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Daily Record
Daily Record
Politics
Chris McCall

Rising number of Scots repeatedly applying for crisis loans, warns Labour

A rising number of Scots are living in a state of permanent financial distress due to the pandemic and cuts to Universal Credit, Labour has warned.

Three out of four crisis grants from the Scottish Welfare Fund in April and June were given to people who have applied in the past, an all time high.

Repeat applicants made up 63 per cent of the total awarded during the same period last year and just 17 per cent in 2013.

Most recent figures show a third of applications to the fund were rejected, with applicants facing a postcode lottery due to huge variation in approval rates between local authorities.

Labour said the figures highlighted the need for SNP ministers to deliver a real Minimum Income Guarantee instead of a “sticking plaster” approach to tackling poverty.

Pam Duncan-Glancy, the party's social security spokeswoman, said: “More and more people are living in a state of constant crisis, relying on piecemeal grants to make ends meet.

“Crisis grants are an important lifeline – but they aren’t a substitute for a real safety net. Things are only set to get worse as bills soar and the Tories’ shameful cut to Universal Credit hits.

“We need more than sticking plasters to tackle poverty in Scotland."

A Scottish Government spokesman said: “We have taken unprecedented action to support people during the pandemic.

"The Scottish Welfare Fund provides a vital safety net for households facing an unexpected financial crisis.

"That is why we have committed to maintaining the budget for the fund at £41 million and to undertaking a full independent review to ensure that it works as efficiently as possible across the whole country.

“People on low incomes, children and people at risk of homelessness will need more support this winter against a backdrop of rising living and fuel costs.

"That is why today we have announced a new Winter Support Fund which includes £10 million to help people who are struggling to pay fuel bills, £25 million flexible funding to help local authorities support wellbeing and respond to financial insecurity based on local needs, and £6 million for third sector partners to support low income families.

“Everyone in Scotland deserves to live healthy, financially secure, fulfilling lives and a Minimum Income Guarantee will be an important step towards achieving that."

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