Latest news with #minimumincome
Telegraph
18-06-2025
- Business
- Telegraph
SNP considers handing Scots thousands in benefits to guarantee minimum income
SNP ministers are considering 'guaranteeing' Scots an income of up to £28,000 each by handing out billions of pounds more in benefits. An expert group commissioned by the Scottish Government has recommended establishing a minimum income guarantee, below which nobody is allowed to fall. The SNP was told the cap should be set at £11,500 per year for a single adult, £20,000 for a couple and £28,000 for a couple with a child or a single parent with two children. Claimants would receive less if they had another source of income, such as a salary, and the payment would 'gently' taper off as earnings increased. Those earning higher amounts would receive nothing. It would be paid out via a variety of sources, including social security benefits and cutting the cost of services in kind, like childcare and public transport. The report said the payout could also be subjected to a 12-month time limit, after which claimants would revert to 'strengthened' benefits provided under the current welfare system. A Scottish Government analysis said the policy would cost £8.1 billion a year, falling to £5.9 billion if tapering was introduced. The expert group recommended that the huge cost be funded through income and council tax hikes on better-off Scots. It argued that £500 million could be generated by carrying out a council tax revaluation and increasing the amount paid in the higher bands. In addition, it recommended freezing the salary thresholds for Scotland's income tax bands, a stealth tax that means workers would pay more when they received pay rises. 'Fundamental change to the social contract' However, the move was called 'bizarre and unaffordable' by Scottish Tories. Around 1.5 million Scots earning at least £30,318 already pay more income tax than if they lived elsewhere in the UK. There are six tax bands in Scotland, double the total south of the border, and the top band is 3p higher. The group of charities, campaigners and academics said there should be a pilot of the policy following next year's Holyrood election, with an interim minimum income guarantee established by 2036. They said the plan, which the SNP pledged to examine when Nicola Sturgeon was First Minister, would be a 'fundamental change to the social contract'. 'Bizarre and unaffordable' Craig Hoy, the Scottish Tories' Shadow Finance Secretary, said SNP ministers should 'immediately rule out this bizarre and unaffordable policy'. He added: '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. 'The SNP's existing plans involve benefits spending £2 billion higher than other parts of the country by the end of the decade – and it's Scottish workers that will be saddled with the cost when they are already paying the highest rates of tax in the UK.' The group recommended 'strengthening the existing safety net' between 2026 and 2031, including scrapping the two-child benefit cap and the five-week wait for the first Universal Credit payment. UK ministers should 'end punitive conditions and sanctions' in the welfare system, the report said, while their SNP counterparts doubled the Scottish Child Payment to £55 per week. These 'initial steps' would cost the Scottish Government £671 million per year, the study estimated. Between 2031 and 2036, SNP ministers would be handed new powers by the UK Government to implement the minimum income guarantee and a commission set up to decide on its level. The minimum income guarantee would 'replace Universal Credit payments and where possible combine with other means-tested entitlements for simplicity,' the study said. 'We must act urgently' Russell Gunson of the anti-poverty charity the Robertson Trust, who chaired the group, said: 'A minimum income guarantee could be transformative, putting in place a universal guarantee that's there for everyone in Scotland. Given the levels of poverty and inequality we see, we must act urgently. 'The first steps we set out over the next five years are affordable in the current context, and doable within existing powers. We can't wait – and we don't need to wait – to begin to make the changes outlined in this report.' Shirley-Anne Somerville, the SNP's Social Justice Secretary, welcomed the report but she said there were 'no plans to change tax policy'. She said: 'We will consider the Expert Group's report and the accompanying research and respond to the recommendations of the Expert Group in due course.'
BBC News
18-06-2025
- Business
- BBC News
Report calls for minimum income guarantee pilot in Scotland
A minimum income guarantee could be piloted in Scotland following next year's Holyrood 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 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 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 Scottish Conservatives described the policy as "bizarre and unaffordable" due to the 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 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 were 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."
