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Scottish budget 2026: What is it and how could it affect you

A man's hands handle a variety of Scottish bank notesImage source, Getty Images

The Scottish government have outlined its financial plans for the next year in the Scottish Budget.

The Scottish Budget is separate to the UK Budget when the UK government sets out its plans for how it will get and spend money.

The Scottish government has described the 2026 budget as a cost of living budget.

The country's finance secretary Shona Robinson says the 2026 budget will help families.

Keep reading to find out why Scotland has its own budget and how this one will affect children living here.

Why does Scotland have its own budget?

Shona Robinson, a white woman with grey/blonde hair pulled back, wears a pink jacket with a black and white patterned scarf. She is speaking into a microphone on a desk with MSPs behind her. Image source, PA Media
Image caption,

Finance Secretary Shona Robison announced the draft Budget to MSPs at the Scottish Parliament in Holyrood

Scotland has had a devolved government since 1999, when some powers were transferred over to Scotland to make some of its own decisions, separate to those made by the UK government.

The UK government is responsible for making decisions on defence, national security, foreign policy, immigration, citizenship and tax for England, Scotland, Wales and Northern Ireland.

Meanwhile the main powers of the Scottish government are:

  • Agriculture, forestry and fishing

  • Education

  • Environment

  • Health

  • Housing

  • Justice, policing and courts, including speed limits and railway policing*

  • Local government

  • Fire service

  • Economic development

  • Some transport

  • Taxes including income tax, stamp duty and air passenger duty

  • Some welfare powers

Scotland also has its own powers to raise and lower income tax.

School clubs

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Breakfast clubs

The Scottish government has pledged to set up breakfast clubs for every primary school and special school in the country.

Scotland's finance secretary Shona Robinson said it will make the morning rush to school "that little bit easier" for families.

She added it wouldopen up the opportunity for parents to "drop kids off earlier at school, perhaps open up new shifts at work.

"For some, families saving on the cost of breakfast. For others, the kids getting a breakfast they wouldn't otherwise receive, fuelling them to learn."

The extra £44 million per year will start from August 2027.

A boy with curly brown hair does a keepy-uppy in a school gymImage source, Getty Images

After school clubs

An extra £2.5 million was also announced to help provide more after school activities for children.

An additional £5.5 million will be invested in the Extra Time programme - a joint initiative between the Scottish government and Scottish FA.

The Scottish government said this additional funding will mean an extra 5,000 children will be able to access to play football before and after school, as well as during the holidays.

John Swinney, the First Minister of Scotland hopes the scheme will allow parents to work more easily and keep children healthy.

This is also due to come into place in 2027.

Financial support for families

A stack of coins sits in the foreground of the photograph. Behind, slightly blurred in the background, are paper cutouts of people. Two adults are in red with two yellow children either side. Image source, Getty Images

The budget set out plans to increase the Scottish child payment from £27.15 to £40 a week for babies under the age of one.

The Scottish child payment is a weekly benefit that is given to families who get certain help from the government like universal credit.

The change is due to kick in from April 2027.

First Minister John Swinney Mr Swinney said the Budget will "put in place the support that families need, all families need, at a time when income is under such pressure due to the rising cost of living".

What do people think?

A cartoon woman stands with her hand on her chin like she's thinking. There are purple question marks around her. Image source, Getty Images

Some charities say the budget doesn't go far enough to help families.

Director of Child Poverty Action Group in Scotland, John Dickie said:

"The promise to increase the Scottish child payment for babies under one is a positive step but won't kick in for over a year, and even then leaves the vast majority of children without any additional financial support."

Meanwhile Cara Hilton from the food bank charity Trussell said while increasing the Scottish Child Payment to £40 a week for families with a baby under the age of one was a positive step, "the payment isn't enough to prevent families with older children being forced through the doors of food banks."

But Claire Telfer from Save the Children said the charity are "delighted" with the budget. She said:

"We have been campaigning hard for targeted income increases for families with a baby under one when the impacts of tackling and preventing poverty can have the greatest impact.

"This is the bold action we have been calling for to meaningfully tackle child poverty and make sure every baby in Scotland has an equal chance to thrive."