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The Progressive Policy Think Tank

IPPR Scotland Responds to UK Chancellor’s Cost of Living Announcement

  • Despite the “unnecessary delay”, IPPR Scotland welcomes long overdue UK government U-turn on cost-of-living support, paid for through a Windfall Tax  

  • The UK Chancellor’s announcements offer welcome relief for now, but more work is needed to develop a safety net that works and tackle the climate crisis, to prevent families in Scotland from being pulled into crisis in the future 

  • From the announcement made today, the Scottish Government is expected to receive £41 million of Barnett consequentials. The Scottish Government must urgently set out how it will get this money to the lowest income households who need support today 

Philip Whyte, director of IPPR Scotland said:  

“While the unnecessary delay leading to today’s announcement has meant families facing unacceptable hardship, it is a welcome reprieve that is better late than never. Nonetheless, this package is just a sticking plaster when households need long-term certainty. Further support cannot be ruled out, and the Scottish Government must now urgently set out how they will use at least the additional £41 million they are expected to receive to further help the most vulnerable households. 

“The current situation underscores the fact that the cost-of-living crisis is also a climate crisis, and vice versa. As we move forward, we need to go further, faster on helping households to make the necessary improvements to their heating and insulation - particularly those who are fuel poor – to address that twin crisis.  

“The Scottish Government has made ambitious commitments to decarbonise domestic heating and improve energy efficiency. The priority now should be to supercharge delivery of those, at the necessary scale, to help Scotland’s poorest households improve their living standards and cut their bills, while putting Scotland on a credible path to meeting its emissions reduction targets. The UK government too must commit to moving away from a dependence on fossil fuels and provide the necessary capital investment to support those ambitions.”  

ENDS