Landmark new report - led by leading charities - sets out a transformative vision
A ‘minimum income guarantee’ will provide a dignified quality of life, deliver financial security, and unlock opportunities for everyone in Scotland, according to a major new independent report for the Scottish Government.
An expert group set up by ministers to explore the proposal has produced a roadmap to a “fundamental change to the social contract” in Scotland, starting with a pilot following next year’s election.
A minimum income guarantee establishes an income level below which nobody is allowed to fall, through reform to social security, work and services.
Recommending a three-stage approach to achieving this, the report outlines a series of devolved measures which can be taken by the next Scottish Government between 2026 and 2031 to strengthen the existing safety net.
This includes action in the near term, a pilot project to test and learn from, as well as doubling the Scottish Child Payment to £55 per week by 2031 and an effective end to punitive sanctions, limits and freezes in the welfare system – moving instead to a system based on a guarantee of support.
The proposals will deliver sustainable economic growth, according to the report authors, and bring about transformative reductions in poverty and inequality.
This would reduce demands on public services and the cost of dealing with the social and health problems caused by poverty and inequality.
The expert group was established in 2021 with representatives from 16 leading charities and anti-poverty organisations, while a separate strategy group has been chaired by Social Justice Secretary Shirley-Anne Somerville with members made up from MSPs in all five main parties in Holyrood.
In the following parliament, the experts have called for an interim minimum income guarantee payment in Scotland to be established by 2036, set at the level of the relative poverty line, initially on a time-limited basis. This would effectively end poverty for those in receipt.
Its full implementation should then be progressed in the following years as the economy strengthens, using greater powers and flexibilities for Holyrood or through action from the UK Government, so that a minimum income guarantee is a basic tenet of public services.
Over time this would replace the much-maligned UK-wide Universal Credit system.
Chair of the minimum income guarantee expert group, Russell Gunson from The Robertson Trust, said: “If we’ve learned one thing in recent years it’s that we can all need a helping hand from time to time. A minimum income guarantee could be transformative, putting in place a universal guarantee that’s there for everyone in Scotland.
“Given the levels of poverty and inequality we see, we must act urgently. With technological change and an ageing population, we need to build security for all to make sure we can take the economic opportunities in front of Scotland. A minimum income guarantee could future-proof Scotland.
“With greater financial security, we can empower our people to live well, meet their potential and build a better future for themselves, for their families and for the country as a whole.”
On its affordability, Gunson, pictured above, added: “The first steps we set out over the next five years are affordable in the current context, and doable within existing powers. We can’t wait – and we don’t need to wait – to begin to make the changes outlined in this report.
“We know poverty, inequality, and insecurity costs us dearly in financial terms and in lost potential. If things don’t change, at scale, we will simply deliver the status quo, with the deepening poverty, stark inequalities and rising mistrust and disaffection that comes with that.
“Ultimately, ending poverty and inequality in our society requires investment. Trust in politics is low at the moment because the scale of action required to build security for everyone in society is underplayed.
“A minimum income guarantee is a big idea that will build that security.”
Satwat Rehman, one of the members of the group and chief executive of One Parent Families Scotland, said a minimum income guarantee would be “lifechanging for the families we support”.
She added:“Single parents – 90% of whom are women – are among the most economically vulnerable in our society, with 41% living in poverty.
“Too many single parents are trapped in low-paid, part-time, insecure work while navigating complex and inadequate support systems that fail to reflect the true cost of raising a family alone. “A minimum income guarantee would provide a lifeline, ensuring no single-parent household falls below a dignified minimum income – whether in or out of work, studying or training – and ensure families and children thrive and not just survive.”
