Scotland benefits system: Calls for jobseeker's allowance to match maternity pay amid cost-of-living crisis

Calls for jobseeker’s allowance rates to be set by previous salary, as survey shows most Scots have no safety net in place for unemployment.

A left-wing think-tank has called for jobseeker’s allowance to be increased to the same rate as maternity pay, after finding very few Scots have a safety net in place should they be faced with sickness, caring or unemployment.

Research from the Scottish Fabians, funded by abrdn Financial Fairness Trust, argues the UK system does not provide adequate levels of income security or the support needed to transition back into the workforce.

A YouGov poll of 1,000 Scots found 31 per cent of Scottish workers say if they lost their jobs, they could only maintain their current standard of living from savings for four weeks or less.

The entrance to a Jobcentre Plus

A further 54 per cent said they expect to often struggle to make ends meet if they lose their job and 30 per cent expect to often have to go without food and heating.

Scottish Fabians national manager Katherine Sangster said: “Five years on from social security devolution, Scotland has not grasped the opportunities available from its new social security powers.

“Holyrood should not just be creating ‘a sticking plaster’ to counter the worst failings of the UK welfare system, but designing something better.

“We call on Scottish politicians to use the devolved powers to start to build a social security system that protects incomes when people have to leave a job, and is designed around principles of contribution, adequacy, and connection to work.”

The report calls on the Scottish Government to introduce a “job seeker’s supplement” to raise job seekers’ allowance to match maternity pay for the first six months of unemployment. It also asks for an “employment support supplement” for those on employment and support allowance to match maternity pay for the first 12 months after stopping work.

This would raise job seekers’ allowance depending on the newly-unemployed person’s most recent salary – similar to benefit schemes in France, Canada, and the UK’s pandemic-era furlough scheme.

Mubin Haq, chief executive of the Financial Fairness Trust, said: “The Scottish Government has made some attempts to improve our safety net, but major reforms are needed.”

“Change is supported by the public who back a series of measures to help those out of work. Immediate action can be taken now.

“Not only could this help prevent hardship but also help employers to keep their workforce.”