In order to prioritise the response to coronavirus, and to ensure that the Government’s main focus is on supporting jobs, Chancellor Rishi Sunak has announced that he will be conducting a one-year Spending Review for 2021-22.
Ordinarily, the Government would conduct a three-year Spending Review, but it is felt that this is just not possible at present, although the Government would have ideally liked to discuss plans for the rest of the Parliament. The one- year Spending Review will set out resource and capital budgets, alongside the Devolved Administration’s block grants for 2021-22.
The Spending Review will centre on three key areas:
• Providing departments with the certainty required to tackle coronavirus, and to deliver the Government’s Plan for Jobs, to support employment • Providing vital public services with the support they need to continue to fight the virus whilst still delivering first class frontline services • Investing in infrastructure to deliver on plans made to level up the country, drive economic recovery and Build Back Better
It has been confirmed that the Spending Review will take place in the last weeks of November, and speaking on the topic, Rishi Sunak said:
“In the current environment its essential that we provide certainty. So we’ll be doing that for departments and all of the nations of the United Kingdom by setting budgets for next year, with a total focus on tackling Covid and delivering our Plan for Jobs. Long term investment in our country’s future is the right thing to do, especially in areas which are the cornerstone of our society like the NHS, schools and infrastructure. We’ll make sure these areas crucial to our economic recovery have their budgets set for further years so they can plan and help us Build Back Better.”
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Over 50,000 parents have now applied for the new Scottish Child Payment 12 January 2021
Back in January 2020, the CIPP reported that the Scottish Government was intending to use its devolved powers to offer a new £10 per week, per child benefit for children in lower income families. It has now been confirmed that 56,000 applications were received between 9 November 2020 and 3 January 2021. The payment will be available for certain children under the age of six, and the new Scottish Child Payment will open on 15 February 2021. Parents are being advised to apply now to ensure that they do not lose out on any of the money that they may be entitled to. The benefit provides eligible families who are on tax credits or certain benefits with an extra £40 every four weeks for each child who is under the age of six. For those who apply prior to 15 February 2021, their payment will be calculated from 15 February 2021 but for those applying after that date, the payment will be calculated from the date that they apply. This additional payment for families with young children on lower incomes is only available in Scotland, and not the rest of the UK, and the Scottish Fiscal Commission have estimated that the payment could help to financially support anything up to 194,00 children this financial year. The Scottish Child Payment is a new benefit that is an addition to Child Benefit, which is offered UK-wide. When used in conjunction with the three Best Start Grant payments and Best Start Foods, the Scottish Child Payment could provide families with a maximum of £5,200 by the time their first child turns six.
Shirley-Anne Sommerville, Social Security Secretary, said:
“This is a great response to our new payment. The Scottish Child Payment is the most ambitious anti-poverty measure currently being undertaken anywhere in the UK but there are many more families out there who are entitled to this support and we want to make sure that they get every penny that they are due. That’s why we are asking people to get their application in early so that their payments will be calculated from the first day the payment starts.
Almost 60% of all children in poverty live in a family where a child is under six so I am proud we are able to introduce it early for families with young children before we roll it out to children under 16 in 2022.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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