Tackling child poverty delivery plan: fourth year progress report 2021-2022 - focus report on households with mothers aged 25 or under

3. Income from social security

Social Security in Scotland is delivered by two different bodies. Reserved benefits are delivered by the UK Government's Department for Work and Pensions (DWP). Devolved benefits are delivered by Social Security Scotland. Mothers aged under 25 are entitled to claim both reserved and devolved social security benefits in cases where they meet the eligibility criteria.

3.1 Targeted reach of benefits

There are a range of benefits available to mothers under 25. Eligible young mothers can claim one or more of the Five Family Payments administered by Social Security Scotland. These are three Best Start Grants, Best Start Foods, and Scottish Child Payment. Data shows that applications for the benefits was considerably high amongst younger age groups. Between December 2020 and May 2021:

• 90% of Best Start Grants and Best Start Foods applicants were women, and 17% were aged 16-24.
• 89% of Scottish Child Payment applicants were women, and 15% were aged 16-24.

Overall, experience of the application process appears to be positive. Social Security Scotland research^[97] shows that:

• 94% of 16-24 year olds, and 94% of women, rated their experience of applying for Social Security Scotland benefits as "Very good" or "Good".
• 7% of 16-24 year olds, and 6% of women, faced barriers getting help from Social Security Scotland.

Qualitative research^[98] with 36 people who have received Best Start Grants, including 35 women and ten 18-24 year olds, found that people became aware of the benefit from numerous sources including support organisations (e.g. One Parent Families Scotland) and healthcare practitioners. Participants were surprised that the benefit was available to them and thought they would not meet the eligibility criteria. They did not view the benefit as stigmatising and intended to apply again if possible. They also found the application process straightforward. However, the findings suggest that some aspects of the application process may need to be reviewed. Suggestions included making it easier for applicants who have literacy issues, and communicating more effectively with people when claims are subject to delays.

3.2 Value of benefits

Young mothers are more likely to be reliant on social security benefits than other priority family groups (see Figure 2 in Chapter 1). However, the generosity of the reserved benefits for under 25s is lower than for older age groups.

• Young people on benefits receive a lower basic allowance than claimants aged over 25, and the Local Housing Allowance (LHA) rate for single young people living independently is lower than for those aged over 35.^[99]
• The transition to Universal Credit has disproportionately impacted single parents under 25. People under 25 are entitled to a lower allowance of benefits than people aged 25 and over and, with Universal Credit, no longer receive an exemption for single parents to account for the cost of caring for a child alone. This has had direct impacts on young single parents who face difficulties having to meet the same financial pressures but with less support from social security income after the transition.^[100] Young parents also experienced a further decrease in their Universal Credit allowance with the removal of the £20 uplift.^[101]

Younger people are also more likely to receive benefit sanctions which decrease the level of benefits they receive. Research shows that a young person living independently in the UK is nearly four times as likely to receive a benefit sanction compared to older claimants.^[102] A similar pattern is true for Scotland.^[103] While this is sometimes attributed to younger people's behaviours, such as missing appointments, it is important to consider the difficult circumstances these young people may be navigating. As a result, some of the most vulnerable young people, including young parents can face significant barriers in accessing benefits. They are also disproportionately impacted by the conditionality regime. With any sanction applied, there is a greater financial impact for those under 25 due to the lower amount of benefits young people receive, while still facing the same benefit reductions as the over 25 age group.

Social Security Scotland administers the Five Family Payments which can be claimed by young mothers. The value of Best Start Grants are:

• a Pregnancy and Baby Payment of £642.35 on the birth of a first child, and £321.20 for any subsequent children.
• an Early Learning Payment of £267.65 for children between 2 and 3.5 years old.
• a School Age Payment of £267.65 to help with the costs of preparing for school.

In addition, Best Start Foods provides a prepaid card that can be used in shops or online to buy healthy foods, and is available to both pregnant mothers and those with children aged under 3. It provides £36 every 4 weeks for those with children aged under 1, otherwise the payment is £18 every 4 weeks.

Scottish Child Payment is an income supplement which delivers regular, additional financial help to low-income families. It provides £80 every four weeks (increasing to £100 by the end of 2022).

In addition to the Five Family Payments, eligible young mothers can apply for Job Start Payment if they are offered a job. Job Start Payment is a one-off grant to help with the costs of transitioning to employment. While the standard rate of Job Start Payment is currently £267.65, parents are entitled to a higher rate of £428.25.

Evaluations of Best Start Foods, Scottish Child Payment, and Job Start Payment will be published later this year, and will give some insight into the impact of these payments on recipients. However, qualitative research^[98]. with Best Start Grant recipients, including young mothers,found that the payments had a positive impact on household finances at key transitional stages of childrens' lives, and helped to reduce parents' financial stress and anxiety. Participants reported using all or most of the grant to buy what were deemed to be essential items (e.g. clothes for new born babies or school uniforms) for their children at these stages. Overall, the Best Start Grants were very well received by recipients. Notably, there was very little variation in the views expressed by participants in different demographic groups.

Some mothers interviewed mentioned receiving the Best Start Grant and what a great help it was in allowing them to buy essentials for the baby.

“We managed to buy a cot which turns into a bed which she can use ‘til she’s 5, a wardrobe, a chest of drawers and managed to buy nappies and stuff like that [with Best Start Grant]. If we didn’t have that, it would’ve been a struggle trying to sort everything.”

Mother aged 20-25, part of FNP

Mothers for whom rent is covered by Universal credit mentioned this as a great relief as they were sheltered from the impact of rent increases.

Pregnancy can be a particularly challenging time in terms of income from social security. Mothers who were on Jobseekers Allowance while pregnant found the process burdensome. Particularly as it was unlikely that they would gain employment whilst pregnant. They also reported that it was a struggle to make ends meet on this payment.

“I did struggle without income support. You’re not on income support until you’re 24 weeks (pregnant) and maternity grant after 24 weeks pregnant. So initially I was on job seekers, which wasn’t really enough”

Mother under 20, part of FNP

3.3 Take-up of benefits

A review by the social security committee found that young people (aged 16 – 24) living independently can face barriers accessing income from benefits as they have less experience navigating complex social security systems. This can be exacerbated for young people with undiagnosed mental health issues or learning difficulties who have not been able to access extra support. ^[104]

While some mothers who spoke to us had been able to claim benefits, others discussed a lack of confidence in knowing how to find out about their benefit entitlement or being able to access them.

“Applying for universal credit was not straightforward at all. The first time I received it was in 2020. It used to be straightforward. But then I moved house… Then it took another six months for them to give me money again. Every time I would be either hung up on or I wouldn’t go through’”

Mother under 20, part of FNP

“Benefit wise it’s really hard to find them. Particularly if you don’t have the right people to help you find the benefits you’re entitled to. The help needs to be broadcasted so that everyone can access it”

Mother under 20, part of FNP

Where mothers were able to access benefits, many still faced problems in getting support when they needed it, to support their new child and changing financial circumstances. Some mothers under 20 in particular discussed the lengthy application process and delayed payments as particular barriers.

“I made the claim when I was pregnant and I couldn’t get anything till I was 18. I think it was like 3 months or anything until I actually got it. It was quite difficult. I was using anything I was given.”

Mother under 20, part of FNP

“The universal credit I had a problem with at the start. I applied when I was pregnant, and the first time they only put £27 in my account because of an HMRC error.”

Mother under 20, part of FNP

“It was a lengthy process for universal credit and difficult to go through checks and everything. I was only 18 and didn’t have own phone contract or address or half the things they wanted, and then it takes 6 weeks before you get the first payment.”

Mother aged 20-25, part of FNP