Scottish Child Payment doubles

104,000 children have payment increased to £20 per week

The flagship family payment – Scottish Child Payment – has now doubled to £20 per week per child. 104,000 children are already benefiting from this increase.

The payment, which is unique to Scotland, was designed to tackle child poverty head on. It is one of five family benefits which provides financial support to low income families with children aged under 6.

The benefit will be extended at the end of the year to all eligible children under the age of 16 – and at that point also increase further from £20 to £25.

Once extended, it is expected over 400,000 children could be eligible. The newly doubled Scottish Child Payment, together with the three Best Start Grant payments and Best Start Foods, will provide families with more than £10,000 by the time their first child turns 6 and £9,700 for subsequent children.

This compares to less than £1,800 for an eligible family’s first child in England and Wales, and less than £1,300 for subsequent children.

Visiting Glasgow based family charity Govan Help, First Minister Nicola Sturgeon said: “We are using our social security powers to take immediate steps to put cash in the pockets of families by doubling the Scottish Child Payment to £20 per week per child – support not replicated anywhere else in the UK.

“This is a key part of our national mission to tackle child poverty. We will further increase this payment to £25 by the end of 2022 – five times the amount campaigners originally asked. This will gives families additional financial support of £1,300 for each eligible child every year. We will back this with investment of around £671 million over the next two years – just part of our package of support for families.

“Our Tackling Child Poverty Delivery Plan will also build on our investment in employment support for parents, through new skills and training opportunities and key worker support to help reduce household costs and drive longer term change.

“We are determined to give children the best start and a bright future by putting more money into the pockets of those who need it most. Increasing the Scottish Child Payment will make a real difference to families and help to build a more equal and fairer Scotland for everyone.”

Viv Sawers, Chief Officer at Govan Help, said: “This is a fantastic measure from Scottish Government in tackling Child Poverty in Scotland. The roll out and the uplift in Scottish Child Payment will have an incredible impact on the families across Scotland who need it most and we are delighted to see money going directly to families who we know are struggling to meet their basic cost of living.  

“Govan has higher than average rates of Child Poverty so this will have a hugely positive impact on the quality of life for families in this local community. We see families struggling daily, they have told us what a difference this has made already with the cost of living increases, we look forward to supporting more families to access this as it rolls out to children up to age 16 later this year.

“We know parenting is a really hard job, without financial pressures, this funding will go a long way to removing stresses that can impact on  healthy family functioning and wellbeing.”

  • Scottish Child Payment increased to £20 from Friday 1 April
  • Parents and carers do not need to reapply and will see their payments increase automatically
  • Social Security Scotland administers five benefits for families on tax credits and certain benefits. These include Best Start Grant Pregnancy and Baby Payment, Early Learning Payment, School Age Payment,  Best Start Foods and Scottish Child Payment. Parents and carers can find out more and apply at mygov.scot or by calling 0800 182 2222
  • Ahead of extending the Scottish Child Payment to under 16s, the Scottish Government is set to invest £225 million this year (2022-23) in our Scottish Child Payment.
  • The Scottish Government is also  putting around £150 million in the pockets of families through Bridging Payments to families of 145k children in receipt of free school meals across 2021 and 2022
  • The extension of Scottish Child Payment is subject to data on qualifying benefits being received from the Department of Work and Pensions
  • The Tackling Child Poverty Delivery Plan 2022-26 – Best Start, Bright Futures outlines actions to be taken to provide immediate support to children and families and to break the cycle of child poverty

Increase in social security payments

Social Security Scotland: Payment rates for benefits increase from April

EIGHT of the benefits delivered by Social Security Scotland will now increase by 6%. The increase in payments for low income households and carers comes as the cost of living continues to rise.

Benefits and assistance including Job Start Payment, Young Carers Grant, Funeral Support Payment and Carer’s Allowance Supplement were due to be increased by 3.1% for 2022/23. Subject to parliamentary approval, the increases will now be almost doubled to a 6% uprate.

