A New Future for Social Security

Hopes for today A better understanding of the approach of the Scottish Government to Social Security and potential use of the new powers An appreciation of the potential to shape Social Security in Scotland An appreciation of the limitations to shaping Social Security in Scotland The material to make a response to the social security consultation Scotland Act 2016: Part 3, Section 24 Discretionary payments: top-up of reserved benefits – for individuals or for specific groups or for all claimants

Devolved Benefits Disability Benefits Carer’s Allowance Winter Fuel & Cold Weather payments Funeral payments Best Start Grant Discretionary Housing Payments Job Grant UC Flexibilities and Housing Element

Operational Policy Advice representation & advocacy Complaints, reviews and appeals Residency and cross border issues Managing overpayments and debt Fraud Protecting information Uprating

At the end of the day…. BUT We may not be able to change UK Government welfare changes ie Benefit Cap LHA cap Restriction of benefit entitlement BUT Can we use devolved powers to mitigate the worst effects?

Overview and the consultation Angus MacLeod, Scottish Government

A New Future for Social Security Consultation on Social Security in Scotland

Consultation on Social Security in Scotland Background Why is the Scottish Government Consulting? The UK Government is going to transfer responsibility for a number of social security benefits to the Scottish Government as a result of the Smith Commission and then the Scotland Act 2016 This consultation is the next stage in a process that began with Royal Assent for the Scotland Act 2016 and has continued with the publication, earlier this year, of the paper, A New Future for Social Security in Scotland , in which the Scottish Government set out the Vision and the principles which will guide the delivery of social security in Scotland Consultation on Social Security in Scotland

Context Benefits to remain reserved to the UK Government Benefits being devolved to the Scottish Government Universal Credit (which replaces Jobseeker’s Allowance, Income Related Employment Support Allowance, Working Tax Credits, Child Tax Credits and housing Benefit) Ill Health and Disability Benefits which means – Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Severe Disablement Allowance and Industrial Injuries Disablement Benefit State Pension and Pension Credit Carers Allowance Contributory Employment Support Allowance Sure Start Maternity Grants (which we propose should be replace by the Best Start Grant) Child Benefit Funeral Payments Maternity and Paternity Pay Cold Weather Payments and Winter Fuel Payments   Discretionary Housing Payments Some powers in relation to Universal Credit (i.e. to split payments between household members) Consultation on Social Security in Scotland

Consultation on Social Security in Scotland Context The UK Government currently spends around £18 billion on social security benefits in Scotland every year. The following diagrams show that the devolved benefits only account for about £2.7 billion or 15% of this spending. The remainder (£17.9 billion or 85%), remains under the control of the UK Government Consultation on Social Security in Scotland

Consultation on Social Security in Scotland Context Consultation on Social Security in Scotland

Consultation on Social Security in Scotland Context Consultation on Social Security in Scotland

Consultation on Social Security in Scotland The Journey so Far Summer 2015: Consultation as part of Fairer Scotland discussions September 2015: Announced that we would bring forward a social security Bill before the end of the first year of the next Parliament March 2016: Published our ‘Vision’ for the future of social security in Scotland, including five principles that will govern our decisions on policy and delivery March 2016: Published a report on Part 1 of our appraisal of the options for delivery of social security March 2016: Announced our intention to establish a social security agency Consultation on Social Security in Scotland

Commitments Already Made   Carer’s Allowance To improve the support we offer to carers by increasing Carer’s Allowance to the level of Jobseeker’s Allowance. Disability Benefits We will extend winter fuel payments to families with severely disabled children  and end the degrading DWP approach to disability assessments. We will maintain disability benefits and ensure they are not means tested.  We have also committed to Disability Benefits Assessment Commission to provide recommendations and guidance on how often assessments should be, what conditions should be given an automatic or lifetime awards, and eligibility criteria Universal Credit Universal Credit remains reserved to the UK Government, but we will use administrative flexibilities to pay direct to social landlords, and to offer fortnightly payments to recipients rather than monthly payments Consultation on Social Security in Scotland

