Cost of living crisis: Kate Forbes announces £150 cash support

Three-quarters of Scots households will receive a one-off payment of £150 to help with the cost of living crisis, the Scottish Government has announced.
 
Finance secretary Kate Forbes admitted the cash would reach some who may not need the help, but that it was “the only route we have to make sure we reach those for whom it will make a difference, quickly and simply”.

It comes as rising prices, increasing energy tariffs and a hike in National Insurance contributions look set to leave some of the poorest Scots short of cash.

All households in council tax bands A to D and all of those eligible for a council tax reduction - around 1.85 million households, or 73 per cent of all Scottish households - will receive the money. 
 
Forbes made clear she wanted local authorities to deliver this as a direct cash payment, but she said that given time constraints it could be delivered as a credit to council tax accounts.
 
The announcement follows a similar move from Chancellor Rishi Sunak, who last week announced all homes in England in bands A to D would get a £150 rebate off their council tax bills. 
 
He said the council tax rebate would mean an extra £290m for Holyrood, but Forbes said that that wasn’t accurate. 
 
She told MSPs: “Firstly, we will provide £150 to every household in receipt of council tax reduction in all council tax bands. The Council Tax Reduction Scheme already identifies households in greatest need and will allow us to target this intervention.
 
“Secondly, I will provide local authorities with funding to pass on £150 to other occupied households in bands A to D in Scotland.
 
“In total, combining these elements, 1.85 million, or 73 per cent of all households, will receive £150 of support.
 
“I have discussed this matter directly with Cosla, indicating my preference for this to be distributed as a payment rather than as a council tax credit.
 
“However, due to the urgency of mobilising this funding quickly, councils will have a choice – they can deliver a direct payment or a credit to council tax accounts, as long as it can be done in April.
 
“This is clearly an imperfect scheme, it will reach some households who may not need this, but it is the only route we have to make sure we reach those for whom it will make a difference, quickly and simply.
 
"So, the third element of the package, is that I am also announcing £10m in 2022-23 to continue our Fuel Insecurity Fund to help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs.
 
“This package today is in addition to the further £120m I announced previously for local government in 2022-23, to ease their pressures and help prevent inflation busting council tax rises.”