In addition, the three Best Start Grant payments, which we had not previously planned to uprate, will also now be uprated by 6%, and Child Winter Heating Assistance, which was previously set to rise by 5%, will now also rise by 6%.

From tomorrow (1st April), there will be a 100% increase in Scottish Child Payment, which will double from £10 per week to £20. Best Start Foods was already increased from £4.25 to £4.50 a week in August (5.88%).

Adult Disability Payment and Child Disability Payment will still increase by 3.1% on April 11 in line with the equivalent benefits (Disability Living Allowance and Personal Independence Payment) which are still administered by the Department for Work and Pensions under agency agreement.

This is to avoid creating a two-tier system where individuals paid by Social Security Scotland are paid more than clients whose cases have not yet transferred to the Scottish system.

Payment rates for 2022-2023 are:

BenefitRates 2021-2022Rates 2022-2023New rates 2022-2023 (6% uprate)
Best Start Grant
Best Start Grant Pregnancy and Baby Payment (1st Child Payment)£606.00£606.00£642.35
Best Start Grant Pregnancy and Baby Payment (Subsequent Child Payment & Extra Payment for Twins/Triplets)£303.00£303.00£321.20
Best Start Grant Early Learning Payment£252.50£252.50£267.65
Best Start Grant School Age Payment£252.50£252.50£267.65
Child Winter Heating Assistance
Child Winter Heating Assistance (annually)£202.00£212.10£214.10
Funeral Support Payment
standard rate for other expenses element£1,010.00£1041.30£1,070.60
other expenses element where there is a funeral plan£123.25£127.05£130.65
removal of implanted medical devices£20.55£21.20£21.55
Job Start Payment
Job Start Payment (one-off) standard rate£251.25£260.35£267.65
higher rate£404.00£416.50£428.25
Young Carer Grant
Young Carer Grant (annually)£308.15£317.70£326.65
Carer’s Allowance Supplement£8.90£9.15£9.45
Child Disability PaymentRates 2021-2022Rates 2022-2023*
Care Component Highest Rate£89.60£92.40
Care Component Middle Rate£60.00£61.85
Care Component Lowest Rate£23.70£24.45
Mobility Component Higher Rate£62.55£64.50
Mobility Component Lower Rate£23.70£24.45
Adult Disability PaymentRates 2021-2022Rates 2022-2023*
Daily Living Component Standard Rate£60.00£61.85
Daily Living Component Enhanced Rate£89.60£92.40
Mobility Component Standard Rate£23.70£24.45
Mobility Component Enhanced Rate£62.55£64.50

* 3.1% increase in line with the equivalent benefits (Disability Living Allowance and Personal Independence Payment) which are still administered by DWP under agency agreement.

No barriers to Scottish healthcare for fleeing Ukrainians

People who ordinarily live in Ukraine will be able to access NHS services at no charge on the same basis as people living in Scotland.

An amendment to current legislation will ensure that people who have fled Ukraine can access services such as maternity care, mental health services and treatment for specific conditions at no charge while they remain here.

This will also apply to people from Ukraine who were in Scotland on short-term visas when the conflict began and who apply to extend or switch visas because they cannot return home. 

Anyone in Scotland, regardless of their nationality, residence status or length of time they will be in the country, is already entitled to receive emergency treatment at an A&E or casualty department, and can register with a GP Practice to receive general medical services, at no charge.

In addition, emergency legislation which came into force on Tuesday 22 March will allow people coming to Scotland from Ukraine to meet residency conditions for Scottish social security benefits.

This means that those fleeing war in Ukraine, and who are eligible, will have immediate access to benefits such as Scottish Child Payment and Child Disability Payment.

Health Secretary Humza Yousaf said: “We are determined to do everything in our power to give displaced people from Ukraine the warmest welcome possible when they arrive and this includes offering healthcare to those who need it.

“We fully recognise that they may have been through very traumatic experiences and could require specialist treatment and care. Removing charges for healthcare and providing access to benefits is a practical step in ensuring those who have been forced to flee their homes and country can live safely and comfortably in Scotland for as long as they need to.”

