A Budget to tackle child poverty

16 Jan 2026 10:48 AM

Supporting family finances and employment opportunities.

Social Justice Secretary Shirley-Anne Somerville has said the draft Scottish Budget 2026-27 is a “landmark intervention” in the Scottish Government’s drive to tackle the root causes of child poverty and increase living standards.   

Around £8 billion has been earmarked for the social justice portfolio, boosting support for vulnerable people and low-income families. This includes plans to:   

• introduce a new premium element of the Scottish Child Payment in 2027-28, raising weekly payments for eligible parents of children under the age of one to £40 per child, benefitting around 12,000 children  
• create a new £50 million package to boost whole family support. This will further enhance existing support and will include help with transport, skills, and commits £20 million for third sector partners to deliver the support that people need in their communities
• increase the Tackling Child Poverty Fund from £12.5 million to £61.5 million in 2026-27 
• invest £7.2 billion in social security, supporting disabled people, unpaid carers, those on low incomes and others, while also providing help with energy bills

Social Justice Secretary Shirley-Anne Somerville met parents in receipt of any of the Five Family Payments, including the Scottish Child Payment, yesterday (Thursday 15 January) at Pilton Youth and Children’s Project in Edinburgh, and said: 

"Eradicating child poverty is this government’s driving mission - no child should have their prospects hindered by circumstances beyond their control.  

"This Budget is a landmark intervention in our work to tackle the root causes of poverty and reduce the pressure on household finances – from increased support for Scotland's newest parents, to new initiatives to help increase household incomes and ensure families receive the right support at the right time.  

“With more than £330 million committed across three years to our Tackling Child Poverty Fund and to investment in Whole Family Support, we are laying the groundwork to drive continued progress in the year ahead, breaking the cycle of poverty in Scotland for good.” 

Background 

Subject to consultation and parliamentary approval the Scottish Government intends for the Scottish Child Payment premium to commence in 2027-28. The date that first payments will be made will be announced in due course.  

The Scottish Child Payment was introduced in 2021 and began as a £10 per child, per week payment. It has increased by more than 180% since then. The Scottish Child Payment for 2026-27 will increase to £28.20 per child per week, in line with inflation. 

Further details about the measures in the Whole Family Support package, alongside the Tackling Child Poverty Fund, will be set out in the Tackling Child Poverty Delivery Plan which will publish by the end of March. 

The Scottish Fiscal Commission forecasted that the Scottish Government would have spent £141m on the Two Child Limit Payment in 2026-27 – against previous estimates of £155 million. After accounting for additional demand for devolved benefits due to the ending of the two-child limit, the Scottish Fiscal Commission estimates £126 million will be available for reallocation in 2026-27. 

The draft Scottish Budget 2026-27 delivers the First Minister’s commitment to reallocate the resource allocated to the Two Child Limit Payment to anti-poverty measures. This includes: 

• £14 million to meet additional demand for devolved benefits as a result of removing the Two Child Limit, including a further £8 million to help mitigate the impact of the Benefit Cap and £7 million for the Five Family Payments, including Scottish Child Payment to support newly eligible families. 
• Investing more than £111 million in the Tackling Child Poverty Fund and investment in Whole Family Support. 
• Investing a further £21 million to meet the cost of increasing the Scottish Child Payment in 2026-27 – providing the families of around 330,000 children with £28.20 per child per week. 

The Scottish Spending Review, Chapter 6, confirms multi-year budget allocations for Whole Family Support and the Tackling Child Poverty Fund: Scottish Spending Review 2026 - gov.scot