SNP's 'Freebie' Policies Cost Over £5 Billion Annually, Report Finds
A review questions the effectiveness of universal benefits in tackling poverty, suggesting a combination of approaches may be needed.
The Scottish National Party's (SNP) universal benefits and services are costing over £5 billion annually, with a report indicating no definitive proof that these initiatives are more effective at combating poverty than targeted measures. The findings come from a report by the Poverty and Inequality Commission, an advisory body established by SNP ministers.
The commission assessed the costs associated with a range of "freebies," including free prescriptions, childcare, tuition, and bus passes. The most significant expenditure is £1.8 billion per year on free prescriptions, followed by £1.1 billion for 1,140 hours of free childcare and £1 billion for free personal care. Additional costs include £473 million for free bus passes for specific age groups, £288 million for university tuition, £278 million for primary school meals, £145 million for eye exams, and £8.8 million for the baby box scheme.
The report concluded that there is no singular answer to whether universal or targeted approaches are superior in reducing poverty. Instead, it recommended a combination of both, tailored to specific policy areas and desired outcomes, ensuring support is sufficient to make a tangible difference. The commission emphasized that these decisions should be part of a coherent strategy with necessary trade-offs.
An analysis for the commission by the Fraser of Allander Institute at Strathclyde University found that while free school meals, funded childcare, and free bus travel disproportionately benefit lower-income households, free prescriptions and eye tests benefit families more equally. The analysis also noted that claims about Scottish taxpayers paying less income tax than those in the rest of the UK are based on earnings forecasts that are subject to change.
Scottish Conservative finance spokesman Craig Hoy criticized the cost of these policies, stating that Scots are facing the highest taxes in the UK to cover what he described as a "£5 billion black hole." He urged ministers to ensure flagship policies deliver value for taxpayers. A Scottish Government spokesperson stated that eradicating child poverty remains a defining mission and welcomed the report's acknowledgment of the importance of both universal and targeted approaches. The spokesperson highlighted ongoing actions, including a national breakfast club offer and increased Scottish Child Payment, and called on the UK Government to match these efforts by removing the benefit cap and housing benefit freeze.