From Bad to Worse: Universal Credit families face another income cut

UP TO £660 PER YEAR COULD BE SLASHED FROM HOUSEHOLD INCOME

In a letter to the chancellor last week, the Bank of England stated that it expected inflation to be “around 8 per cent” this spring. With Universal Credit set to rise by just 3.1 per cent in April, families with children on universal credit now face a real-terms cut of around £660 per year, on average.

This is an increase on Child Poverty Action Group’s original analysis which showed a cut of £570, when inflation was expected to be 7.25 per cent.

The £20 cut to universal credit last October plunged out-of-work benefits to their lowest level in 30 years. Latest analysis shows that the picture for families is going from bad to worse.

Without government action, families will be pulled deeper into poverty. Increasing benefits by anything less than 8 per cent risks pushing those with already stretched budgets past breaking point.

Anti-poverty charities wrote to the Chancellor last week calling for a minimum 7% benefits rise:

Prices are rising at the fastest rate in 30 years, and energy bills alone are going to rise by 54% in April. We are all feeling the pinch but the soaring costs of essentials will hurt low-income families, whose budgets are already at breaking point, most.

There has long been a profound mismatch between what those with a low income have, and what they need to get by. Policies such as the benefit cap, the benefit freeze and deductions have left many struggling.

And although benefits will increase by 3.1% in April, inflation is projected to be 7.25% by then. This means a real-terms income cut just six months after the £20 per week cut to universal credit. 

Child Poverty Action Group’s analysis shows families’ universal credit will fall in value by £570 per year, on average. The Joseph Rowntree Foundation has calculated that 400,000 people could be pulled into poverty by this real-terms cut to benefits.

The government must respond to the scale of the challenge. Prices are rising across the board. Families with children in poverty will face £35 per month in extra energy costs through spring and summer, even after the government’s council tax rebate scheme is factored in. These families also face £26 per month in additional food costs. The pressure isn’t going to ease: energy costs will rise again in October. 

A second cut to benefits in six months is unthinkable. The government should increase benefits by at least 7% in April to match inflation, and ensure support for housing costs increases in line with rents. All those struggling, including families affected by the benefit cap, must feel the impact.

Much more is needed for levels of support to reflect what people need to get by, but we urge the government to use the spring statement on 23 March to stop this large gap widening even further. The people we support and represent are struggling, and budgets can’t stretch anymore.

