YOUR reports on the tax credits debate and the Scotland Bill debate (“SNP in U-turn over tax credit claims”, The Herald, November 5) and (“SNP and Labour clash over welfare powers and U-turn on tax credits”, The Herald, November 6) have failed to represent the full picture.
First, as I have repeatedly stated, the Scottish Government will use all our powers to protect the poorest in our society from the UK Government’s attack on low-paid families.
Secondly, unlike Scottish Labour, I will not let the Tories off the hook. The pressure is building on George Osborne to cancel these cuts and we must use all our efforts, across all parties, to ensure that he does.
It is however important to explain the detail, which Labour chose to ignore in its plans this week. The Scotland Bill as it stands, prevents the Scottish Parliament making top up payments to anyone who loses their eligibility to benefits. Around 30 per cent of those affected by these Tory cuts will lose all of their entitlement to tax credits. Without further amendment the Scottish Parliament is not able to make any kind of top up payment to those people.
There are two ways to improve the bill to do this. The first is the amendment the SNP group laid last Tuesday which would devolve the entire tax credit system to Scotland. It is surely better to have full responsibility than to be put in the position of having to deal, each and every year, with Tory cuts. The second - and I hope Westminster supports both - is for the UK Government to introduce the power for the Scottish Parliament to create new benefits in any areas - even where Westminster has removed people’s eligibility. The amendment the UK Government lodged on Wednesday afternoon - shortly before the Holyrood debate and after continued pressure from the Scottish Government and the Scottish Parliament’s Devolved Powers Committee, to allow new benefits presents us with other means to support those who will be affected.
As I set out to Parliament, once we hear the transitional details of the Chancellor’s changes in the comprehensive spending review and have a clear final version of the Scotland Bill, we will set out credible costed proposals to support low income households.
In the meantime our priority is to continue to call on the UK Government to prevent the cuts taking place in the first place.
Alex Neil MSP,
Cabinet Secretary for Social Justice, Communities & Pensioners’ Rights,
Scottish Government, St Andrew’s House, Regent Road, Edinburgh
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