Commitments Already Made Best Start Grant To extend the support currently offered by Sure Start Maternity Grants   ‘Bedroom Tax’ Once powers are devolved, we will effectively abolish the bedroom tax Job Grant To introduce a new Job Grant for young people at risk of long-term unemployment entering the labour market Consultation on Social Security in Scotland

Consultation on Social Security in Scotland Vision and Principles Vision: Social security is important to all of us and able to support each of us when we need it Consultation on Social Security in Scotland

Consultation on Social Security in Scotland Vision and Principles Principles: Social security is an investment in the people of Scotland Respect for the dignity of individuals is at the heart of everything we do Our processes and services will be evidence-based and designed with the people of Scotland We will strive for continuous improvement in all our policies, processes and systems, putting the user experience first We will demonstrate that our services are efficient and value for money Consultation on Social Security in Scotland

Responding to the Consultation The Scottish Government want to hear your views The Consultation will be open from 29th July to 28th October You will have a chance to discuss aspects of the consultation today but you are also very welcome to respond individually You can choose to respond in a variety of ways and do not need to answer every question Consultation on Social Security in Scotland

Responding to the Consultation A shorter summary document is also available Will be online – the optimal way to respond We have worked hard to ensure the consultation is as accessible as possible Will be available in various formats and languages upon request You do not need to answer every question Consultation on Social Security in Scotland

Part 1 – A Principled Approach How a social security system can be developed that is based on a distinctively Scottish guiding vision set of principles. How the vision and principles can be reflected in the following ways: In legislation; In outcomes and the user experience; In deciding which option will be best to deliver social security benefits and services; and In addressing equality issues Consultation on Social Security in Scotland

Part 2 – Devolved Benefits Focusses on powers over specific benefits that will transfer to Scotland – the devolved benefits. Consultation on Social Security in Scotland

Part 3 – Operational Policy Part 3 looks at the strategic functions that the social security system will need to carry out in order to operate competently. This means functions that are not specific to any individual benefit but could apply to any of the devolved benefits – the ‘operational policy’ areas Consultation on Social Security in Scotland

The Consultation Timeline 29 July 2016: Launch consultation on the future of social security in Scotland - engage stakeholders in development of devolved powers and how they might be framed in legislation Post-publication: Stakeholder engagement, to add further insights and detail to the information we will gather through our consultation Early 2017: Scottish Government response to the consultation to be published Early 2017: Scottish Government report on Stage 2 of our appraisal of the options for delivery of social security 2017: Scottish Government will introduce its first, devolved social security Bill Consultation on Social Security in Scotland

Beyond the Consultation and Bill Regulations - comprehensive suite of Scottish secondary legislation, potentially setting out the detail of schemes to operate the devolved benefits (entitlement, awards, payments etc.) Development and publication of guidance - explaining how the system and regulations will be applied in practice Social security agency – Ministers see the creation of an agency as offering the best governance and accountability structure Devolved Scottish Social Security system - multi-modal delivery coming online over the next Parliamentary term Consultation on Social Security in Scotland

Scottish Government Contact Details Consultation: https://consult.scotland.gov.uk/social-security/social-security-in-scotland Email: socialsecurityconsultation@gov.scot Telephone : 0131 244 7763 In writing: Social Security Consultation, 5th Floor, 5 Atlantic Quay, 150 Broomielaw, Glasgow, G2 8LU Consultation on Social Security in Scotland

Scottish Government Contact Details Keep up to date on what is happening with the Scottish Government’s Social Security newsletter: http://register.scotland.gov.uk/subscribe Consultation on Social Security in Scotland

Disability Benefits Yvette Burgess, HSEU

Disability benefits Commitment to maintaining current level Commitment to ‘secure and smooth transition’ with reform in the longer term Cash benefits: DLA, PIP, AA, IIDB, Carer’s Allowance Purpose – to help with additional costs disabled people face Aim for the future – that disability benefits work well with other devolved services ie health, housing and social care and potential for a ‘whole life’ approach to disability benefit 10% of the population receive disability benefits (24% of pensioners; 4% of children; 7% of working age adults – 12% of whom are in work) Attendance Allowance received by 13% of over 65 year olds and 40% of over 85 year olds. Proposal to increase benefit levels by Consumer Price Index – rather than the triple lock which pensions enjoy (best of wages, prices or 2.5%) Purpose of these cash benefits is to help people deal with the additional costs associated with disability.