Alison Garnham, Chief Executive, Child Poverty Action Group

Emma Revie, Chief Executive, The Trussell Trust

Graeme Cooke, Director of Evidence and Policy, Joseph Rowntree Foundation

Morgan Wild, Head of Policy, Citizens Advice

Dan Paskins, Director of UK Impact, Save the Children UK

Imran Hussain, Director of Policy and Campaigns, Action for Children

Thomas Lawson, Chief Executive, Turn2us

Sophie Corlett, Director of External Relations, Mind

Dr Dhananjayan Sriskandarajah, Chief Executive, Oxfam GB

Caroline Abrahams, Charity Director, Age UK

Eve Byrne, Director of Advocacy, Macmillan Cancer Support

Kamran Mallick, CEO, Disability Rights UK

Katherine Hill, Strategic Project Manager, 4in10 London’s Child Poverty Network

Mubin Haq, Chief Executive Officer, abrdn Financial Fairness Trust 

Bob Stronge, Chief Executive, Advice NI 

Dr Ruth Allen, Chief Executive, British Association of Social Workers

Joseph Howes, Chief Executive Officer, Buttle UK

Helen Walker, Chief Executive, Carers UK 

Balbir Chatrik, Director of Policy and Communications, Centrepoint

Gavin Smart, Chief Executive, Chartered Institute of Housing 

Leigh Elliott, CEO, Children North East

Niall Cooper, Director, Church Action on Poverty

Lynsey Sweeney, Managing Director, Communities that Work

Anna Feuchtwang, Chair, End Child Poverty Coalition

Claire Donovan, Head of Policy, Research and Campaigns, End Furniture Poverty

Victoria Benson, CEO, Gingerbread 

Neil Parkinson, co-head of casework, Glass Door Homeless Charity

Graham Whitham, Chief Executive, Greater Manchester Poverty Action

Yasmine Ahmed, UK Director, Human Rights Watch 

Sabine Goodwin, Coordinator, Independent Food Aid Network 

Jess McQuail, Director, Just Fair 

Gemma Hope, Director of Policy, Leonard Cheshire

Paul Streets, Chief Executive, Lloyds Bank Foundation for England & Wales

Jackie O’Sullivan, Director of Communication, Advocacy and Activism, Mencap

Mark Rowland, Chief Executive, Mental Health Foundation

Chris James, Director of External Affairs, Motor Neurone Disease Association

Nick Moberly, CEO, MS Society

Anna Feuchtwang, Chief Executive, National Children’s Bureau

Charlotte Augst, Chief Executive, National Voices

Jane Streather, Chair, North East Child Poverty Commission

Tracy Harrison, Chief Executive, Northern Housing Consortium

Karen Sweeney, Director of the Women’s Support Network, on behalf of the Women’s Regional Consortium, Northern Ireland 

Satwat Rehman, CEO, One Parent Families Scotland

Mark Winstanley, Chief Executive, Rethink Mental Illness

James Taylor, Executive Director of Strategy, Impact and Social Change, Scope

Irene Audain MBE, Chief Executive Scottish, Out of School Care Network

Steve Douglas CBE, CEO, St Mungo’s 

Richard Lane, Director of External Affairs, StepChange Debt Charity

Robert Palmer, Executive Director, Tax Justice 

Claire Burns, Director, The Centre for Excellence for Children’s Care and Protection (CELCIS)

The Disability Benefits Consortium 

Dr. Nick Owen MBE, CEO, The Mighty Creatives

Peter Kelly, Director, The Poverty Alliance

Elaine Downie, Co-ordinator, The Poverty Truth Community

Tim Morfin, Founder and Chief Executive, Transforming Lives for Good (TLG)

UCL Institute of Health Equity 

Dr Mary-Ann Stephenson, Director, Women’s Budget Group 

Natasha Finlayson OBE, Chief Executive, Working Chance

Claire Reindorp, CEO, Young Women’s Trust 

Businesses in Scotland are also calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement tomorrow, according to a recent survey from Bank of Scotland.  

As inflation hits the highest levels seen since 1992, over half (55%) of Scottish businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor. This was followed closely by calls for a reduction in VAT, cited by two-fifths (40%), while almost a quarter of firms (23%) want increased funding to help create new jobs and develop skills. 

Rising prices remain a key challenge for business. Almost half (46%) of respondents said they are concerned about having to increase the costs of goods and services and over one in ten (14%) stated that inflation is reducing profitability. Almost one in ten (9%) said rising prices had caused them to worry about having to make staff redundant and a further one in ten (9%) were concerned about not being able to pay their bills. 

To help specifically with rising prices Scottish businesses are asking the Chancellor for a VAT reduction (46%), while a third (35%) have called for grants to cover rising energy costs. A further quarter (23%) called for grants to support investment in energy saving measures. 

The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (40%), causing hikes in freight costs (39%) and disruption through Rules of Origin and VAT requirements from EU suppliers (33%).

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said:“Rising prices are causing multiple challenges for businesses across Scotland and the pressure from inflation shows no sign of abating in the near-term.  

“As we wait for the Chancellor’s Spring Statement, we’ll continue to remain by the side of business in Scotland and support the country’s ongoing economic recovery from the pandemic.” 

Responding to the ONS public sector finances statistics for February  Chancellor of the Exchequer, Rishi Sunak said: “The ongoing uncertainty caused by global shocks means it’s more important than ever to take a responsible approach to the public finances.  

 “With inflation and interest rates still on the rise, it’s crucial that we don’t allow debt to spiral and burden future generations with further debt.”

