Benefits changes announced in the Scottish 2026 Budget
2 mins read
Friday 16 January 2026
This news story applies to families in Scotland only.
On Tuesday, Finance Secretary Shona Robison announced the Scottish Budget for 2026/7.
Below we’ve highlighted the key changes that families with disabled children or children with additional needs should know about.
Benefit changes
- The Scottish Child Payment – payable to parents in receipt of certain benefits – will increase to £28.20 a week per child from April 2026, in line with inflation (up from £27.16.)
- From 2027, the rate will rise to £40 for families with children under the age of one.
- As announced in the UK Budget in November, the two-child limit in the child elements of Universal Credit will be abolished from April 2026.
- £7 million of funding in Discretionary Housing Payments (DHPs) to mitigate the effects of the benefit cap and bedroom tax. (This is for families who will not see an increase in payments after the removal of the two-child limit in Universal Credit). Where a member of the household receives a disability benefit, they will be exempt from the benefit cap).
Tax changes
- A tax cut has been provided to some low earners. The basic (20%) rate, which currently starts at £15,398, will increase to £16,547. The intermediate rate (21%), which currently starts at £27,492, will increase to £29,526.
Education
- A pledge to deliver breakfast clubs in all primary and additional support needs schools from August 2027. Schools will receive funding to provide up to an hour of supervision in the morning, helping parents to manage childcare around work.
- Additional funding will expand wraparound childcare, including after-school and holiday provision, with the aim of supporting parents to enter or stay in work while reducing childcare costs.
- A “Summer of Sport”, including free children’s sport and swimming lessons for every primary school pupil.
