An additional £10 million will be redirected to provide urgent help for families struggling with the cost of living, after the Scottish Government confirmed emergency funding originally set aside for two-child limit mitigation will be reinvested to tackle child poverty.
First Minister John Swinney confirmed the funding for 2025–26 will instead support families facing crisis, with the majority of the money channelled through charities and programmes with established routes to deliver immediate help.
The largest share includes £5.5 million in extra funding for the Scottish Welfare Fund, which is administered by local authorities and provides emergency grants for people on low incomes experiencing crisis, homelessness or significant housing or caring pressures.
Additional funding will also go directly to frontline children’s charities, with £550,000 allocated to Aberlour Children’s Charity, £1.5 million to Children First, and £1.5 million to the Corra Foundation to distribute emergency support through trusted local organisations.
A further £1 million will support national child poverty initiatives, including parental employability programmes, support to help women return to work, additional investment in The King’s Trust NHS employability schemes, and targeted assistance for households affected by homelessness.
Speaking while visiting Children First, the First Minister said:
“When I became First Minister, I said that I will pursue priorities that will make Scotland the best our country can be, and the most important priority that I have pursued in government has been that of eradicating child poverty.
“We have made progress.
“Scotland is the only part of the UK where relative child poverty rates fell in the last year.
“Our investment in a more dignified and generous social security system, funded childcare, free school meals and free bus travel for under-22s is putting more money in families’ pockets.
“However, as we start 2026, there are still far too many children in Scotland growing up hungry, or cold, and unable to reach their full potential.
“That is unacceptable.
“Today’s announcement will provide some immediate short-term relief for individuals and families facing the most challenging of circumstances.
“Our local authorities and charities have well-established means of getting support out quickly to people in need.
“Next week we will set out in more detail our intention to put tackling child poverty at the heart of the next Scottish Budget and I look forward to unveiling landmark interventions to drive this work forward.”
Mary Glasgow, Chief Executive of Children First, said:
“These funds from the Scottish Government will allow Children First to offer life changing and immediate support to thousands of children as part of the national mission to eradicate child poverty.
“Through our national support line we will be able to reach more children and families to offer the financial, practical and emotional support they need to improve their circumstances and tackle the hardships they face in the short and longer term.
“Any family in Scotland in need of help can contact Children First’s friendly, specialist support line team 365 days a year by calling 08000 28 22 33 or starting a web chat at www.childrenfirst.org.uk/supportline.”
Chief Executive of Aberlour, Justina Murray, said:
“We know that families living in poverty particularly struggle with the cost of living during the winter months, with the post-Christmas period particularly challenging and often very bleak.
“This additional funding will be used to provide emergency cash grants via our Urgent Assistance Fund to families in desperate need for essentials like heating, food, warm clothing and bedding.”
The funding is expected to reach thousands of households across Scotland, providing immediate relief during one of the most difficult times of the year.
