Minimum Income Guarantee – Scottish Government dialogue
LITRG welcomes the opportunity to make a submission to the Scottish Government’s dialogue on a Minimum Income Guarantee (MIG). Our response focuses on some of the key considerations in relation to the tax and benefits systems and their interactions. We also examine some of the funding options available to the Scottish Government under the current devolution settlement.
The Scottish Government describes a MIG as an assurance that no one will fall below a set income level that would allow them to live a dignified life. The idea would be to deliver a MIG through a variety of means, including employment, support and services provided by the state, and targeted welfare payments.
We emphasise the need for the Scottish and UK Governments to work together if Scotland is to introduce a MIG. We also discuss the need to think about administrative and operational matters at an early stage of policy development. In terms of funding, existing devolved tax powers do not offer much scope for raising additional revenues. But the reform of council tax, so that it is more progressive, might in itself assist with ensuring a minimum income level.
Read the full response here.