Elected on a slogan of Change, how is the new UK Labour Government performing and with 37 MPs in Scotland, what has changed for the Scots?
On July 4th 2024 the electorate went to the polls and Sir Keir Starmer’s Labour party was returned with a whopping 411 MPs. In Scotland the SNP was drastically reduced to 9 MPs as voters returned 37 Labour MPs .
This massive majority means that Labour could get any legislation it wanted passed in the House of Commons. They really could change things.
Child Poverty
One of the first things the UK Labour Government did was to keep the Two Child Benefit Cap. This is also known as ‘The Rape Clause’ because it means that anyone claiming a benefit for more than the 2nd child would have to prove that subsequent children were the results of a rape. It is the one piece of legislation which has contributed to child poverty in the UK more than any other. When it was first introduced the Scottish Government took measures to mitigate its effects.
In this current Labour dominated UK Parliament the SNP tried to get ‘the rape clause’ removed but Labour (with the exception of a handful of rebels) continue to support it.
The two-child limit restricts support through universal credit (UC) or child tax credit to the first two children in a family, for children born after 6 April 2017. Parents having a third or subsequent child after that date are not eligible for support for that child. The majority of families affected by the policy are living in poverty, despite 59% of these families having one or both parents in paid work.
Abolishing the two-child limit is the most cost-effective way to reduce child poverty, and the most urgent action the government must take to reduce child poverty. It would lift 300,000 children out of poverty and mean 700,000 children are in less deep poverty, making a significant difference to the lives of over a million children at a cost of £1.7 billion. – Child Poverty Action Group
Every Labour MP in Scotland supported keeping the 2 Child Benefit Cap.
Ending the Winter Fuel Payment to all Pensioners.
Over the last few years all householders have seen their energy Bills escalate. Charities in the UK have condemned the decision by the Labour UK Government to means test pensioners to decide who receives the Winter Fuel Payment (WFP). Age UK estimate that more than 800,000 older people living on very low incomes – under £218.25 a week for single pensioners and under £332.95 for couples – who are already missing out of the Pension Credit, will now lose the WFP that helps them to pay their fuel bills.
In addition, the charity estimates that there are also about a million pensioners whose weekly incomes are less than £50 above the poverty line, who will also be hit hard by the loss of the Payment. This equates to around 2m pensioners forced into fuel poverty. In addition, Warm This Winter data suggests that another 2.9m pensioners will now face financial difficulty this winter due to the decision.
A spokesperson for the End Fuel Poverty Coalition commented:
“When Rishi Sunak threatened to axe Winter Fuel Payments in September 2023 we said that this could be a death sentence for pensioners who are only just about managing to keep out of fuel poverty.
“Nothing has changed.
“Energy prices are still high, people are still struggling with the cost of living and this dangerous decision by the Chancellor could condemn pensioners to living in cold damp homes this winter.
“Figures for the Warm This Winter campaign suggest that almost half of over 75s could now see their winter heating budget torn to shreds as they have modest incomes and will not now be eligible for the payment.”
In Scotland where the WFP was recently devolved the Scottish Government have followed suit due to a cut in the money they would have received from the UK Government if they had decided to retain the Winter Fuel Payment for all pensioners.
Social Justice Secretary in the Scottish Government Shirley-Anne Somerville said:
“The Chancellor has set out plans to end universal Winter Fuel Payments in England and Wales by restricting it to those receiving Pension Credit and other means tested benefits from this year onwards. This decision was taken without any consultation or discussion with Scottish Government Ministers, which is deeply disappointing given both governments committed to resetting the relationship between them.
“The UK Government’s approach reduces the Block-Grant Adjustment associated with devolution of the UK’s Winter Fuel Payment by an estimated £140 million to £160 million in 2024-25 – nearly 90% of the cost of the Scottish Government’s new replacement benefit, Pension Age Winter Heating Payment.”
The Labour MPs elected in Scotland all fully support the UK Labour Government’s policies and actions.
Higher Energy Bills for All of Us
From 1 October 2024, energy bills will increase by around 10% to an average of £1,717. Obviously for people in Scotland, and even more so for those of us in the Highlands and Islands, this will be an even greater amount.
The next Ofgem price cap will be announced at the end of November 2024 to take effect from 1 January 2025. Energy bills remain at levels 65% above 2021, but people have less ability to pay these high prices as the cost of living crisis continues and energy debt reaches new highs.
Britain’s broken energy system continues to cause misery, with fuel poverty affecting many of the most vulnerable. Over 8 million adults lived in cold damp homes and official figures showed that cases of hypothermia surged and every year we see deaths caused by living in cold homes. – End Fuel Poverty Coalition
Energy Films Profit Tracker States: As of 11 June 2024, energy firm profits have amounted to just under £427 billion in profits since the energy crisis started. An estimated £34 billion of these profits (the equivalent of over £1,153 per household) are thought to be made by the firms and business units responsible for electricity and gas transmission and distribution. These are the “network costs” consumers pay for maintaining the pipes and wires of the energy system and are usually paid for through standing charges on energy bills. Standing charges have risen 147% in recent years for electricity and 15% for gas.
On 4th of July 2024, 35.3 % of the Scottish electorate (851,897 votes) chose Labour and believed in their slogan of Change. They put their trust in 37 Labour MPs to deliver on the promises they made. The SNP on 30% of the vote ( 724,758 votes) lost 39 seats and was reduced to 9 MPs, just above the LibDems with 6 and the Tories with 5. These 37 Labour MPs have supported both the retention of the Rape Clause and the cuts to the Winter Fuel Payments to pensioners. If the people who voted Labour in Scotland in July did so expecting Change then this winter will be a bitter and cold wake up call for them. The most vulnerable in our society will suffer the continuation of policies introduced by the Tories and which Labour are continuing with.
Fiona Grahame
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