Scottish Government confirms commitment to fund new Pandemic Support Payment for households receiving council tax reduction

Finance Minister also confirms that the Budget Bill currently making progress through Holyrood will include a new £100 payment for families of children in receipt of free school meals

The Scottish Government has confirmed its commitment to fund a new Pandemic Support Payment for households receiving council tax reduction.

Ahead of today's Stage 3 debate on the Scottish Budget Bill, the Scottish Finance Minister Kate Forbes said that the government has reached agreement with the Scottish Green Party so that the Bill can clear the final stages of its passage through Parliament.

In addition to confirming measures already announced in the Scottish Budget as introduced in January 2021, the Minister said yesterday in a letter to the Scottish Greens that -

‘Following our discussion we have agreed that the £100 million I announced in February will be used to provide a Pandemic Support Payment to support people, in particular families, on low incomes. The Pandemic Support Payment will be made to two distinct groups.

Firstly to make payments of £130 to the approximately 500,000 households in receipt of Council Tax Reduction. Secondly, we will make two payments of £100 each to the families of children in receipt of free school meals. We anticipate that this will benefit up to 170,000 families. Families who are in receipt of both Council Tax Reduction and Free School Meals will be eligible to receive both payments, worth a total of £330.’

NB - Ms Forbes also confirmed that the government is proposing to make just under £50 million available to support the phased roll-out of free school meals in Scotland in 2021/2022.

For more information, see Budget deal secured from gov.scot

Update (30 September 2021) - the First Minister Nicola Sturgeon has advised MSPs in Holyrood that the Pandemic Support Payment will be issued by the end of October 2021.