 “Look at our record, we have supported people – and our fiscal rules mean we have helped households while also investing in the economy for the longer term.”

All will be revealed when the Chancellor delivers his Spring Statement (Budget) at Westminster tomorrow.

Immediate benefit support for those fleeing the invasion in Ukraine

The Department for Work and Pensions is laying emergency regulations today (Monday 21 March 2022) so those arriving in the UK from Ukraine as a result of the Russian invasion can access Universal Credit and jobs support immediately.

Ukrainians will also be eligible for Housing Benefit, Pension Credit, Personal Independence Payment, Child Disability Living Allowance and Carers Allowance, and Attendance Allowance. Contributions-based Employment and Support Allowance (ESA), and Jobseekers Allowance (JSA) are also available for those Ukrainians who meet the criteria.

Translation services are available to help new arrivals with phone applications, with Work Coaches in DWP Jobcentres on hand to support people making claims online.

DWP staff are also delivering additional face-to-face assistance to those who need it – including tailored support to find work and advice on benefit eligibility – and will continue to do so.

Without the emergency legislation people arriving from Ukraine would be subject to the Habitual Residence Test, meaning they would have to wait up to three months before being able to receive income-related benefits, including Universal Credit.

Secretary of State for Work and Pensions Thérèse Coffey said: “My priority is that people fleeing the unimaginable horrors in Ukraine to seek safety here get the support and help they need from day one to move forward in their lives immediately.

Financial Secretary to the Treasury Lucy Frazer said: “It is vital that families coming from Ukraine can support their children from the moment they arrive, and by adjusting child benefit rules and ramping up our support, the tax system is pivoting to ensure this happens.

Salvation Army Refugee Response co-ordinator Major Nick Coke said: “We welcome the news that Ukrainians coming to the UK will be able to access benefits immediately and for those who are able, help to find suitable work.

“With offices on the ground in Ukraine and the border countries providing emergency food and shelter, The Salvation Army sees first-hand the trauma those displaced by war have experienced.

“It is fitting that they receive targeted help when seeking refuge in the UK.”

Social Security Scotland: Adult Disability Payment pilots begin today

The new Adult Disability Payment will open for applications today (Monday 21 March) for people living in three pilot areas.

People aged between 16 and state pension age who are disabled, have a long-term health condition or a terminal illness living in Dundee City, Perth and Kinross and Western Isles council areas can apply.

Adult Disability Payment will replace the UK Government’s Personal Independence Payment (PIP) in Scotland.

People with ongoing awards of Personal Independence Payment and Disability Living Allowance do not need to make an application for Adult Disability Payment. Their awards will transfer to the Scottish social security system automatically from summer 2022.

Further council areas will be introduced in phases until Adult Disability Payment is rolled out nationally on 29 August 2022.

Minister for Social Security Ben Macpherson said: “Social security is a human right and none of us know when we might need it – it is a shared investment to help build a fairer society, together. We are developing a system that is rooted in trust to make sure people can access the support that they are entitled to.

“Launching this first Adult Disability Payment pilot is a significant milestone, as we start to deliver our biggest and most complex benefit. We are taking a positive and compassionate approach to delivering disability assistance, centred around our principles of dignity, fairness and respect.

“We know people have found applying for disability benefits stressful in the past. That is why we have listened to their experiences and have designed our service to work for people, not against them.

“We are ensuring that accessing Adult Disability Payment is as straightforward as possible and we will always start from a position of trust. Importantly, in the Scottish system no one will be subject to Department for Work and Pensions style assessments and we will never use the private sector to carry out health examinations.

“There won’t be any degrading functional examinations, such as asking a client to ‘touch their toes’.. These changes have been welcomed by those with lived experience, who we have worked with to design this benefit.

“People will only be invited to a consultation on occasions when we require more information so we can make a decision. This will be a conversation with a health and social care professional to understand how an individual’s disability or health condition impacts them.

“We are committed to giving people timely decisions, but our priority is making the right decisions first time and sometimes this may take a bit longer. This will reduce the need for people to go through a redetermination or appeal.