Key questions Assessment process? Information sharing between public bodies Eligibility criteria – particularly age related eg lack of mobility component of AA? Timescales for making a decision? Alternatives to cash payments (including option of adaptation to home)? Local or national delivery? Process – ‘inquisitive approach’ whereby onus is on the agency to obtain the information it needs?

Supporting access to any new system Supporting people with the process / assessment - role of housing / housing support services? Workforce training and development Role of publicly funded advice services? An opportunity to drive improvement? Advocacy – independent services for those with most complex needs Should advice agencies have benefit take up targets? Should Benefits Advice Line be resurrected? Informal advocacy – right to bring family member, friend, carer, support worker to assessment.

Fuel Poverty Related Benefits in Scotland Social Security in Scotland SFHA seminar September 2016

Overview What benefits are being devolved? How are these benefits targeted at present? How much money is involved? Fuel poverty among households in Scotland in 2014 Questions for discussion

Annual energy-related benefits in Scotland and eligibility Winter Fuel Payment Approx £180m, £100-300 depending on household Universal benefit for people over female state pension age Cold Weather Payments Variable depending on temperatures, £3.4m in 15-16 Passport benefits for low income pensioners and families and people with disabilities Warm Home Discount: Approx £30m, £140 per household Two thirds universal entitlement for those on pension credit (95% match), One third passport benefits determined by suppliers I’m going to apologise for the amount of text and numbers on this slide! WFP is by far the biggest single source of energy related spending in Scotland just now, at around £180m pa. All pensioner households get this benefit, although the value of the benefit varies depending on the household circumstance. The value of WFP will, however, fall as state pension age rises, because people will be older before they become eligible. Female state pension age is currently 63, but will rise very rapidly to reach 65 by 2018. From then, both male and female pension age will increase to 66 in 2020 and after that to 67. Cold Weather Payments depend, as the name suggests, on periods of extended cold weather over the winter period. Most of this year’s GB payments (total £3.9m) were made in Scotland, and only a minority of those who eligible receive a payment in any given year. Citizens Advice research (at GB level) suggests that the CWP group is a good proxy for those at greatest risk of fuel poverty because of low incomes. Eligibility as slide – so similar to the approach taken with the Warm Home Discount, which is an obligation placed on larger energy suppliers by the UK Government. The main difference is that the non-pension ‘broader group’ who receive WHD have to apply annually, whereas payments to poorer pensioners are made automatically through a data matching process. UK Govt figures show that 95% of eligible pensioner households receive the money – which obviously implies that 5% do not.

This slide shows the balance of funding between the benefit programmes we have just discussed and programmes in Scotland which deliver energy efficiency measures. For clarity, the SG programmes are the original 15-16 budget, you may have seen a recent announcement of increased funding as part of post-brexit spending boost and that’s not included here as it is a one off from an underspend elsewhere in Government.

This chart, using data from the Scottish House Condition Survey, shows the proportions of all those in fuel poverty who are from different groups. The main point which comes across from this is, while pensioner households are the overwhelming beneficiaries of spending, they are somewhat less than 50% of all fuel poor households in Scotland. On the other hand, around half of all pensioner households are fuel poor – a higher proportion of that group that for others (one third of single parent households are fuel poor, for comparison).

Questions for Discussion Should WFP be seen as a boost to low state pensions rather than a fuel poverty benefit? Moving from universal payments for WFP could risk excluded older people losing out? Could this be avoided? If Scotland chooses a different approach… Should payments continue to be ring fenced, or could money support other FP initiatives? SG advisory groups suggest targeting: what principles should underpin this approach if taken? For context – over the last year, the Scottish Government has convened a strategic fuel poverty working group, and a rural fuel poverty task force. Both have suggested that there is – at the very least – a case for SG to look at re-targeting of WFPs. Some of the questions which have come up in the discussions in those groups are below – we’re going to concentrate on these for the remainder of this session, but just to check whether there are any clarifications needed before we go through these…?

UC flexibilities and Discretionary Housing Payments Jeremy Hewer SFHA