On 13th January, the Scottish Government announced how they will be spending their £68 billion budget during the 2026/2027 year. One of the central purposes of this budget is mitigating the cost of living crisis through welfare and tax reform. The Scottish Government identified four priority areas: eradicating child poverty, growing the economy, tackling the climate emergency and improving public services, with particular emphasis on NHS investment.

Below, we outline our analysis of the key decisions that will impact on young women’s lives.

Taxation: Changes in income tax and council tax, and the new private jet tax

This budget introduces significant changes to taxation, with a strong focus on mitigating UK government welfare cuts.

• Income tax: The Scottish Government will raise the Basic and Intermediate rate thresholds by 7.4% to support those with lower incomes. According to government projections, 55% of taxpayers will pay less in 2026-27, particularly benefiting those on lower incomes.
• Council tax: The Scottish Government will introduce additional council tax bands for high-value properties. This is a positive step forward, but Scotland needs is a complete overhaul of the outdates council tax system. We recommend a complete review that includes updating the market reference point (currently based on 1991 values) to reflect current market values and the revaluation of all properties in Scotland to create a fairer and more equitable tax system.
• Private jet tax: We also welcome introduction of a private jet tax, targeting some of the wealthiest individuals for their highly polluting journeys and reinforcing the government’s commitment to addressing the climate emergency.

These taxation changes will benefit some young women on lower incomes across Scotland. However, the essentialist understanding of economic wellbeing presented on the budget, fails to recognise care, housework and other forms of “women’s work” as crucial drivers for the Scottish economy that sustain of social infrastructure.  

Eradicating child poverty and investing in children’s safety and wellbeing

We welcome the £126 million investment in anti-child poverty measures. Several commitments deserve recognition, such as:

• The rise in the Scottish Child Payment (SCP) to £28.20 per week, and commitment to further increases from 2027-28. While we celebrate this progress, it remains insufficient. Third sector organisations have consistently called for the SCP to rise to £40 per week and this should be made available for all eligible children from birth.
• The commitment to ensuring every primary and special school has a breakfast club by August 2027.
• Additional investments to prevent and respond to child sexual exploitation, strengthening safeguarding and supporting early, trauma-informed intervention for children and young people at risk. 
• Funding to support the implementation of the Independent Care Review and the Children (Care and Justice) (Scotland) Act to improve outcomes for care-experienced children and young people.

We welcome these investments that combined will contribute to improving outcomes for children and young people across Scotland and encourage the Scottish Government to sustain this commitment long term to break cycles of poverty and inequality from childhood. We recognise that many young women are mothers, carers, and sisters who bear the responsibility of caring for children. When we invest in children’s wellbeing, we also ease the burdens carried disproportionately by women and create conditions where both women and the children in their care can thrive. Tackling child poverty contributes to tackling young women’s poverty.

Tackling barriers to employment

The budget recognises that the most sustainable path out of child poverty is achieving stable, fulfilling work for parents and carers. In order to contribute to improved employability outcomes, the budget includes:

• £20 million dedicated fund for third sector partners to deliver community-based employment support.
• £50 million to a Whole Family Support package to support parents into sustainable employment. 

• £90 million will fund employability services and access to high-quality childcare for all three and four-year-olds and eligible two-year-olds.
• A commitment to provide additional funding for the Real Living Wage in services across social care and childcare. This is a very positive measure, as these remain women-dominated industries. Consequently these improvements will benefit many women and may contribute to narrowing the gender pay gap.

While these investments are welcome, there is a lack of awareness about the gendered nature of the issues being tackled. Women make up 90% of single parents in Scotland and face the most significant barriers to employment. This reality should be explicitly acknowledged and addressed. In addition, the vital work that the third sector does in supporting women beyond employment and upskilling, including women’s and girls’ rights advocacy, tackling violence against women and girls, and promoting health and wellbeing receives no dedicated funding. This work brings immense value and improves quality of life for young women, and directly contributes to a more prosperous Scotland.

Educational opportunities for young people

The budget allocates £70 million to colleges, alongside extra investment in universities and a continued commitment to Scotland’s apprenticeships. We support investment in education, and call for an intersectional perspective on this issue, recognising the additional barriers to education and employment opportunities that young women face and allocating funds to tackling the gender gaps in education and training.

The climate emergency

The Scottish Government will invest:

• At least £5 billion to deliver a just transition to net zero and climate resilience, much of it in the offshore wind sector. 
• We particularly welcome £6 million dedicated to Community Climate Action Hubs that empower local communities to develop place-based responses to climate change.
• We were disappointed to see that international investment to support vulnerable communities (particularly women and young people) in the Global South has decreased by £1 million since last year, hindering Scotland’s contribution to climate justice.

As an organisation that views the climate crisis as an intrinsically feminist issue disproportionately affecting women and girls in the Global South, we believe just transitions are essential to securing a planet where future generations of young women can thrive.

Health and social care: Investing in the NHS

This budget sees record funding of almost £22.5 billion for health and social care, including:

• Over £17.6 billion for NHS Boards to invest in frontline services with the objective of reducing waiting times, improving GP access, and developing walk-in services.

We are hopeful this investment will improve health outcomes for everyone living in Scotland. However, the absence of specific spending on women’s and girls’ health is deeply disappointing, particularly as the new Women’s Health Plan for Scotland has just been released and it is essential to understand what resources will be committed to its successful implementation.

Concluding remarks: where are the young women?

We welcome this budget’s investments that will benefit young women, such as measures to tackle child poverty, commitments to increasing employment and educational opportunities and Real Living Wage funding in social care and childcare sectors. 

However, the lack of a gendered perspective in Scottish Government budgeting is alarming. The budget fails to acknowledge gendered inequalities that disproportionately affect young women: such as unpaid childcare, and the ongoing cost-of-living crisis. The only direct investment in women-specific measures is a fraction of the £11.5 million towards the Ending Homelessness Together fund, a portion of which will sustain the Fund to Leave scheme for women and children affected by domestic abuse. This singular commitment is insufficient given the scale of misogyny and violence women face today.

Significantly more investment is needed in equity policies and dedicated funding for areas that predominantly affect women. The Young Women’s Movement calls on the Scottish Government to integrate comprehensive gender analysis into all future budgeting decisions and to prioritise investments that directly address the barriers and inequalities young women face every day.

For more detailed gendered analysis of the Scottish Government 2026/27 budget consult the Scottish Women’s Budget Group’s briefing.