Scottish Budget: Scottish Child Payment to increase

It comes after the UK Government confirmed the two-child benefit cap will be scrapped from April, clearing up finances set aside to mitigate the limit in Scotland.

The Herald led a campaign - Scotland's Forgotten Children - last year, supported by 23 leading anti-poverty charities, wrote to First Minister John Swinney calling for the Scottish Child Payment to be increased.

It also asked Prime Minister Sir Keir Starmer to scrap the two-child benefit cap – a move taken in November.

Campaigners have said it is a significant step towards meeting legally binding child poverty targets.

On Tuesday, Ms Robison told the Scottish Parliament the weekly payment will increase to £40 for eligible children under the age of one.

For all other eligible children, the payment will increase next year with inflation.

She said: "This support for mums and dads will help them through that critical first year of their child’s life. Delivering the best start in life for children, and families.

"This commitment speaks to who we are as a government, to our values and to our ambition for each and every child in our land."

Mr Swinney said his key aim in government was the eradication of child poverty, however the Scottish Government had previously ruled out further increases to the Scottish Child Payment, warning rises would remove the incentive for parents to work.

However, The Herald revealed, following an investigation from Common Weal, that government officials had no evidence to back this argument.

Read more:

• Scottish Budget 2026 live as Shona Robison sets out tax and spending plans
• 'Running out of time': Budget warning as Scotland nears child poverty deadline
• No evidence child payment deters work, admits Government
• Scotland's Forgotten Children

The Scottish Budget contained other key commitments on child poverty, including ensuring every primary school and special school in Scotland will have a breakfast club.

Laying out her tax and spending plans to MSPs, MS Robison said: “The choices made in this Budget enable us to go further and do more."

The poverty announcements come after the Joseph Rowntree Foundation warned time was running out to meet legally binding targets, to cut relative child poverty to under 10% by 2030-31 and absolute to less than 5%.

The think tank said that a further 100,000 children must be lifted out of poverty if the targets are to be met, with an increase of £40 per week to the Scottish Child Payment for all eligible children described as one of the most effective ways to achieve this.

Claire Telfer, head of Scotland at Save the Children, said: “We are delighted that the Scottish Government has committed to doing better for babies in today’s budget by announcing a boost to the Scottish Child Payment for families with a baby from 2027. 

“We have been campaigning hard for targeted income increases for families with a baby under one when the impacts of tackling and preventing poverty can have the greatest impact. This is the bold action we have been calling for to meaningfully tackle child poverty and make sure every baby in Scotland has an equal chance to thrive.  

“This is a moment of hope for families, and for all of us. Investing in the tiniest members of our society – alongside the other commitments made to tackle child poverty - is how we sow the seeds of a brighter tomorrow.  

“We want all children to have an equal chance to achieve their potential, there must be no limits to childhood. We hope to see cross-party support for this important part of the budget, which will make a real difference to the lives of parents and babies today, and to the Scotland of tomorrow.”