BUDGET: MSP JACKIE BAILLIE WELCOMES SCRAPPING OF TWO-CHILD BENEFIT CAP

 by Democrat reporter

MSP Jackie Baillie has welcomed Chancellor Rachel Reeves’ Budget Statement, describing it as “running to the heart of Labour values”. 

And the local politician urged the SNP Scottish Government to “do better” after the Chancellor announced that Scotland stands to benefit from funding worth an additional £820 million.

The UK Government also announced that the two-child benefits cap for Universal Credit claimants will be scrapped. 

It is estimated that the move will benefit some 2,190 children in West Dunbartonshire, lifting them out of poverty and reduce relative child poverty nationally by around 450,000 by the end of the decade. 

Scotland also stands to benefit from an additional £820 million.The boost will mean that £10.3 billion in additional resources has been pledged to Scotland since the UK Labour government took office. 

Some levies will also be removed from energy bills, which will see households save £150 from April 2026. 

Warm Homes Discount has also been expanded – which will give 6 million of the most hard-up UK households an additional £150 off energy bills. 

Jackie Baillie, LEFT,  said: “Scottish Labour demanded a Labour budget which would run to the heart of our values.

“It was essential that the Chancellor delivered a budget which benefited the worst off in our society, including the poorest families in my own Dumbarton constituency, and that is what the Chancellor delivered. 

“This budget has lifted more than 2,000 children in West Dunbartonshire out of poverty, taken £300 off energy bills for those most in need, increased the living wage and delivered £820 million extra for Scotland. 

“Scottish Labour will continue to reject austerity. 

“It is now up to the Scottish Government to ensure it does not squander the £10.3 billion in additional resources delivered by Labour. The SNP must not continue its wasteful record which has seen public services decline. 

“Scottish Labour is the only party which can fix our NHS, bring back community policing and unlock the potential of our young people.” 

Scotland will also receive a share of £783 million to support regeneration in local communities. 

The Chancellor also extended the freeze on fuel duty for motorists until the end of August 2026, which will save households £89 next year. 

Scotland’s young people will also benefit from an increase in the Minimum Wage for 18 to 20-year-olds, which rises from £10 to £10.85 per hour, while the Living Wage will rise from £12.21 to £12.71 per hour. 

The Chancellor’s tax reforms also included a review of property tax and landlord income. 

Pensioners are also set to benefit from a 4.8 per cent increase in the State Pension as Rachel Reeves maintained the Labour government’s commitment to the Triple Lock.

Top of page: Chancellor Rachel Reeves delivering her Budget speech in the House of Commons.

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As winter approaches, 100,000s of people are struggling to afford the essentials. So to hear the two-child limit has been scrapped in the #Budget is hugely welcome and will be transformational for around 20,000 children across Scotland.
Unfortunately, the failure to act on unfreezing the rate of Local Housing Allowance and to deliver a social tariff on energy bills mean that the extortionate levels of rent arrears and energy debt will continue to have devastating impacts on people’s physical and mental health.
Read more from our CEO, Derek Mitchell, around how these challenges increase the demand for our advice and why we need solutions that protect people – and we need them now 

One comment

  1. Transformational some may claim but the reality is that working people and pensioners are now paying more tax.

    Indeed, with the freezing of the personal tax allowance pensioners are paying tax on their state pension.

    But with the ink.hardly dry on the £26bn blackhole budget for there to be claims that Reeves mislead parliament.

    Strong stuff but it seems that the supposed black hole that was used to justify swingeing tax rises in contravention of express promises only a year back, was nothing of the kind. Seems the £26m blaas Reeves was forced to ckhole was nothing of the kind – but rather an overstatement big time.

    And already Reeves is struggling to hold the line on lying to parliament. Her interview on Sunday morning by Laura Kunesberg was brutal as Reeves was forced to admit that the numbers were not right.

    Skewered on a tissue of lies, lies that taxes she said would not rise did rise, and skewered on the lies that the country’s finances were worse than they were. Its stuff that Reeve may have to resign for in the not too distant future.

    And meanwhile, millions of hard working people, and pensioners will have to pay more tax when their was no justification for the rises.

    Promises made, promises broken and highest ever tax take since since world war two.

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