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Scottish Disability Equality Forum along with thistle logo in purple and green

 16/07/08 - Call for improvements to benefits system

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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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