Two-child limit mitigation funding for 2025-26 reinvested to tackle child poverty.
More support will be available to families and households to help cover the cost of life’s essentials and to deal with emergencies.
First Minister John Swinney has confirmed that £10 million originally earmarked in 2025-26 to support the two-child limit mitigation payment in Scotland will be reallocated to tackling child poverty.
The majority of the funding will be split between charities and government programmes that provide emergency financial support, including:
- £5.5 million additional funding for the Scottish Welfare Fund. The fund is administered by local authorities and provides people on low incomes with emergency grants if they are facing crisis, homelessness or other housing or caring challenges
- An additional £0.55 million for Aberlour Children’s Charity and £1.5 million for Children First to provide extra emergency support to families in crisis
- £1.5 million for the Corra Foundation to distribute additional emergency funds via local organisations
A further £1 million will support various strands of the Scottish Government’s national Child Poverty Delivery Plan 2022-2026, including parental employability schemes, funding to support women back into the workforce, additional investment into the King’s Trust’s NHS employability programmes, and targeted support for households experiencing homelessness.
Background
The Scottish Welfare Fund is made up of two different grants (Crisis Grant and Community Care Grant) which can be applied for through your local authority and do not need to be paid back. To apply for a grant from the Scottish Welfare Fund you must be 16 or older and on a low income or getting certain benefits.
Aberlour Children’s Charity will receive £550,000 in 2025/26 towards their Urgent Assistance Fund, which provides emergency cash grants to help families who are struggling to provide essentials such as food, heating, beds and clothing for their children. Since April 2021, the fund has supported 28,455 people.
Children First will receive £1.5 million in 2025/26 to provide funds to families in crisis and to support Children First’s helpline for people with money and financial wellbeing issues.
The Corra Foundation will receive £1.5 million to provide emergency support to households via a new 2025-2026 iteration of their Household Hardship Fund (HHF). This will pass on funding to locally led organisations with established connections with households on low incomes facing hardship and poverty. The previous 2023 HHF, supported by the Scottish Government and other funders, was estimated to reach over 17,000 people.
The Scottish Government’s tackling child poverty delivery plan for 2022-26, ‘Best Start, Bright Futures’, sets out the action being taken across a range of policy areas to reduce child poverty, provide immediate support families and scale up employment support for parents. Projects supported by just under an additional £1 million investment include Local Employability Partnerships, Ending Homelessness Together, Women Returners support and the King’s Trust’s NHS employability programmes.