Mods Assignment

• Impact of the cost-of-living crisis on lower income families in the UK:
• Many families face food insecurity due to the cost-of-living crisis
• In Scotland, 1/6 of adults (17%) have faced food insecurities, leading to insufficient access to food
• This results in many adults not being able to afford sufficient food, leading to starvation
• Many low-income households are unable to afford to heat their houses
• In Edinburgh, 21k Midlothian Adults were unable to afford to heat their homes in 2019
• This indicates that many adults lived in poor conditions due to the inability to live comfortably
• Many families in low-income households are not receiving the national minimum wage
• According to the ONS, there were 115k jobs held by full-time employees (0.6% of jobs in this group) with pay less than NMW
• The rate of inflation on low-income families can lead to a rise in crimes such as stealing and drugs
• Government statistics showed that 31% of people arriving at jail were from the 10% most deprived areas in Scotland
• Scotland has opened many food banks to help alleviate financial stress on food
• Scotland has added £200 million to help tackle the poverty-related attainment gap
• Taxation in Scotland is higher than in England, with a tax rate of 21% for £12k earners
• There are 3 actions that the government could take to tackle the cost-of-living crisis in low-income households. By creating more jobs for people to work in, increase or make sure that the wages are not under the minimum and increase benefits to support those who cannot work.  
• Increasing benefits helps low-income families face the cost of living by providing financial resources for basic needs like food, housing, and healthcare
• Government increasing benefits directly contributes to reducing poverty
• Increased benefits allow families to stay under a roof, preventing homelessness
• UK is raising working age benefits to 10.1% to mitigate the impact of inflation
• Increasing benefits can have a positive impact on children in low-income households
• 22.6 million people in England, Scotland, and Wales were claiming benefits in August 2023
• Children may experience improved physical and mental health and better education outcomes
• Increasing household income can reduce differences in schooling outcomes and improve children's well-being
• Families can spend more on children's extracurricular activities
• Increasing benefits helps low-income households secure stable housing and reduces the risk of homelessness
• More benefits provide greater financial stability for families
• Families can afford bills and feed their families with increased benefits
• Jeremy Hunt, the Chancellor of the Exchequer, is considering support options to help people during the cost-of-living crisis
• Government efforts can have an immediate impact on preventing and ending homelessness
• Increasing government benefits can lead to potential fraud and abuse
• 4% of state benefits in the UK were given to people who were not entitled to them
• Fraudulent claims can prevent those in genuine need from receiving the financial support they require
• This situation can result in many families facing financial struggles
• Increased fraudulent claims may contribute to a rise in the number of people living in poverty
• Increasing wages can financially help lower-income families
• It gives them a chance to heat up and afford to make food
• It can help with the wealth gap in Scotland by giving low-income families a chance to spend money on necessities
• Poorer households tend to spend more of their income on housing than richer households
• Jeremy Hunt stated that the earnings of full-time workers would rise by £1,800 a year due to a move that met the 2019 Conservative pledge to end poverty pay in the UK
• This shows that the UK is taking steps to tackle poverty by increasing the wage