What does the Scotland Act 2016 mean for Social Housing? Karen Wright, Policy Advisor SFHA Good morning everyone and thanks for coming along to my presentation. My name is Karen Wright, I am a Policy Advisor at the SFHA and I am presenting my paper on ‘ What does the Scotland Act 2016 mean for Social Housing?” I should add I mean – in Scotland.

Policy Context Opportunities Risks Q&A Before I get started I would like to show you an outline of my talk today. My paper covers a wide topic “what does the Scotland Act mean for social housing?” – so I have broken it down into a few sections. Firstly I am going to give some policy context around what is the Scotland Act to ensure that everyone has a basic level of understanding. I will then outline to what extent does the Scotland Act satisfy the Smith Agreement (and don’t worry I will explain the Smith Agreement in a few moments). I will then go on to give some musings of the opportunities and risks of the Scotland Act and use of powers to Scotland. I will then leave time for a short Q&A.

The Scotland Act 2016 – What is it? Smith Agreement The fiscal framework Tax Powers Scotland Act 1999 Energy and Fuel Poverty Social Security The Scotland Act. What is it? It is a huge question to fit into a 20 minute presentation but I will try my best. The Scotland Act 2016 updates the Scotland Act 1998 (which established the devolved Scottish Parliament) and devolves additional powers to Scotland. The Scotland Act is intended to implement the recommendations of the Smith Agreement which followed the Scottish Independence Referendum in September 2014. The Smith Agreement detailed heads of agreement on further devolution of powers to the Scottish Parliament and this was published shortly after the referendum, in November 2014. The Act devolves, of interest to housing, social security, energy and fuel poverty and tax powers to the Scottish Parliament. The fiscal framework, the funding arrangements that underpin the new tax and social security powers, was agreed on the 23rd February 2016 – after missing a few tense deadlines. The fiscal framework has been agreed until 2021 and safeguards Scotland’s budget from the economic risks of slower population growth. I will expand upon the fiscal framework before I speak about the additional powers.

Social Security Universal Credit flexibilities To legislate for disability benefits, carers’ benefits as well as the current regulated Social Fund (inc. Discretionary Housing Payments, Winter Fuel Payments and Payments for Cold Weather). New benefits and top-up benefits Work Programme and Work Choice Social security flexibilities: direct payments to social landlords, to vary housing costs, to vary the frequent of UC payments, to split UC payments between couples To legislate for the policy space around the second bullet including benefits for disabled people, carers, and DHPs, WFP and PCW To redesign programmes for unemployed people currently contracted by the DWP as the Work Programme and Work Choice.

Energy and Fuel Poverty Schemes for reducing fuel poverty: SG to design and implement supplier obligations in relation to energy efficiency and fuel poverty ECO: SM can design and implement ECO to reduce carbon emissions and home-heating costs (BOTH under the targets set by the SoS) SM will be consulted regarding renewable electricity incentive schemes These are schemes that will enable the SG to tackle fuel poverty and mean that SM will have power over how schemes for reducing fuel poverty and ECO (energy company obligation) will be designed and implemented.

Tax Powers Income Tax (non-savings or non-dividend income) A share of VAT receipts in Scotland will go to SG The Scotland Act 2016 devolves income tax (of earned income) to the Scottish Parliament as well as a share of VAT tax receipts.

What are the Opportunities and Risks of the Scotland Act (in relation to housing)

UC Flexibilities OPPORTUNITIES RISKS Direct payments, abolish the ‘bedroom tax’, more frequent payments, split payments Improved health and wellbeing for tenants Maximise receipt of rent payments RISKS System risks: expense and ability UK Government could delay the implementation of the changes

Social Security outside of UC New benefits, Top-Ups and benefits for carers, disabled people and those who are ill, Regulated Social Fund (inc. WFP & PCW) and DHPs OPPORTUNITIES New benefits / topped-up benefits /reformed benefits Alleviate poverty and improve health and wellbeing of tenants Improve rent collection RISKS Funding New schemes can be confusing or unsuccessful SG is required to engage with the UK Gov to create new social security benefits

Support for unemployed people OPPORTUNITIES The SP can reform or replace employment programmes These can be used to help those furthest from the job market back into work + increase tax receipts RISKS Risks to funding New schemes may be confusing for claimants or unsuccessful

Energy and Fuel Poverty OPPORTUNITIES SP can create new schemes to alleviate fuel poverty and enable tenants to live in warm, dry, safe homes SP new role in consulting on renewable energy incentive schemes RISKS UK decides the overall targets of fuel poverty and energy efficiency schemes Consult and consent requirements by SoS SoS does not always have to consult with SM

Income Tax (non-savings, non-dividend income) OPPORTUNITIES Redistribution of wealth to reduce inequality Improve health and wellbeing of tenants Improve rent collection RISKS Behavioural effects UK Gov is responsible for personal allowance

? To summarise, the Scotland Act is devolving significant powers to the Scottish Parliament and Scottish Government. Of particular relevance to housing, the Act brings new social security and energy and fuel poverty powers to Scotland. We believe that the Act broadly lives up to the Smith Agreement although we acknowledge there are limitations in some areas. We are excited to watch the manifestos to see how the main political parties intend to use the additional powers.

Any questions? kwright@sfha.co.uk