Scottish Gov announces £350m funding package

An additional £350 million will go to those most affected by the coronavirus (COVID-19) pandemic.

The funding will be made available to councils, charities, businesses and community groups, and is designed to be flexible, cutting down on red tape to enable them to respond swiftly.

The emergency funding package will be allocated to existing funding streams through several new funds, with the £95 million package direct to local authorities made up of:

• £50 million in Barnett consequentials from the UK Government’s hardship fund is being passed direct to local authorities to support their own local resilience, support and hardship plans.
• £45 million will be added to the existing Scottish Welfare Fund which makes Community Grants and Crisis Grants available to those in immediate need. They will be given more flexibility in how it is used to ensure they can fully support people in financial crisis, including workers in the ‘gig economy’.

In addition:

• a £70 million Food Fund will help organisations in the public, private and voluntary sectors address issues of food insecurity, especially for older people, and families who may not be able to rely on free school meals.
• a £50 million Wellbeing Fund will help charities and others who require additional capacity to work with at-risk people who may be worst affected by the crisis, including homeless people and those experiencing fuel poverty.
• a £40 million Supporting Communities Fund will be used to support the rapidly growing and inspiring community efforts at a local level which will be vital to national resilience, including supporting people at risk because of age, isolation, carers, homeless people and asylum seekers and signposting people to sources of help such as applying for benefits.
• £50 million will go to meet an anticipated increase in applications for the existing Council Tax Reduction Scheme and Scottish social security benefits.
• £20 million will be allocated to a Third Sector Resilience Fund, to help ensure the health and continued viability of the third sector organisations affected by cash flow and other problems, which have a key role to play in our national response.
• £25 million will be kept in reserve to allow swift and flexible responses to rapidly changing circumstances.

Ms Campbell said: “This pandemic will disrupt lives like never before and cause financial hardship and negatively impact on our wellbeing. Be assured, however, that protecting and supporting people during these unparalleled times is the absolute focus of this government.

“Our funding package will be focused on delivery, not bureaucracy or red tape. Local authorities, local businesses, community groups and the third sector know and understand the support needs of their communities the best. Where people and organisations have solutions or ideas, I want to hear them.”

“Unless we work with local partners the impact of our investment will not be felt by those that need it most. So my message today is — if we can help you to help the people of Scotland then we will.”