Glasgow City Council today (22 June) approved the distribution of Covid Low-Income Gift Cards worth £105 to around 85,000 low-income households in the city. This initiative aims to provide immediate financial relief while simultaneously boosting local businesses still recovering from the economic impact of the pandemic.
These cards can be used in registered businesses across Glasgow, with more than 700 businesses of all sizes already signed up. Additionally, nearly 400 small and medium enterprises (SMEs) are in the process of registering, ensuring a wide variety of options for cardholders. From independent grocers to local cafes, the scheme is designed to support the diverse range of businesses that form the backbone of Glasgow’s economy.
The council received £9.456 million from the Scottish Government for this project, sourced from the £80 million Covid Recovery Fund. This funding is part of the broader Scotland Loves Local campaign, which encourages Scots to support their local high streets and businesses. Out of the total allocation, £8.85 million will be directly used to distribute the gift cards, while £423,110 has been earmarked as discretionary funding to assist other groups affected by the ongoing cost of living crisis. The remaining funds will cover the administrative costs of implementing the scheme.
The Scotland Loves Local campaign has gained significant traction since its launch, promoting the importance of community-driven economic recovery. By focusing on local businesses, the campaign aims to create a sustainable model that benefits both consumers and entrepreneurs.
To identify eligible households, the council will use data from the council tax system, specifically targeting those entitled to Council Tax Reduction (CTR). This approach ensures that the support reaches those who need it most without requiring a separate application process. The pre-paid gift cards will be sent directly to eligible households throughout July, streamlining the distribution process and reducing unnecessary bureaucracy.
Currently, 780 businesses in Glasgow are registered to accept the gift cards, and the council is actively encouraging more businesses to join the scheme. This includes reaching out to SMEs, which often face greater challenges in accessing financial support compared to larger corporations.
The Covid Low-Income Gift Cards will be administered by Miconex, the delivery partners for Scotland’s Towns Partnership. To enhance security and reduce the risk of theft, the cards will require activation. Recipients will need to enter their Scotland Loves Local Gift Card and National Insurance numbers on a dedicated website. If the details match the records held, the balance will be immediately uploaded to the card. This two-step authentication process ensures that the funds are securely allocated to the intended recipients.
The council has also established a robust support system to handle enquiries from residents, ensuring that any issues or questions are addressed promptly and efficiently.
Councillor Susan Aitken, Leader of Glasgow City Council, said: “The gift cards will give city businesses a much-needed lift following two years of the pandemic and the resulting impact on trade. But they also allow us to support tens of thousands of low-income households and individuals with practical assistance, something we hope can make a positive difference to them during the worst cost-of-living crisis in decades.”
She added: “While the number of businesses signed up to the scheme continues to grow, we’re still encouraging as many as possible – especially small and medium-sized companies – to sign up. We want local high streets across every one of Glasgow’s communities to benefit from this measure.”
This initiative comes at a critical time, as many households and businesses continue to grapple with the financial fallout of the pandemic and rising living costs. By combining immediate financial support with a focus on local economic recovery, the scheme aims to create a positive ripple effect across Glasgow’s communities.
If you’re a Glasgow resident eligible for Council Tax Reduction, keep an eye on your postbox in July for your gift card. For businesses, now is the time to register and take advantage of this opportunity to attract new customers and boost sales.
