Response to Scottish Budget 2026

Money Advice Scotland welcomes many of the announcements in today’s Scottish Budget from the Scottish Government, particularly their continued strong commitment to tackling child poverty. The increase in the Scottish Child Payment to £28.20 per week from April 2026, in line with inflation, alongside the planned premium rise to £40 per week for eligible children under one from 2027-28 are positive steps. However, we’d like to see the increase go beyond inflation for all families and be implemented sooner. These measures will help ease financial pressures during a critical early stage of life and contribute positively to reducing household debt and improve financial wellbeing across Scotland.   

We also appreciate the broader efforts to protect vulnerable households through progressive income tax adjustments (raising the basic and intermediate rate thresholds by 7.4%) which will put more money in the pockets of lower and middle earners, as well as continued investments in cost-of-living supports like free prescriptions, bus travel, and expanded childcare and breakfast clubs. 

However, we have some concerns about aspects of the council tax reforms announced. While the introduction of two new higher bands for properties valued over £1 million from April 2028 aims to make the system fairer by targeting the wealthiest homeowners, we urge careful implementation and safeguards to ensure no unintended negative impacts on vulnerable groups, such as pensioners or those receiving social care who may live in higher-valued properties due to long-term residency rather than current wealth. We would welcome assurances that protections, mitigations, or exemptions will be considered for those most at risk during any revaluation or banding changes. 

We also remain concerned that the Scottish Budget does not include measures to support a council tax freeze. Continued funding pressures on local authorities, combined with the absence of a cap on increases, mean households already facing hardship could see further rises in their bills. Council tax is a significant driver of debt advice demand, and stronger intervention could provide essential relief and help prevent further debt escalation among low- and fixed-income families. 

Janine Rennie, Chief Executive of Money Advice Scotland said: 

“The Government’s emphasis on progressive measures and child poverty alleviation is welcome, but we urge further action to protect the most vulnerable from potential council tax increases in the year ahead.   

“We remain ready to collaborate with the Scottish Government to ensure these policies achieve meaningful financial resilience for people in Scotland.”