The Independent
09-06-2025
- Business
- The Independent
Family visa income threshold should not rise to skilled worker level
The Government has been warned against raising the minimum income threshold for family visas to the same level for skilled workers as it is most likely to conflict with human rights law, an advisory body has said. Skilled workers are only eligible to come to the UK if they earn a salary of £38,700 or more, compared to £29,000 required mainly for British citizens or settled residents to bring their partner to the country under family visas. The Migration Advisory Committee (MAC) set out its recommendations after a review requested by the Home Secretary to look at how to set a minimum income requirement (MIR) for family visas that balances economic wellbeing and family life. The previous government planned to introduce the higher threshold for family visa applicants to be equivalent to the skilled worker level. But the committee's report said: 'Given the family route that we are reviewing has a completely different objective and purpose to the work route, we do not understand the rationale for the threshold being set using this method. 'We do not recommend the approach based on the skilled worker salary threshold as it is unrelated to the family route and is the most likely to conflict with international law and obligations (e.g. Article 8).' Article 8 of the European Convention on Human Rights is the right to private and family life that can be applied to migration cases in the UK. The UK's current £29,000 threshold is high compared to other high-income countries reviewed by the MAC. The analysis found a high proportion of applicants for partner visas are women and 90% are under the age of 44. Pakistan is the largest nationality to use the route applying from outside the country. The committee's analysis gave some options that a threshold of £24,000 to £28,000 could give more priority to economic wellbeing, such as reducing the burden to taxpayers, than on family life. It also suggested a criteria of £23,000 to £25,000 to ensure families can support themselves but not necessarily require them to earn a salary above minimum wage. Chairman of MAC, Professor Brian Bell, said: 'While the decision on where to set the threshold is ultimately a political one, we have provided evidence on the impacts of financial requirements on families and economic wellbeing, and highlight the key considerations the government should take into account in reaching its decision.' While the committee said it is not possible to predict how different threshold changes would impact net migration, it said lowering the amount to £24,000, for example, could mean an increase of around one to three percent of projected future net migration. The report added: 'Determining the MIR threshold involves striking a balance between economic wellbeing and family life. 'Whilst a lower threshold would favour family life and entail a higher net fiscal cost to the taxpayer, a higher threshold (below a certain level) would favour economic wellbeing. 'But a higher number of families would experience negative impacts relating to financial pressures, prolonged separation, relationships, adults' mental health and children's mental health and education.' The committee advised against raising the threshold for families with children as despite them facing higher living costs, the impacts on family life appear 'particularly significant' for children. It also recommended keeping the income amount required the same across all regions of the UK. The MAC also said their review was 'greatly hindered' by insufficient data and urged for better data collection by the Home Office on characteristics of each applicant to be linked to outcomes to inform further policy decisions. Reacting to the recommendations, shadow home secretary Chris Philp said the report shows that raising the salary threshold will drive migration numbers down and urged for the threshold to be increased to £38,000. 'Migration figures remain far too high. It's time to end ECHR obstruction, raise the salary thresholds, and take back control of who comes into this country,' he said. 'As Kemi and I said on Friday, if the ECHR stops us from setting our own visa rules, from deporting foreign criminals or from putting Britain's interests first, then we should leave the ECHR.' A Home Office spokesperson said: 'The Home Secretary commissioned the independent Migration Advisory Committee to undertake a review. 'We are now considering its findings and will respond in due course. More broadly, the government has already committed to legislate to clarify the application of Article 8 of the ECHR for applicants, caseworkers and the courts.'
The Independent
09-06-2025
- Business
- The Independent
UK family visa rules should be relaxed, government review suggests
British workers should be able to bring their family members to the UK more easily, a government review into family visas has suggested. Under policies brought in by Rishi Sunak's Conservative government, British citizens or settled residents who want to bring their partners to the UK are required to show they have a salary of at least £29,000 a year. The Conservatives had planned to further raise the threshold to £38,700, but Labour ordered a review of the requirements, which have been described as a 'tax on love' by critics. In a boost to separated families, the review has now said that an appropriate minimum income requirement (MIR) would be between £23,000 and £25,000 a year. In a report published on Tuesday, the Migration Advisory Committee (MAC) said they consider a range of between £21,000 and £28,000 to be reasonable. They added that their modelling of different options 'cluster around the region of £23,000 to £25,000'. This would allow most British workers in full-time minimum-wage jobs to qualify to bring their spouses to the UK. This is however still higher than the previous £18,600 threshold that was in place before the 2024 changes. The review authors estimated that if the salary threshold was dropped from £29,000 to £24,000 this would increase net migration by up to 8,000 people, roughly 1-3 per cent of projected future net migration. Rachel Roberts Dos Santos and her two boys, Emanoel and Jaime, have been living apart from her Brazilian husband and stepdaughter because of the income rules. She said the report recommendations sounded promising, but added: 'In an ideal world, there would be no price tag on love'. Ms Roberts Dos Santos said goodbye to her husband Manoel in 2019 for what she thought was six months while she tried to earn enough to meet the salary threshold. When Covid hit she lost her job and was unable to meet the income requirements needed to reunite her family. 'My two boys are registered child models, and one of them earned some money in 2023 and we were able to buy three plane tickets to go and see daddy for the first time in four years. Then last year Manoel was able to come to the UK for six months on a tourist visa, but when he went back it left a massive hole again.' She is now training to be a project manager with the aim of getting a job above the £29,000 threshold. The MAC has also recommended that the Home Office consider ways to factor in any job offers that a partner wishing to come to the UK has. Caroline Coombs, co-founder of Reunite Families UK, said: 'We appreciate MAC's reference to the fact that should the government decide to maintain an MIR, this should be lowered and reflect minimum wages however we firmly believe that there shouldn't be an MIR given its impact. Any threshold even at minimum wage would still separate many groups of people who just want to be a family here in the UK.' Chair of MAC, Professor Brian Bell, said the committee's report outlines 'several approaches the government could take, along with the strengths and weaknesses of each.' Green MP Carla Denyer, who has met with separated families, said: 'Minimum income requirements for family visas are a cruel tax on love that tears families apart and puts untold stress on those with the misfortune to simply fall in love with someone who is not from this country. 'The current system is cruel and impractical and should be scrapped.' But the Conservatives called for Labour to urgently revive the party's plan to hike the salary threshold to £38,000. Shadow home secretary Chris Philp said: 'Migration figures remain far too high. It's time to end ECHR obstruction, raise the salary thresholds, and take back control of who comes into this country. This includes a binding annual cap on immigration set by Parliament, but Labour recently voted against doing this. Only the Conservatives have a credible plan.'
