Campaigners have warned that a "huge gap" remains between the cost of raising a child in Scotland and actual family incomes, despite lower childcare costs compared to England.

The Child Poverty Action Group (CPAG) in Scotland said it was "bitterly disappointing" that the Scottish child payment has not yet been raised to the £30 per week promised by First Minister Humza Yousaf during his campaign for the SNP leadership.

Currently low income families can benefit from £25 a week for any children under-16, with the payment due to increase to £26.70 a week from April in line with inflation.

The CPAG report is the latest in a series commissioned by the Centre for Research in Social Policy at Loughborough University which estimates that it cost at least £166,000 on average across the UK in 2023 to bring up a child at a socially acceptable standard of living.

Inflation, and the enduring impact of UK benefit cuts, mean that families with children who have little or no paid work still receive less than half what they need through universal credit and child benefit.

However, the shortfall between family incomes and the cost of child-rearing is lower in Scotland - at 40% - compared to the UK average of 50%.

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In Scotland, the report notes that families benefit from a number of policies set by the government at Holyrood, including the Scottish child payment, universal free school meals for all pupils in P1 to P5, best start payments, free bus travel for young people under 22, school clothing grants, and comparatively cheaper than childcare.

For low income families, the report found that these could reduce the net cost of bringing up a child by more than a third.

However, the researchers cautioned that many are still unable to meet the minimum socially acceptable standard of living, even if working full time on the ‘national living wage’ of £10.42 per hour. 

The Herald: During a SNP leadership hustings on March 7 Mr Yousaf said he would raise the Scottish Child Payment to £30 per week from £25 in his first budget if elected First Minister.During a SNP leadership hustings on March 7 Mr Yousaf said he would raise the Scottish Child Payment to £30 per week from £25 in his first budget if elected First Minister. (Image: PA)

It comes as MSPs prepare to vote tomorrow on the Scottish Government's tax and spending plans.

CPAG and other members of the End Child Poverty coalition said the draft Scottish Budget for 2024-25 will "stall progress" on tackling child poverty.

John Dickie, director at CPAG Scotland, said: “This important analysis confirms that Scottish Government policies that are already in place, not least the Scottish child payment, are making a big difference to families.

"But there is still a huge gap between incomes and the minimum cost of raising a child. The Scottish Budget needs to do far more to plug that gap.

"It’s bitterly disappointing that as yet we have not even seen an increase in the Scottish child payment to the £30 per week that the First Minister said he wanted during his leadership campaign.

"This new analysis shows just how much more is needed to ensure families have an adequate income to give their children a decent start in life.”

The Herald: Researchers say it now costs at least £166,000 to raise a child from birth to adulthood to a 'socially acceptable' standardResearchers say it now costs at least £166,000 to raise a child from birth to adulthood to a 'socially acceptable' standard (Image: PA)

Dr Juliet Stone, a research fellow at Loughborough University who authored the report, said: “As the cost-of-living crisis continues to severely stretch the incomes of families across the UK, the additional financial support provided to households with children in Scotland, particularly through the Scottish child payment, is more important than ever.

"However, even in Scotland the social security system still fails to provide enough for these households to reach a minimum socially acceptable standard of living.

"Much more needs to be done to protect children and their families from financial hardship.”

A Scottish Government spokeswoman said: “Tackling poverty and protecting people from harm is one of three critical and interdependent missions for the government and the Scottish Budget 2024-25 unapologetically directs our resources to those in greatest need.

“It commits a record £6.3 billion in social security benefits and payments - over £1 billion more than last year.

"This includes increasing the Scottish Child Payment in line with inflation to £26.70 a week from April, giving more support to over 327,000 under 16s who receive it.

"This benefit is not available anywhere else in the UK, as have chosen to prioritise lifting children out of poverty, despite our constrained resources.

“Modelling estimates that 90,000 fewer children will live in relative and absolute poverty in 2023-24 as a result of the Government’s policies, with poverty levels 9% points lower than they would have otherwise been.

"This includes lifting an estimated 50,000 children out of relative poverty through the Scottish Child Payment. “