“Adult Disability Payment is there to support people to live well and provide security at the most difficult of times. I would encourage those who think they could be eligible to check and apply.”

Tracy McNally, Director of Dundee Citizens Advice Bureau said: “Helping people with social security payments, and disability payments in particular, is one of the biggest things we do and we’re excited that Dundee is one of the pilot areas for the roll out of adult disability payments.

“It’s really important that the new system is rooted in dignity and respect for applicants, and doesn’t cause unnecessary stress or anxiety.

“We’d encourage anyone who may eligible for the support to apply, and if anyone ever needs help or advice on social security issues, your local CAB is here for you.”

Dignity, fairness, respect: Improving disability benefits

Disabled people with the most serious lifelong health conditions will have more financial security under Scotland’s social security system.

Adult Disability Payment will replace the UK Government’s Personal Independence Payment (PIP). It will open for new applications in pilot areas starting this month.

Disabled people on the highest components of the new benefit and whose needs are highly unlikely to change will be eligible for an “indefinite award”. In effect, this will mean they will not be subject to reviews and can rely on their new benefit into the long-term.

People with ongoing awards of Personal Independence Payment and Disability Living Allowance do not need to make an application for Adult Disability Payment. They will be contacted from this summer to let them know when their awards will automatically be moved safely and securely to Adult Disability Payment.

Social Security Minister Ben Macpherson said: “The introduction of indefinite awards, as part of Adult Disability Payment, underlines our commitment to deliver on the principles of Scotland’s social security system to treat people with dignity, fairness and respect.

“In making this decision, we have engaged with a wide range of people with lived experience of the current system and will continue to listen as we design and build a social security system that works for disabled people.

“We want to ensure that people on the highest levels of Adult Disability Payment awards receive long-term and adequate support, because those with lifelong conditions, or disabilities resulting in needs highly unlikely to change, should not be subject to unnecessary reviews when it is reasonably expected that their situation will not change.

“Under the UK Government’s Personal Independence Payment, similar awards have generally been reviewed between every 2 to 10 years. However, disabled people tell us that even review periods of 10 years can create stress and anxiety. That is why we have decided to introduce indefinite awards – we are determined to do things differently and build a more compassionate system in Scotland.”

Moira Tasker, Chief Officer, Inclusion Scotland said: “Inclusion Scotland warmly welcomes the announcement that there will be indefinite awards of Adult Disability Payment. We are glad the Minister has acted on the views expressed by disabled people and adopted this measure.

“It will come as a huge relief for disabled people with high, permanent levels of impairment who faced continual reassessments under the flawed DWP, Personal Independent Payment, system. Indefinite awards will also provide some certainty and security for those who receive them.”

Morna Simpkins, Director of MS Society Scotland, added: “We are pleased the Scottish Government has listened to the views of the MS community and MS Society Scotland and will re-introduce indefinite awards.

“MS is relentless, painful, and disabling. Indefinite awards will provide some people living with progressive long term conditions, like MS, with the security of knowing they will not have their awards downgraded or income cut.”

Adult Disability Payment is the twelfth benefit to be introduced by Social Security Scotland since September 2018, which includes seven new benefits, unique to Scotland.

Nearly 82,000 carers benefit from additional double payment

£57.6 million support for carers in 2021

Over 658,000 Carer’s Allowance Supplement payments have been made to 126,055 carers since this additional payment, unique in the UK, was introduced in September 2018.

In total, £188 million has been paid to carers since launch and just under 82,000 eligible carers received a payment in December 2021.

Recognising the impacts of the pandemic on unpaid carers, these payments included an additional Coronavirus Carer’s Allowance Supplement payment, making the total December payment value  £462.80.

Carer’s Allowance Supplement is an extra payment for people in Scotland who get Carer’s Allowance on a particular date.

There are two Carer’s Allowance Supplement eligibility dates each year – one in April and one in October. The eligibility dates for 2022 will be Monday 11 April 2022 and Monday 10 October 2022.

