1.8 million could fall into poverty under Westminster control

Independence key to sustained economic growth and fairer society

The SNP has said "Scotland needs the full powers of independence to deliver sustained economic growth and build a fairer society" - amid warnings 1.8million people in the UK could fall into relative poverty over the next decade, including one million children.

The report by the Resolution Foundation, published today, says "the UK has been living through a period of relative decline that has proved toxic for those on low-to-middle incomes". It warns poor economic growth, and a failure to fairly distribute wealth, could see poorer household incomes rise by only 2% over the next decade, compared to 12% for typical households and 14% for the those in the top income quintile - widening the the income gap between typical and poorer households from £18,000 to £21,000.

The report says this 'prosperity gap' is a result of the UK government's regressive approach to the benefits system, where amounts rise (at best) by prices rather than wages - meaning basic benefit support is at the same level now in real terms as it was in 1992, despite a 51% growth in GDP per capita since then. It warns this approach could see the Universal Credit standard allowance fall from 14% of earnings in 2025-26 to 12% in 2035-36 and 10% in 2045-46, compared to 17% in 2000-1.

Mike Brewer, chief economist at the Resolution Foundation, warned “Economic growth - the essential precondition for rising wages - is sorely needed after 15 years of stagnation. But it's equally important that this rising prosperity is widely shared" and called for “a strategy that delivers productivity growth alongside reforms to employment, pay, benefits and housing costs" - including predistribution through higher wages and redistribution through the benefits system.

Commenting, SNP Social Justice spokesperson David Linden MP said:

"The UK is in dire need of radical change but neither the Tories or pro-Brexit Labour Party are offering a genuine alternative - showing why Scotland needs to escape Westminster control with independence.

"Brexit, austerity cuts and Westminster mismanagement have set the UK on the path to long-term decline - with stagnant wages, poor economic growth, and worsening living standards.

"The SNP is the only party offering real change with independence. Scotland needs the full powers of independence to deliver sustained economic growth and build a fairer society.

"Rejoining the EU, and properly investing in Scotland's renewable energy powerhouse potential, is the only credible path to sustained economic growth. The SNP is the only party offering a route back to the EU and full control over Scotland's energy wealth with independence.

"The SNP government is leading the way with limited devolved powers; delivering progressive policies like the Scottish Child Payment, baby box, Best Start Grant, rent controls, free personal care, and other measures to build a fairer society - but progress is being undermined by Brexit, Westminster cuts and damaging policies that are making people poorer across the UK.

"The SNP will continue to press the UK government to introduce a real living wage, boost benefits and deliver urgent help for families - but independence is the only route to real change. At the next election, voting SNP is the only way to secure independence, tackle the cost of living and get rid of unelected Tory governments for good."