An Overview Of Social Security In Scotland - Costs Are Increasing On The Scottish Budget

30th March 2023

This article by Leila Roberts at The Fraser of Allender Institute shows just how pressure is mounting on the Scottish Budget from a combination of factors. It remains to be seen whether the new First Minister and his team can navigate the years ahead when demand for the new benefits are soaring.

The devolution of certain social security benefits to Scotland has made social security has a priority for the Scottish government. In this briefing, we provide an overview of social security spending in
Scotland, including a discussion of what we learned in the recent Economic and Fiscal Forecasts, and how much expenditure on social security is expected to increase in the coming years.

The expenditure section includes a discussion of how much is spent on social security and how Scotland funds this. The demand section includes a brief overview of what's included within social security, examining both benefits new and unique to Scotland and those whose responsibility has been devolved, and how many people are utilising different services.

How does Social Security work in Scotland?
The Scotland Act of 2016 devolved responsibility for 11 existing benefits to Scotland, including the Disability Living Allowance, Personal Independence Payment (PIP), Attendance Allowance and
Severe Disablement Allowance. The UK government remains responsible for the benefits including Universal Credit, Child Benefit, State Pension and Maternity Allowance. The Disability Living
Allowance for Children has been replaced in Scotland by the Child Disability Payment, which was launched nationally on 22 November 2021. The transfer in administration of other benefits from DWP to the Scottish government will be staggered over time. This includes:
• PIP and Working Age Disability Living Allowance, which will be replaced by the Adult Disability Payment. This move began in August 2022 and will take until summer 2024.

• Cold Weather Payment, which will be replaced by the Winter Heating Payment starting February 2023.

• Attendance Allowance, which will be replaced by the Pension Age Disability Payment. The national roll-out of the Pension Age Disability Payment is expected to take place in 2025.

• Carer's Allowance, which will be replaced by the Carer Support Payment. The Carer Support Payment will be piloted by the end of 2023, and fully introduced in spring 2024.

How much does Scotland spend on Social security?
The future of social security spending

The latest forecasts by the Scottish Fiscal Commission estimate that social security spending will increase from £4.2bn in 2022-23 to £7.3bn in 2027-28. Social security spending was £3m higher in
2021-22 than the £3.68bn forecasted in December 2021. Social security spending is expected to reach £6.9bn in 2026-2027, £1.39bn higher than originally forecasted.

Read the full report HERE
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