The SNP has today highlighted a new report from the Resolution Foundation which has found that “UK tax and benefit policy is unlikely to act as a boost to the income of low and middle income Scottish families.”
The Resolution Foundation report, State of working Scotland, has found that further increases in the personal tax allowance by the UK government will “primarily benefit higher earners” and will “do nothing” for low earners. It also concludes that introduction of Universal Credit could reduce work incentives and cuts to in-work support will “have a large impact” on incomes.
However, the report also shows that fewer people are on zero-hours contracts in Scotland than any other region or nation and that a lower proportion of workers are paid less than the Living Wage. Overall, median pay in Scotland is now higher than in England.
Commenting, SNP MSP Joan McAlpine said:
“This report is further proof that for all their rhetoric on creating a high-wage economy, Tory government policies are unlikely to boost the incomes of the lowest paid.
“The Resolution Foundation is clear – increases in the personal allowance will ‘do nothing’ for low income families but cuts to benefits will have a ‘large impact’ on their incomes.
“In contrast, the SNP government has focussed on boosting the incomes of the poorest and encouraging fair work practices. This report has found that compared to the UK as a whole there are now fewer employees in Scotland on zero-hours contracts or earning less than the Living Wage.
“We cannot be complacent – there is much work to do to ensure fair work and fair pay for all. But it is abundantly clear that Tory government tax and benefit policies are doing more harm than good.”
The Resolution Foundation report can be found here: http://www.resolutionfoundation.org/wp-content/uploads/2016/01/Final-Scotland-slides-19.1.pdf