Report calls for minimum income guarantee pilot in Scotland

A minimum income guarantee could be piloted in Scotland following next year's Holyrood elections.

The policy would establish an income level below which nobody is allowed to fall, via reform to social security, work and services.

A new report for the Scottish government said the guarantee would help provide a dignified quality of life, deliver financial security, and unlock opportunities for everyone in the country.

The group of charities, campaigners and academics also recommended doubling the Scottish child payment to £55 per week by 2031 while also effectively ending sanctions in the welfare system.

An interim minimum income payment could be established by 2036, in line with the relative poverty level, according to the group - commissioned by ministers and chaired by Russell Gunson from the Robertson Trust grant-maker.

Social Justice Secretary Shirley-Anne Somerville said the Scottish government would consider the group's report and respond in due course.

Some of the group's welfare changes would cost £671m per year by 2030/31, in today's prices.

However the group said these would require just over £300m of additional spending if the UK government scraps the two-child limit and ends the five-week wait for universal credit.

The Scottish Conservatives described the policy as "bizarre and unaffordable" due to the costs.

But Mr Gunson said the guarantee could be transformative if it was implemented.

He added: "Given the levels of poverty and inequality we see, we must act urgently.

"With technological change and an ageing population, we need to build security for all to make sure we can take the economic opportunities in front of Scotland.

"A minimum income guarantee could future-proof Scotland."

He stated that the first step in the report were affordable with immediate effect.

Conservative finance spokesman Craig Hoy said the proposal would see Scottish workers saddling the cost.

He said: "The SNP have made no serious attempt to rein in wasteful public spending and a soaring welfare bill.

"Now this report shows that a minimum income guarantee would cost billions - when Scottish taxpayers are already footing the bill for spending that is simply unsustainable and unaffordable."

Shirley-Anne Somerville said the Scottish government is already trying to take action in a number of areas highlighted by the group's report, citing plans to end the universal credit two-child limit next year.

However she added there would be no change to tax policy to help finance any guarantee.

She stated: "The Scottish government is of course committed to ensuring that finances remain on a sustainable trajectory.

"We will continue to take forward our programme of work for doing this, which will be updated in the next Medium-Term Financial Strategy to be published later this month, alongside our fiscal sustainability delivery plan.

"We have no plans to change tax policy in Scotland to finance a minimum income guarantee."