payment’s design may need to be reviewed to see if changes are necessary or possible. Additionally, the impact of Scottish Child Payment on labour market participation should continue to be analysed over time.

7. The evaluation findings are largely based on recipients’ perception of impact, as opposed to objective measures of impact. For example, recipients say the payments have meant they do not need to borrow money to pay for household essentials. However, further data would be required to measure actual changes to household debt as a result of the benefits. This could potentially be achieved through data linkage. This would involve matching data on people receiving Scottish benefits with data on the same people held by other organisations (e.g. DWP, HMRC and the NHS). Efforts should therefore be made to explore the feasibility of obtaining data to objectively assess the impact of the Five Family Payments.