The Minister for Social Security, Ben Macpherson said: “In recognising the vital contribution of unpaid carers in our society, Carer’s Allowance Supplement was the first payment we introduced when we established our new social security system in 2018.

“Providing this supplementary payment rights the wrong that Carer’s Allowance on its own is the lowest of all working age benefits in the UK.

“The impacts of the pandemic put additional pressure on tens of thousands of carers across the country. That is why we also paid an additional Coronavirus Carer’s Allowance Supplement Payment in 2020 and 2021.

“The Scottish Government’s additional payments meant that eligible carers in Scotland received up to £694.20 more in support last year than carers in the rest of the UK.”

  • Full details on the statistics are available to view at https://www.socialsecurity.gov.scot/reporting/publications/summary-statistics-for-carers-allowance-supplement-to-october-eligibility-date-2021 
  • Carer’s Allowance Supplement is paid automatically twice a year to carers who are living in Scotland and receive Carer’s Allowance, paid by the Department for Work and Pensions, on specified qualifying dates. The qualifying date for the December 2021 double payment was 11 October 2021
  • There are two Carer’s Allowance Supplement eligibility dates each year – one in April and one in October. The eligibility dates for 2022 are Monday 11 April 2022 and Monday 10 October 2022. Payment months will be June and December 2022 which follows previous payment cycles, with exact date to be confirmed closer to the time
  • Carer’s Allowance Supplement will be uprated from April 2022. The new Carer’s Allowance Supplement rate for 2022 will be £237.90

Holyrood approves Adult Disability Payment legislation

New benefit available in pilot areas from 21 March

The new Adult Disability Payment will open for applications in three pilot areas from 21 March 2022.

Legislation unanimously approved today by the Scottish Parliament means that working age disabled people, those with a long-term health condition and people who have a terminal illness should apply for disability assistance to the new Scottish system.

Applications will open first for those living in Dundee City, Perth and Kinross and the Western Isles council areas.

This payment will be the twelfth to be delivered by the Scottish Government and will replace Personal Independence Payment, which is currently delivered by the UK Government’s Department for Work and Pensions.

Adults of working age with a disability or health condition, who are not already in receipt of Personal Independence Payment or Disability Living Allowance, and living in the pilot areas, will be the first to be able to apply.

Further council areas will be introduced in phases until Adult Disability Payment rolls out nationwide on 29 August.

People already receiving DWP payments will not need to apply for Adult Disability Payment. Their awards will transfer to the Scottish social security system automatically, beginning in August.

This will be done safely and securely so that people will still get the same amount of money, to the same account. The date of their first payment will be confirmed in writing before they transfer.

Minister for Social Security Ben Macpherson said: “The unanimous passing of the regulations for Adult Disability Payment is a significant milestone for Scotland’s social security system. It means we can now take a very different approach to delivering disability benefits – in comparison to the current DWP system – and our focus is on providing a positive and compassionate experience for people applying for and receiving our new benefit. 

“We know people have found applying for DWP disability benefits stressful in the past. That is why we have listened to their experiences and designed our new system to work for people, not against them. We are committed to doing things differently – we are ensuring that accessing Adult Disability Payment is as straightforward as possible and we will always start from a position of trust.

“Importantly, we have abolished assessments in the form currently undertaken by the DWP. Instead, and only where required, we will hold consultations between the person and a Social Security Scotland health or social care practitioner. Our consultations will not involve functional examinations.

“To ensure we don’t create a two tiered system as we complete safe and secure transfer, we are largely keeping the eligibility criteria for Adult Disability Payment the same, ahead of a two stage independent review of Adult Disability Benefit.

“This review will begin later in the year, to consider what further changes and improvements could, and should, be made in the future.”

Number of workers on universal credit up by 1.3 million since the eve of the pandemic

  • 130% rise in working claimants during the pandemic 
  • Low-income workers facing “perfect storm” this spring unless ministers improve “woefully inadequate” levels of support, warns union body 
  • Cost-of-living crisis already depressing value of UC, TUC analysis reveals 
  • *NEW POLL* shows many families already struggling to make ends meet 

The TUC has warned that millions of low-income workers face a “perfect storm” this April with universal credit (UC) falling behind the cost of living as energy bills and taxes rise. 

