Two-child Benefit Cap to be Scrapped in Scotland under SNP's Budget Plans

By Evans Momodu
3 minute read


Scotland's Finance Secretary, Shona Robison, described her proposals for the 2025-26 draft budget as "a budget filled with hope for Scotland's future" during its unveiling at Holyrood.

She emphasized investments in public services, poverty reduction, and addressing the climate emergency, calling it a people-focused approach.

The draft budget includes measures such as ending the UK's two-child benefit cap, which is expected to lift 15,000 Scottish children out of poverty.

A record £21 billion investment is earmarked for the NHS, including £200 million to reduce waiting times and £2 billion for frontline NHS boards. Local authority funding will increase by £1 billion, replacing the SNP’s previous council tax freeze policy.

Significant investments are planned to meet housing, climate, and social goals. Over £768 million will be allocated for affordable housing, with an additional £300 million in ScotWind revenues going toward job creation and climate measures.

The government plans to tackle homelessness, expand free school meals, and maintain education funding, including a £120 million initiative to close the poverty-related attainment gap. Social security will see an £800 million boost, alongside investments in disability equality and anti-poverty programs.

Environmental funding includes £4.9 billion for climate and nature crises, £300 million for heating and insulation upgrades, and £190 million to improve bus services and expand active travel options.

The government also plans to invest in maintaining rail infrastructure and improving ferry services. Rural communities will benefit from £660 million allocated to support farming and the wider economy.

The draft budget proposes no changes to income tax rates until 2026. Universal winter fuel payments for pensioners will also be reinstated, offering tiered payments based on age and benefit eligibility.

The total settlement of £47.7 billion for 2025-26 reflects an additional £3.4 billion provided by the UK government. However, it represents a decrease compared to the £59.7 billion budget of 2023-24.

With limited borrowing powers, the SNP's minority government will require cross-party support to pass the draft budget in February.
Source: Sky news