New child benefit available to low income families in Scotland

What is the Scottish Child Payment?

The Scottish Child Payment is a benefit being rolled out by the Scottish Government as part of their Tackling Child Poverty delivery plan, an initiative which runs from 2018 to 2022 and seeks to eradicate child poverty in Scotland

The payment will be made to low income families with children under six in order to help them with the cost of raising children.

What do you get with the Scottish Child Payment?

Under the Scottish Child Payment, families with children under six can apply for a payment of £10 per child, per week. Taken over the course of a year, this will amount to £520 worth of extra support for each child within a family

There is no limit to the number of children who will be supported by the Scottish Child Payment, so a family with four children will receive £40 per week, £10 for each child. The payment will be paid into the relevant bank account every four weeks.

While the Scottish Child Payment will initially be £10 per week for each child, the Scottish Government have committed to considering the impact of inflation, and will explore the possibility of increasing the payment in line with it.

Who is eligible for the Scottish Child Payment?

The Scottish Child Payment is targeted at low income families raising young children in Scotland. To be eligible for the Scottish Child Payment, you must:

• Live in Scotland
• Have young children under six years old
• Qualify as a low-income family

In this instance, ‘low income’ is defined as receiving any of the following qualifying benefits:

• Child Tax Credit
• Universal Credit
• Income Support
• Pension Credit
• Working Tax Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)

If you meet the above criteria, you will receive a sum of money for every child under six, and as previously stated, there is no limit to the number of children under six who you can receive support for.

Who will benefit from the Scottish Child Payment?

The new benefit could be a huge help to thousands of families throughout Scotland, with the Scottish Fiscal Commission estimating that 194,000 children will qualify for the payment.

The projected number of children eligible for the Scottish Child Payment has risen considerably since the Scottish Government first forecast in June last year.

Unsurprisingly, the coronavirus pandemic has had an impact on the number of eligible families. There are 24,000 more children expected to qualify for the Scottish Child Payment now, an increase of 14% on the projected numbers in 2019.

While the Scottish Child Payment will only initially be available to low income families with children under six, the benefit will eventually be extended to families with children under 16, supporting thousands more struggling families throughout the country.

When can you apply for the Scottish Child Payment?

Applications for the Scottish Child Payment will open up in November 2020, with Social Security Scotland expecting to process thousands of application forms ahead of the launch.

Because of the projected volume of applications that will need to be processed, there is a gap of a few months between applications opening and the scheme being launched. The first payment of the Scottish Child Payment isn’t expected until February 2021.

That’s actually two months behind the original schedule. The scheme was initially supposed to launch at the end of this year, but the chaos caused by the ongoing coronavirus pandemic has resulted in the timetable being extended.

The Scottish Government is committed to rolling out the Scottish Child Payment to low income families with children under 16 by the end of 2022.

How do I get extra support with my finances?

Times are tough for everyone right now, but if you were struggling with your finances before the pandemic hit, it may have made your money troubles worse.

Carrington Dean specialises in helping people put their money troubles behind them and can help you too.

As Scotland’s debt specialists, the team provides financial guidance and support to thousands of people every day. Their team of expert advisers don’t judge – they listen, learn about you and your circumstances, and point you in the right direction financially.

If you could use some support managing your finances, getting control of your debts, or just want to know what your options are, talk to Carrington Dean for free on 0808 253 1164.