Cost of living support for individuals and families on low incomes in six local council areas

Young family worrying about bill
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The Scottish Government has announced it will invest nearly £2.2 million during the 2025/26 financial year to enable the Wise Group to provide wrap-around support to individuals and families on low incomes in six local authority areas. The funding aims to help households in Glasgow, Inverclyde, North Lanarkshire, South Lanarkshire, Renfrewshire and Scottish Borders.

The investment, from the Tackling Child Poverty Fund, was announced by Social Justice Secretary Shirley-Anne Somerville during a Scottish Parliament debate on supporting households with cost of living pressures and rising energy bills.

It will allow the Wise Group to continue with work which has so far helped 3,200 households, enabling people to find work, increase their skills and improve their financial situation. The wrap-around nature of the support means mentors from the Wise Group are also able to support people to improve their mental health and wellbeing.

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Ms Somerville said: “We know people continue to face pressures with the cost of living and the recent announcement that energy bills are set to rise again this month will only add to those pressures.

“The Wise Group work we are funding, offers support not just with an immediate crisis, but aims to help people make long-term improvements to their financial stability, helping them to access help with issues such as childcare, training and finding sustainable work.

“Eradicating child poverty is the Scottish Government’s overriding mission. This year’s budget commits more than £3 billion to a range of actions to tackle poverty and the cost of living. However our efforts are undermined by the social security policies of the UK Government, not least the two-child cap which prevents parents from claiming universal credit for more than two children.

“That is why we will develop the systems necessary to effectively scrap the impact of the two-child cap in 2026. The Child Poverty Action Group estimates that scrapping the cap in Scotland could lift 15,000 children out of poverty.”

Sean Duffy, Wise Group Chief Executive said: "This investment is a vital opportunity to rethink how we deliver services, strengthen local partnerships, and take a preventative, ‘invest to save’ approach that drives lasting change in tackling poverty."

The Scottish Budget for 2025/26 contains a wide range of measures to help individuals and families with the cost of living and to help eradicate child poverty.

These include:

  • more than £3 billion to a range of actions to tackle poverty and the cost of living

  • more than £6.9 billion for benefits expenditure - almost £1.3 billion more than the UK Government gives to the Scottish Government for social security

  • £768 million to boost delivery through the affordable housing supply programme and support the delivery of at least 8,000 affordable homes

  • more than £2.6 billion to support public transport and to make our transport system available, affordable and accessible to all, making it easier for parents to access employment, training and skills opportunities and the services that they need to navigate their way out of poverty

  • around £40 million to expand meals to children in receipt of Scottish Child Payment in primaries 6 and 7, and to trial an expansion for those in S1 to S3 in eight local authority areas

The Scottish Government will also reinstate a universal Pension Age Winter Heating Payment from winter 2025/26, worth a minimum of £100 for every Scottish pensioner household. Those in receipt of a qualifying means-tested benefit such as Pension Credit will receive £200 or £300 - depending on their age and household living arrangements.