Yousaf’s new tax band could lift 20,000 children out of poverty

The IPPR analysis says thousands of families could benefit if the money went towards increasing Scotland’s child benefit.

During the SNP leadership campaign, Mr Yousaf proposed a new tax band for those earning more than £43,662.

IPPR modeled a similar proposal and found it generated an additional £257m for the public purse.

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The think tank said this would be enough to increase Scotland’s child pay to £40 a week, which could lift 20,000 children out of poverty.

So far, 40,000 children are said to have benefited from the new social insurance.

IPPR Scotland Director Philip Whyte said: “Lifting 60,000 children out of poverty in Scotland is not only morally right but would ensure Scotland meets its interim child poverty target for the coming year and a clearer path towards ours set final targets in 2030 .

“But political will, investment and action are needed.

“While we cannot see any change in tax rates until the next budget, it shows what is possible – but neither should it stand in the way of acting quickly where we can now, including further increases for the Scots child benefit.

“The evidence is clear: further progressive taxes in Scotland can loosen the grip of child poverty.

“Humza Yousaf made ambitious proposals to combat child poverty in his leadership meeting – he must now implement them in the government.”