Social security benefits in Scotland will be increased to 10.1% in line with inflation in a move welcomed by charities.
Deputy First Minister John Swinney set out the 2023/24 budget in Holyrood on Thursday.
However, Mr Swinney has been told that more must be done to help families experiencing poverty.
The Scottish Child Payment, which was increased to £25 in November, will be maintained – despite campaigners urging Mr Swinney, who has stepped in as Finance Secretary Kate Forbes is on maternity leave, to increase the benefit alongside inflation.
In his budget announcement, Mr Swinney said the benefit had already increased by 150% since it was first introduced in April.
And he said “all other social security benefits under the control of the Scottish Government will be increased by the rate of inflation in September of 10.1%”.
He said the Scottish Government had used its powers to create “a social security system based on the values of dignity, compassion and respect”.
Chancellor Jeremy Hunt confirmed in his autumn budget that benefits paid by the UK Government would also rise by the same figure.
Welcoming the uprated benefits, John Dickie, director of the Child Poverty Action Group (CPAG) in Scotland, said: “With families already being pushed over the brink by the cost-of-living crisis, there is no question that more will be needed to protect children over the coming years and ensure statutory child poverty targets are met.
“It’s right that Scottish benefits are being uprated in line with inflation, but whilst the Scottish Child Payment has been increased significantly in the last year, it’s disappointing the £25 payment won’t hold its real-terms value next year.”
Jamie Livingstone, head of Oxfam Scotland, said the benefits uplift will offer “some comfort” to those experiencing poverty.
We appreciate that the Scottish Government is operating within tight budget constraints in a difficult economic period, however it is important to remember that the government still has a duty to meet statutory child poverty targets— Satwat Rehman
But he said: “But unpaid carers worrying about how to keep their loved ones warm and single parents unable to buy enough food may, rightly, be left asking whether the level of support coming down the line can compete with the scale of their financial challenges.
“While recent increases in the Scottish Child Payment are welcome, merely maintaining it at £25 per week will mean that inflation will reduce its value in real terms.”
One Parent Families Scotland also welcomed the commitment but said the Scottish Government must do more to support low-income single parent families.
The organisation’s chief executive Satwat Rehman said increasing benefits in line with inflation was “the right thing to do” and will make “a real difference for low-income families who are being snowed under by rising costs”.
But she added: “However there is more the government could – and must – do to support those who are struggling most.”
Ms Rehman said: “We appreciate that the Scottish Government is operating within tight budget constraints in a difficult economic period, however it is important to remember that the government still has a duty to meet statutory child poverty targets.
“We believe that this won’t be possible until resources are directed towards those facing disproportionate levels of poverty.”
