Charities have said this would see thousands of children left in poverty

Anti-poverty campaigners in Scotland have hit out at First Minister John Swinney after the SNP leader suggested Scotland’s Child Payment had reached its “limit”. 

Speaking in a sit-down interview with the Herald newspaper at his official residence, Swinney said he was “glad” the Scottish Child Payment had been increased. 

The policy has been described as “life-changing”, but charities have consistent warned that unless the payment is increased - to £40 a week - any progress made in tackling child poverty will stall. 

The Institute for Public Policy Research (IPPR) think-tank claim this increase could lift an extra 20,000 Scottish children out of poverty. 

Despite this, the first minister seemed reluctant to increase the payment further. 

Swinney told the Herald: “I’ve discussed this with child poverty campaigners, all of whom I respect, there is a fine balance that you have to strike about the level at which a social security benefit is set in relation to the incentives to enter employment.

“And I think we are at the limits of that just now. I think we reduce the incentive to actually enter the labour market.

“You have to get the balance right and my judgement – and I’ve been very open about this – is that we are at the limits just now but obviously I will continue to engage on that question.”

Those campaigning for an increase to £40 per week have hit back, warning of the potential drawbacks of failing to continue increasing the payment. 

John Dickie, director of the Child Poverty Action Group in Scotland, told the newspaper: “The Scottish Government’s own analysis shows that there is no evidence the Scottish Child Payment is negatively affecting labour market participation at any scale, and we are aware of no evidence that increasing it would have any significant impact on work incentives.

“It would certainly have no impact that would come anywhere close to outweighing the well evidenced benefits providing additional cash support to families has for children’s outcomes and for the long term ability to contribute to the Scottish economy.”

Jamie Livingstone, head of Oxfam Scotland, also said to the Herald: “The vast majority of parents on the lowest incomes aren’t weighing up work incentives, they’re weighing up whether they can afford to put food on the table. Quality jobs can help lift families out of hardship, but if the first minister is serious about ending child poverty, putting more money in parents’ pockets by bolstering currently inadequate social security is a must. 

“He should use next week’s Programme for Government to quickly raise the Scottish Child Payment to £40; no ifs, no buts. We need to invest in the range of actions needed to end child poverty for good using fairer taxes on wealth and income at both UK and Scottish level. Poverty is a political choice; so is whether we fully fund the fight against it."