Minimum Income Guarantee - modelling of social security options

Footnotes

1 This paper was updated in September 2024 in line with updated Minimum Income Standard figures.

2 https://www.gov.scot/groups/minimum-income-guarantee-steering-group/

3 Joseph Rowntree Foundation (2023) An Essentials Guarantee

4 Single-adult households and children of primary- and secondary-school age are used for this calculation. On average, excluding housing and childcare costs, the 2024 MIS for a single-adult household increased by an average of £261.16 when the first child is added and the child is of primary- or secondary-school age. Seventy-five percent of that value is £195.87. The UC child element allocates the equivalent of £66.22 per week (£287.92 per month) in 2024-25, so the remaining gap is £129.65 per week (£195.87 - £66.22).

5 This is equivalent to adding nSCP as an additional element in the UC award alongside the existing child element, except that nSCP is not subject to policies such as the two-child limit and the benefit cap and does not affect eligibility for benefits with UC as a passporting benefit.

6 Calculated as maximum UC award divided by taper rate plus work allowance.

7 Calculated as £52 times number of children divided by taper rate, plus zero-UC threshold.