Social Security Payments On Track Despite Delays
22nd May 2018
Social Security Minister Jeane Freeman has written to the UK Secretary of State for Work and Pensions Esther McVey for the third time to complain about her department reneging on agreements.
This latest letter follows notification from the DWP that they would no longer be able to meet formal agreements made on the 9 March to provide important data on carers. Ms Freeman expressed her frustration that this means that not all carers will be able to receive payments at the same time but confirmed the bulk of carers will still be paid later this summer and that all payments will be backdated to April.
This exchange follows correspondence where Ms McVey advised of delay in the jointly-agreed work required on Universal Credit in order to abolish the bedroom tax in Scotland. Ms Freeman has also written to Ms McVey highlighting a four-month delay in the supply of essential software code from the DWP to the Scottish Government.
Ms Freeman said:"It is frustrating that the Scottish Government is all set to make Carers Allowance Supplement - our first social security payments - later this summer benefiting more than 70,000 carers but a delay from the DWP could means 0.04% carers experience a delay.
"However any carer who does not receive a payment due to the DWP failing to provide the necessary information to the Scottish Government, will receive their payment as soon as the Scottish Government is notified by the DWP of the details.
"In order to deliver, Scottish Government officials have been working to ensure the DWP understands our plans and requirements. However, we are repeatedly reaching agreements to then have the DWP to roll back on them. I am seriously concerned that if this continues that there could be delays due to the DWP moving goalposts.
"It is vital for our planning to know that the DWP has a parallel plan in place and that it is on track with the extensive work that it needs to undertake to facilitate a safe and steady transfer of benefits. So I am - again - urging the Secretary of State for Work and Pensions to ensure that her department has plans and that these are given priority."
Social Security Secretary Angela Constance announced the first payments that will be made by the new Social Security agency. From summer 2018, Carer's Allowance, one of the eleven benefits devolved to the Scottish government, will be paid at an increased rate. The new agency, Social Security Scotland, will have responsibility for delivering 11 devolved benefits to 1.4 million people a year, worth around £3.3 billion.
Scotland's new social security agency administrative office will have its headquarters in Dundee, bringing hundreds of jobs to the city.
There will also be an office in Glasgow, and between the two locations, it is expected that at least 1500 jobs will be created, shared evenly between the two cities.
In addition to these head office and central admin facilities, the agency will also have a local presence with additional staff working across the country. This is to ensure that applicants have more localised support, and that the economic benefit and jobs are also spread across all parts of Scotland.
The initial tranche of staff recruitment will be around 250 by summer 2019, to deliver the first benefits - Carer’s Allowance Supplement, the new Best Start Grant and Funeral Expenses Assistance.
The problems of dealing with a huge section of the population whether in Social Security or income tax are often shown up in delays. Changes to they system or new computer software can often lead to delays due to unforeseen problems. Contractors supplying systems inevitably are more optimistic to win contracts and the delays can pile up as they encounter unforeseen issues or government demands changes halfway through. Older people will recall the years of problems at the tax centre for PAYE in East Kilbride. Centre One in East Kilbride was supposed to be the first of several centres around the UK but the programme was finally abandoned after years of ridicule by the media especially the Sunday Post. The sense of frustration for the public and staff with the huge backlogs of mail and tax returns meant government had a hard time. Let us all hope as tax and social security comes to Scotland the delays and problems are not subject to the same issues. Tax offices in East Kilbride are scheduled to close under a UK programme with HMRC closing the Plaza Tower in 2021 and Centre 1 by 2026. The work may transfer to Glasgow and Edinburgh but this may change under Scottish Government.
In 2012 Revenue Scotland was formed and on 1 April 2015 it took HMRC responsibility to collect devolved taxes in Scotland. On 12 November 2015 HMRC proposed to close 137 local offices and replace them with 13 regional centres by 2027.
