Hunger and hardship costs Scotland £5.6 billion a year, charity claims

Campaigners have spoken out about the “huge impact” of hunger and hardship as a report estimated the problem costs Scotland’s public finances and economy some £5.6 billion a year.

In the wake of its findings, the charity Trussell urged First Minister John Swinney to take “bold and decisive action” in his programme for government next week.

It insisted that both the Scottish and UK governments have a “moral and economic responsibility to act” on the problem of hunger and hardship – classing people as suffering from this if they are more than 25% below the poverty line, as set by the Social Metrics Commission.

Trussell has now urged the First Minister to increase the Scottish Child Payment – which currently provides low-income families with £27.15 a week for every child under 16 – to £40 a week for each child.

This would lift 84,000 people in Scotland out of hunger and hardship, the charity said, and would reduce the overall costs to the economy, public services and the public purse by £435 million.

It comes as Trussell said that the failure to tackle hunger and hardship leads to the Scottish Government spending an additional £860 million a year on public services such as the NHS, schools and children’s social care.

The analysis, carried out by experts at WPI Economics, found that reduced employment and lower productivity linked to hunger and hardship costs the economy some £2.9 billion a year.

In addition it said the public purse loses more than £1.4 billion in tax revenues a year because of the problem, with additional social security spending of £405 million needed as a result of people facing hunger and hardship.

As well as calling for action from the Scottish Government, it said the UK Government must urgently rethink cuts in support for disabled people, and update the universal credit benefit so it “protects people from hunger and hardship”.

Introducing an essentials guarantee – a policy the Scottish Government has pressed Westminster to introduce so there is a guarantee that those on benefits receive enough cash to meet essential costs – would lift 204,000 people out of hunger and hardship in Scotland, Trussell said.

It added that abolishing the two child limit on some benefits, which the Scottish Government has pledged to do in 2026, would remove 27,000 people from this situation – saving the economy, public services and the public purse £115 million.

Cara Hilton, senior policy and public affairs manager at Trussell in Scotland, said its research “demonstrates the huge impact of hunger and hardship on Scotland’s public services, and the cost of failing to act”.

Making an appeal ahead of Mr Swinney unveiling his government’s plans for the coming year on May 6, she stated: “The Scottish Government has significant powers to turn the tide on hunger and hardship and must take bold and decisive action in the programme for government next month, so no one else has to experience hunger and hardship under their watch.

“Not only is it the right thing to do, it’s common sense for our economy. Scottish and UK governments have both a moral and economic responsibility to act. There is no time to lose.”

A Scottish Government spokesperson said: “We know there is more to do, however, our policies are having to work harder than ever to make a difference, against a backdrop of a continuing cost-of-living crisis, rising energy costs and UK Government decision-making, all of which is increasing poverty and hardship for many families.”

The spokesperson said that the “cash first” approach the Scottish Government has adopted as part of efforts to tackle food insecurity “enables people to choose the essentials they need whilst maintaining dignity”.

The UK Government has also been contacted for comment.