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Scotland's Minister for
Children and Early Years, Adam Ingram has called upon the UK Government to
do more to help families who are struggling with poverty.
Mr Ingram raised his concerns with Beverley Hughes, Minister for Children,
Schools and Families, at a meeting in London yesterday.
He said improvements were needed to the UK benefits and tax credits system
to give parents more help with the costs of childcare. He also discussed the
need for further support for kinship carers.
Mr Ingram has proposed that the two systems which support parents with
childcare costs - the childcare element of working tax credit and childcare
vouchers - could be merged to create one straightforward, progressive and
more accessible system.
This would help families facing hardship and support more parents on low
incomes to return to work or training.
Mr Ingram said:
"I'm pleased that HM Treasury is reviewing the tax credits system because
the current scheme is far too complex and bureaucratic. We need a simplified
approach that will make the process easier for parents and improve uptake,
which is particularly low for the hard-pressed families who need help most.
"I am particularly concerned that, because under this system childcare
support is limited to two children, the needs of larger families are not
being met. They are the very families who will be facing financial
difficulties in this current climate.
"I am also concerned that the system does not recognise the additional
childcare barriers faced by parents with disabled children, which can make
it difficult for them to return to work.
"It is frustrating that the Scottish Government does not yet have the powers
to address these matters alone, therefore it is vital that these concerns
are addressed at a UK level so that appropriate action can be taken."
The two Ministers found common ground on the need for further financial
support for all kinship carers - the relatives, often grandparents, who are
looking after children.
Mr Ingram said:
"In Scotland, under our historic Concordat with local authorities, we have a
commitment to provide allowances to all kinship carers. For the first time
we have made financial resources available for the carers of more than 2,000
looked after children to receive a weekly allowance.
"However, the UK benefits system includes clear disadvantages for kinship
carers. I have agreed with Ms Hughes that Scottish Government and Whitehall
officials will work together to resolve these issues."
Support for childcare costs
For many parents on low and middle incomes, it is almost impossible to
determine which of the two schemes available to help with childcare is
better suited to their circumstances. Both the childcare element of working
tax credit and childcare vouchers offer help, but under both schemes the
amount of support can be very different depending on individual
circumstances.
Tax credits are paid direct to parents while vouchers can only be used for
registered childcare and the two systems can have different levels of tax
relief. Additionally, childcare vouchers reduce national insurance
contributions which can have knock-on effects for the eligibility of other
benefits.
Support for kinship carers
The Scottish Government has made financial resources available to kinship
carers to receive a weekly allowance at the same rate as local authorities
pay foster carers. Each local authority will determine how to prioritise and
allocate funds from within the overall settlement to meet their commitments
locally. We aim to provide further support by working with the UK government
to improve access to benefits, developing our early years framework, and
ensuring specialist information is available through the Citizens Advice
Bureaux.
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