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Free universal benefits and services operated by the SNP are now costing more than £5billion a year but there is no clear evidence they are better at tackling poverty than targeted measures.
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they → click → measures
A series of ‘freebies’ including prescriptions, childcare, tuition fees and bus passes now cost an estimated £5.1billion a year, according to a report by the Poverty and Inequality Commission, which was set up by SNP ministers to provide advice and scrutiny.
uncertain
which → include → advice
But the report concluded that there is no single answer to whether a universal or more targeted approach is better at reducing poverty.
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approach → conclude → poverty
It said that the SNP approach is based on a ‘social contract’ where higher earners pay more in tax, which supports universal provision which everybody benefits from.
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everybody → say → which
But the report concludes: ‘There is no single answer to whether universal or targeted approaches are more effective in reducing poverty.
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approaches → conclude → poverty
Rather, a combination of universal and targeted approaches is required which are designed for the outcomes that are desired, that effectively support those who require the most support, are appropriate to the policy area, meet the local or national context, and which are generous enough to make a difference.
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which → require → difference
‘A case by case consideration is needed to determine the best policy.
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consideration → need → policy
However, these decisions cannot be taken in isolation and need to be part of coherent approach, with trade-offs required to reach an optimal combination of policies.
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offs → take → policies
‘Scotland has developed its own combination of universal services and targeted payments over almost three decades of devolution.
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Scotland → develop → devolution
To reach its priority of eradicating child poverty, the Scottish Government needs to ensure that it utilises both universal and targeted policies to effectively support those most in need.’
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it → reach → need
The report by the Poverty and Inequality Commission, which was established by SNP ministers in 2019 and is an advisory non-departmental public body, assessed the costs associated with free universal benefits and services.
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which → establish → benefits
Around £145m is spent by the Scottish Government every year on free exe exams
Nicola Sturgeon introduced baby boxes for every newborn in Scotland.
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Sturgeon → spend → Scotland
It policy now costs £8.8m a year
It found that the most expensive policy is free prescriptions, first introduced in 2011, which is now costing an estimated £1.8billion a year.
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which → cost → 1.8billion
This was followed by the £1.1billion a year spent on providing 1,140 hours of free childcare, and £1billion on free personal care.
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This → follow → care
In addition, £473million is spent annually on free bus passes for people over the age of 60 and under 22, £288million on free university tuition, £278million on free school meals in primary 1-5, £145million on free eye exams, and £8.8million on the ‘baby box’ of items for newborns.
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473million → spend → newborns
An analysis for the Commission by the Fraser of Allander Institute at Strathclyde University found that free school meals, funded childcare and free bus travel all benefit lower-income households more than higher-income households, while free prescriptions and eye tests benefit families equally.
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prescriptions → find → families
It found that free prescriptions benefited 67 per cent of households, which was more than any of the other services, with the average value of £1,000, followed by 62 per cent which benefit from an average of £300 from free bus passes.
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which → find → passes
Only 3 per cent of households are benefiting from funded childcare but the average value is £17,000, while 4 per cent benefit from free tuition with an average saving of £3,100.
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cent → benefit → 3,100
It found ‘little to no evidence’ on the distributional impacts of free prescriptions, eye appointments, tuition fees and free school meals.
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It → find → prescriptions
The Institute’s report also highlighted that the Scottish Government’s claim that the majority of income tax payers in Scotland will pay less than in the rest of the UK is based on earnings forecasts and is ‘subject to change and error’.
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majority → highlight → change
Scottish Conservative finance and social security spokesman Craig Hoy: ‘Scots are being forced to pay the highest taxes in the UK to try and plug the £5 billion blackhole John Swinney is responsible for creating in Scotland’s finances.
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Swinney → force → finances
‘That is why this timely report cannot be dismissed by nationalist ministers who remain wedded to their freebie culture.
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who → dismiss → culture
‘There must always be a safety net to ensure policies support those most in need.
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policies → ensure → need
However, many Scots feel they are already paying more but getting less in return.
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they → feel → return
The onus is on John Swinney to ensure his flagship policies are delivering value for taxpayers, rather than spiralling out of control.’
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policies → ensure → control
A Scottish Government spokesman said: ‘The Scottish Government’s defining mission is to eradicate child poverty and Ministers are unwavering in that commitment.
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Ministers → say → commitment
‘Ministers welcome these reports, which make clear that both universal and targeted approaches are important to eradicating child poverty and that our support is reaching low-income families.
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support → welcome → families
‘Meanwhile, we are taking decisive action, including by delivering a national breakfast club offer from August 2027, investing over £40 million to help improve access to transport and skills for parents, and increasing our Scottish Child Payment to £40 for children under the age of 1 during 2027-28.
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we → take → 2027
‘Our policies are estimated to keep 100,000 children out of relative poverty this year and we will continue to go further, including by transforming our childcare offer for families.
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we → estimate → families
It is now time for the UK Government to heed our calls, match the Scottish Child Payment, while removing the benefit cap and freeze to local housing allowance, both of which are driving poverty.’
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both → heed → poverty
The Aporia
