1. 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.

2. 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.

3. 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 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 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.

4. 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.

5. 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.

6. 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.

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. ?
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.

14. Any questions?