John Swinney makes payment guarantee to Scottish parents on two-child benefit cap

The Scottish Government pledged to mitigate the policy, which limits the number of children families can claim benefits for, in its Budget announced in December.

The policy is estimated to cost the Government £200 million a year by 2029, according to the Scottish Fiscal Commission, rising from £155m in 2026-27.

Benefits spending by the end of the decade, the forecaster said, would make up 14.9 per cent of the Government’s budget.

Mr Swinney said the payments would be in people’s accounts by this time next year. Asked if he could guarantee that will be the case, he said: “Yes.”

The change, which will only take effect in Scotland, requires data from the Department for Work and Pensions to identify those impacted by the cap.

“The principal issue is about data and that work is under way,” Mr Swinney told the Daily Record’s Planet Holyrood podcast.

“That co-operation is being taken forward to develop the systems.

“I recognise these things take time, which is why I think some of the calls that were made for us to deliver the benefit now, having just announced it in December, were completely ludicrous. We need to take time to get all the systems in place.”

Mr Swinney said he had “no issues” with the flow of data from the UK government department.

“We’re having a conversation about rather dry topics of data and data handling,” he said. “What it means is that it will help to lift children and families out of poverty.”

The First Minister has consistently named the eradication of child poverty as his driving mission. But he admitted that is not working as quickly as he wants after figures released last month showed the Government had missed its statutory target of reducing rates below 18 per cent by 2023-24.

“We’re seeing child poverty levels reduce in Scotland, but not reducing as fast as I would like to see them,” he said.

The guarantee on a timeline for payments came as the First Minister said the SNP may not necessarily be the favourite to retain the seat subject to a Holyrood by-election.

The Hamilton, Larkhall and Stonehouse constituency is vacant following the death of Government minister Christina McKelvie last month, with voters due to go to the polls on June 5.

The contest is expected to provide a snapshot of the political landscape in Scotland ahead of the Holyrood election next year, with polls showing a rapid decline in the fortunes of Labour since taking power at Westminster last summer and a potential Reform surge.

Ms McKelvie held the seat since 2011 for the SNP, but Mr Swinney said the party could not count itself as the favourite to win it.

Asked if the seat was the SNP’s to lose, Mr Swinney said: “I don’t think so … I don’t think by any stretch of the imagination is the by-election outcome clear.”