2. To ask the Scottish Government for what reason the Scottish welfare fund is reportedly being underutilised. (S5T-02357)

The figures that we published today show that crisis grants increased by 45 per cent during April and July, with expenditure increasing by 62 per cent. That shows that the continuing combination of United Kingdom welfare cuts alongside the economic impact of Covid-19 unfortunately means that the Scottish welfare fund is far from being underutilised.

As part of the £350 million community funding that was announced in March, we more than doubled the fund in anticipation that more people would need that additional financial support, not just during lockdown but throughout this year.

As the member knows, the fund is delivered by local authorities, and we continue to work with them to increase awareness of the fund. I am considering further ways in which we can ensure that people know about the fund and that as many people as possible who need that support are able to access it.

The impact of Covid-19 on people with low incomes is stark, and many desperately need assistance to meet even their basic living costs. However, the data that the Poverty and Inequality Commission has published show that throughout April, May and June this year, the Scottish welfare fund was underused. Only £8.6 million was spent across those months, which is more than £1 million less than in the same period last year. That spend is only 15 per cent of the budget available this year, whereas at the same point last year 25 per cent of the budget had been spent. The commission has subsequently stated:

“in the 3 months at the epi-centre of the biggest public health crisis in over a century, it does not seem right that the money allocated to the Scottish Welfare Fund is not being used to maximum benefit.”

It is clear that the Scottish welfare fund is not being accessed by all those who need it. When the Scottish Government is considering how to increase access, will it commit to raising awareness of the fund and having a campaign to highlight how those in need can access it?

The figures that have come out over the past couple of months are for crisis grants and community care grants. Local authorities spent 62 per cent more on crisis grants between April and July than they did in the same period last year, which shows that local authorities are responding significantly to the increased demand for support from people facing financial crisis.

Demand for community care grants, which are provided to support people to live independently, is lower than last year. Given that a community care grant is typically six times the value of a crisis grant, it is perhaps not surprising that overall expenditure has been reduced. Some local authorities have reported that the reduction in demand for community care grants might be because there has been a reduction in new tenancies and house moves.

The Scottish Government is keeping a very close eye on the matter. As I said in my first answer, the Scottish welfare fund is delivered by local authorities. However, I am giving close consideration to what else needs to be done at a national level to ensure that those who require the support of crisis grants at this time are aware of their existence. I will work with local authorities to ensure that we do just that.

Although the forthcoming Scottish child payment is welcome, we know that it will not be paid for another six months. Families across Scotland are struggling due to the effects of the pandemic, and they need help now. We know that there is money available in the welfare fund. The Poverty and Inequality Commission believes that a cash-first approach is the most dignified way of helping those in need. Will the Scottish Government therefore use the fund to create a one-off grant to eligible families, equivalent to what they would have received as a Scottish child payment, to see them through until that payment is available in February?

I am afraid that it is not as simple as Ms Grant makes out. To set up a new fund that would replicate the Scottish child payment would require the data and processes to be available to make those payments. That is why we are working as fast as we can to deliver the Scottish child payment, which, despite all the difficulties that we have had because of Covid and lockdown, is being moved by only two months from our original timeframe. That demonstrates this Government’s commitment to the delivery of the payment.

That is by no means the only thing that the Government has been doing to ensure that low-income families are supported. Much of it was set out by my colleague Aileen Campbell in her speech to Parliament last week, when she reported on the tackling child poverty delivery plan. We are implementing a number of different measures to ensure that we support families at this time, very much on the basis of a cash-first process.

Given that the Scottish welfare fund is delivered by local authorities, will the Cabinet secretary outline what role local authorities have in ensuring that citizens are aware of the fund and how to access it?

Mr Arthur is quite right to point out that the welfare fund is administered by local authorities. There is national statutory guidance, but awards are made at local authorities’ discretion.

I am aware that the Poverty and Inequality Commission raised concerns that there are differences in the ways in which local authorities deliver the fund, make people aware of it and support people to access it. That is done through local publicity and local referrals. If there is something that can be done at a national level, I am keen to do that, but I am also keen to work with local authorities to make sure that they are delivering on their obligations, as I am sure that they would like to do.

I very much welcome the Scottish Government’s early action in March to double the Scottish welfare fund, but does the Cabinet secretary agree that the real issue here is that the increased demand during the pandemic is further evidence that UK welfare benefits are simply not sufficient for people to make ends meet?

Mr Brown makes a very important point; the crisis grants are there for assistance in times of crisis. It would be lovely if we lived in a time when people were not forced to get to that crisis point in the first place, because the welfare system at the United Kingdom level—from where the support for low income largely comes—was sufficient for them to deliver on their obligations to feed, clothe and house themselves and their families. Unfortunately, that is not the case, but we will continue to press the UK Government to stop people falling into crisis in the first place.

An important part of that is the continuation of the furlough scheme; if the UK Government decides to end it, I fear that that will lead people into requiring the Scottish welfare fund and further crisis grants. That cannot be the best way to deal with people at difficult times in their lives during the pandemic.

Women in particular have been disproportionately affected by the Covid-19 pandemic. Will the Scottish Government consider utilising underused funds to prioritise the needs of lone-parent households or those with childcare and care responsibilities? A practical suggestion might be supporting access to services that are currently available only online, because face-to-face services have not yet resumed.

Across Government, we have undertaken urgent work to ensure that we deliver support to those who have been digitally disadvantaged during the pandemic. I will take recommendations and suggestions from any party and I welcome Rachael Hamilton to her role as the new spokesperson on the issue.

I will give a suggestion back. One of the biggest reasons why people are falling into poverty during Covid-19 is the benefit cap. If the UK Government reduced or took away the benefit cap, people would not be falling into poverty in the first place and would therefore not need the crisis grant.