The number of destitute Scots will more than double as a result of Brexit and the coronavirus.
According to a new report, around 7 per cent of the population will be facing extreme poverty by 2022, earning less than £70 a week.
The study by the National Institute of Economic and Social Research has analysed the impacts of the coronavirus, combining all the government job schemes, alongside the impact of a Free Trade Agreement Brexit.
Researchers say that the number of people destitute is set to rise from around 3.6 per cent this year to more than 7 per cent, however in 12 of the country’s 18 regions the rate will be above 7 per cent.
Scotland is one of the hardest hit areas, with the percentage of people facing financial hardship rising by 124 per cent between now and 2022.
By then, between seven and eight per cent of Scots are predicted to have an income so low that they will struggle to afford basic life essentials - shelter, food, heating, lighting, clothing or footwear and basic toiletries.
Researchers say their report is based on having an income of £70 or less per week, with adults needing an extra £30 and children an extra £20 to afford basic essentials.
Professor Adrian Pabst, NIESR Deputy Director, said the worst-affected areas will be those which have already “struggled for decades”.
He said: “Covid-19 is having devastating consequences for the poorest people in our society.
“Reinforced by the November lockdown, the pandemic will lead to a significant rise in levels of destitution across the country, particularly in places that have struggled for decades.
“Public policy targeted at the most disadvantaged people is needed to avoid deep social scarring.”
Citizens Advice Scotland (CAS) said that the rising number of destitute people does not have to be an “unavoidable consequence” of the current crisis, and called for action to prevent long-term consequences.
CAS Social Justice spokesperson Mhoraig Green said: “This is an important report that shows the huge impact Covid 19 is having on our economy and on household budgets.
“Across the Citizens Advice network in Scotland we’ve seen a rise in demand for employment advice,and the uncertainty around the furlough scheme in recent weeks may have put more jobs at risk.
“What we see from our data is a cycle of poverty. People can’t get the income they need to meet their living costs through employment or the social security system,face increasingly challenging choices on bills,and risk falling into deeper debt as a result.
“Increasing numbers of people falling into destitution should not be seen as some unavoidable consequence of the pandemic.
“There needs to be a twin approach which boosts incomes through fair work and the social security system while tackling living costs for people."
A UK government spokesman said: "This government is wholly committed to supporting the lowest paid families and has already taken significant steps including raising the living wage, ending the benefit freeze and increasing work incentives.
“During this challenging time we have provided £9.3 billion extra welfare support to help those most in need, as well as introducing income protection schemes, help for the self-employed, mortgage holidays and additional support for renters. We constantly keep these measures under review.
“Meanwhile, Scotland has significant welfare powers and can top-up existing benefits, pay discretionary payments and create entirely new benefits in areas of devolved responsibility.”
A Scottish Government spokesperson said:“The Scottish Government has already taken exceptional measures in every area of government to deal with the challenges of COVID-19, and that is particularly clear in the support for local services, this research shows the threat to our communities that EU exit poses, in the midst of a global pandemic, and we will continue to do everything we can to mitigate against the consequences of this.
“We are very aware of the financial impact the coronavirus crisis has had on many families, and the way in which it has exposed and expanded existing issues across the welfare system, and within Universal Credit in particular. That is why we have continually called on the UK Government, which has responsibility for all income-related benefits, to reverse welfare cuts which are hitting harder than ever, and to make fundamental alterations to Universal Credit including retaining the temporary £20 increase, removing the benefit cap and scrapping the two-child limit. It is not too late for the UK Government to do the right thing and ensure that social security support is adequate to support people during, and beyond, this time of crisis.
“Last year we invested £1.96 billion to support low income families and we are committed to progressive policies such as free tuition, free prescriptions, fair social security, and increasing free child care hours. Next week we will open applications for the game changing child payment for eligible children under the age of 6, with the first payments being made from the end of February, which will help us to tackle poverty head on.
“We have provided an unprecedented level of support during the pandemic, backed by an initial £350 million Communities funding package to ensure support for those most in need. This includes distributing an additional £22 million to local authorities to meet demand for the Scottish Welfare Fund, providing £20 million of flexible funding to tackle financial insecurity over the Winter months and increasing support for people in rented housing. We have made over £130 million available to tackle food insecurity during the pandemic, including over £10 million to continue Free School Meal provision during holiday periods right through to Easter.”
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