Spending on Scottish Welfare Fund falls by 10% in 2023-24

A grant scheme that provides emergency cash for hard-up families paid out just under £50 million last year – with the amount of financial help provided down by 10%.

The Scottish Welfare Fund paid out a record £55.9 million in 2022-23, but new figures showed that in 2023-24 expenditure fell to £49.9 million.

Despite the drop in support, spending on the fund was over-budget.

A total of £38.7 million had been made available for the scheme to councils, who are responsible for making the awards, with spending amounting to 129% by the end of the year.

Twenty-four of Scotland’s 32 local authorities overspent their budget – with Perth and Kinross spending 215% of its allocated amount, while North Lanarkshire (194%), Fife (190%), and Edinburgh (176%) also had significant overspends.

However, figures published by the Scottish Government showed the £14.3 million overspend was lower than then £16.5 million overspend recorded in 2022-23.

The Scottish Welfare Fund, which was set up by ministers in 2013, provides both crisis grants to those in need of emergency assistance, and community care grants, which which can be used to help those who have been homeless, in care, in prison or who are fleeing domestic abuse to live independently.

Spending on crisis grants totalled £18.5 million in 2023-24 – with this down by 13% from the previous year.

Grants in 2023-24 included just over £11 million to help households buy food, with a further £2.7 million going to help those struggling to heat their home.

A total of 160,595 grants were awarded, a drop of 14% from 2023-24, with applications for help also down by 11% to 259,355.

Spending on community care grants was also down by 9% to total £31.4 million in 2023-24.

Over the year, a total of 86,020 applications for help were made, 9% less than in 2022-23, with 41,460 of these granted – 15% less than the previous 12 months.

Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is a central mission for the Scottish Government.

“Child poverty levels in Scotland have been consistently below the UK average in recent years, with our policies estimated to keep 100,000 children out of relative poverty in the year ahead.

“The Scottish Welfare Fund (SWF) was established on April 1 2013 and remains an essential source of occasional support for those most in need.

“That is why we took the decision to maintain the SWF budget at £41 million, despite significant fiscal pressures.

“Since April 2018 more than 544,000 households have received Scottish Welfare Fund awards totalling more than £281 million.

“We will continue to closely monitor spend and demand trends for the SWF, and continue to work closely with local authorities who are delivering the SWF within challenging times.”