The warning comes as new TUC analysis reveals that the number of workers on UC has increased by 1.3 million since the eve of the Covid-19 pandemic. 

The analysis of official statistics shows that over 2.3 million workers were in receipt of UC at the end of 2021, compared to just over one million on the eve of the pandemic in February 2020. 

This represents an increase of 130 per cent over the last two years and means 1 in 14 (7.2 per cent) working adults now claim UC. 

The TUC says the huge rise in UC recipients has been driven by working households being pushed into financial hardship during Covid, with millions facing a cost-of-living crunch this year. 

Basic value of universal credit now lower than at start of pandemic 

The TUC says that the basic value of UC is now lower than at the start of the pandemic as a result of UC not keeping up with inflation. 

TUC estimates show that the value of UC has fallen by £12 a month in real terms when measured against CPI inflation and £21 a month when measured against RPI inflation compared to just before the pandemic (February 2020).  

The TUC says this trend will only get worse in the months ahead with inflation forecast to rise further. 

Struggling to cover the basics 

The TUC warns that millions of low-paid families face a crunch point in April when energy bills and national insurance contributions go up – at the same time as UC continues to fall in value. 

New polling – carried out for the union body before last week’s energy cap announcement and Bank of England forecasts – shows that many are already struggling to make ends meet: 

  • One in eight workers (12 per cent) say they will struggle to afford the basics in the next six months. And a fifth of working people (22 per cent) say they’ll struggle to afford more than the basics. 
  • Low-paid workers are more likely to be struggling. One in six (17 per cent) low-paid workers (those earning less than £15,000 a year) say they will struggle to afford basics in the next six months, and three in 10 (29 per cent) say they’ll struggle to afford more than the basics. 

Parents of young children, disabled workers, key workers and BME workers are more likely to be struggling: 

  • Nearly one in five families (18 per cent) with kids under 11 will struggle to afford the basics 
  • Over one in five (21 per cent) disabled workers will struggle to afford the basics, compared to 10 per cent of non-disabled workers 
  • 14 per cent of key workers say they’ll struggle to afford the basics in the next six months, compared to 10 per cent of non-key workers 
  • 14 per cent of BME workers say they’ll struggle to afford the basics in the next six months, compared to 11 per cent of white workers 

The poll also reveals that a fifth of workers (21 per cent) say they have Christmas debts to pay off this year – a number that rises to over a quarter (28 per cent) for workers with children of school age. 

Better support needed 

The TUC says the government must do far more to help struggling households to get through the months ahead. 

The union body says the cost-of-living support announced by the Chancellor on Thursday is “woefully inadequate” and will provide families with just £7 extra a week – most of which will have to be repaid. 

The TUC is also calling for UK Government to use the upcoming spring budget to: 

  • Increase to UC to 80 per cent of the real Living Wage. 
  • Introduce a windfall tax on energy companies, using the money to reduce household energy bills 
  • Boost the minimum wage to least £10 an hour now 
  • Work with unions to get pay rising across the economy 

TUC General Secretary Frances O’Grady said: “Millions of low-paid workers face a perfect storm this April.  

“At the same time as energy prices and national insurance contributions shoot up, universal credit is falling in value. 

“The government must do far more to help struggling families get through the tough times ahead. The support package announced by the Chancellor last week is woefully inadequate. 

“Universal credit urgently needs boosting and we need further action to reduce fuel costs for those battling to make ends meet. 

“Oil and energy companies shouldn’t be making bumper profits, while many struggle to heat their homes. 

“If ministers fail to do what is necessary, more households will be pushed below the breadline.” 

On the need to boost pay, Frances added: “The best way to give working families long-term financial security is to get pay rising across the economy. 

“That means increasing the minimum wage to at least £10 an hour now, and ministers requiring employers to negotiate sector-wide fair pay agreements with unions.”