Scottish welfare powers

The Scotland Act 2016 gives the Scottish Parliament powers over benefits falling within certain categories (see the table below).  The Scottish Parliament will have the power to determine the structure and value of these benefits, or replace these existing benefits with new benefits, in line with the legislative framework.

In addition, other powers are devolved:

• An expanded power to provide Discretionary Payments and Assistance (beyond the powers under which the Scottish Welfare Fund is currently delivered)
• The power to top-up reserved benefits
• The power to create other new social security benefits (other than pensions) in areas not otherwise connected with reserved matters
• The power to legislate for Welfare Foods
• Powers to vary the housing cost element of Universal Credit for rented accommodation and change payment arrangements for Universal Credit

The Scottish Parliament also has powers over support for unemployed people through employment programmes.

Total expenditure on the benefits to be devolved to Scotland is forecast in 2017-18 to be approximately £2.9 billion, or around 15% of total expenditure on benefits in Scotland (Social Security (Scotland) Bill Financial Memorandum, SP Bill 18-FM, para 10).

Information on the scope of the new powers can be found in Part 3 of the Scotland Act 2016 and the accompanying Explanatory Notes.  The Scottish Parliament Information Centre (SPICe) has also produced a briefing, New Social Security Powers, SPICe briefing SB 16-45.

Scottish Government actions

Information on the Scottish Government’s plans in respect of the new social security powers can be found on the Social Security pages of its website.  The Scottish Government says that it intends to use the new powers “to create a Scottish social security system based on dignity, fairness and respect, which will help to support those who need it, when they need it.”  Its top priority is “…to ensure the safe and secure transition of the 11 benefits for the 1.4 million people who rely on them.”

The Scottish Government summarises the actions it is taking as follows:

We are:

• designing a social security agency with a strong local presence across Scotland

• engaging with organisations, and people with experience of receiving benefits, to build a social security system that works for them

• improving benefits for carers by increasing the Carer’s Allowance and introducing a Young Carer Grant

• delivering the Best Start Grant by summer 2019 to increase support for low-income families with young children

• delivering the Funeral Expense Assistance benefit by summer 2019 to provide critical financial support to people at a difficult time

• improving benefits for disabled people and people with ill health, and confirming that no assessments will be carried out by the private sector

• working with the Department for Work and Pensions to introduce flexibilities to the way Universal Credit is paid

• paying some income-related benefits, such as grants from the Scottish Welfare Fund and Discretionary Housing Payments

• providing help with heating costs and extending the Winter Fuel Payment to families with severely disabled children

• campaigning to maximise benefit take up

Social Security (Scotland) Bill

The Social Security (Scotland) Bill was introduced in the Scottish Parliament on 20 June 2017.  The Bill sets out the framework of a new Scottish social security system, and the principles that will underpin it.  This will be used to deliver the social security benefits devolved by the Scotland Act 2016, once a new Scottish social security agency has been set up.  The Bill completed Stage 2 on 1 March 2018.

The Bill, together with policy statements and explanatory notes, can be found on the Scottish Parliament website.  Further background can also be found in the SPICe briefing on the Social Security (Scotland) Bill (SB 17-57, 31 August 2017).

The Scottish Parliament’s Social Security Committee has also been scrutinising the Bill.  Its Stage One Report on the Social Security (Scotland) Bill was published on 11 December 2017.  The Scottish Government response to the Committee’s Stage One report was published on 15 December.