Universal Credit ‘makes work pay’

The national roll out of Universal Credit begins tomorrow

Jobcentres from the rural Highlands of Scotland, down through the Vale of York and into London are moving over to the new benefit on Monday 16 February, says the Department of Work and Pensions (DWP). Edinburgh is among the first tranche to move over to UC.

Universal Credit eventually replaces six existing income-based benefits – Jobseeker’s Allowance, Income Support, Employment and Support Allowance, Working and Child Tax Credits and Housing Benefit.

As part of the accelerated roll out announced by the Secretary of State, Iain Duncan Smith in September, over 150 Jobcentres will come on board in the next 2 months. It will then be available in all Jobcentres by this time next year.

And on the eve of this national roll out, new research shows that Universal Credit is getting people into work more quickly and so helping them to earn more.

Work and Pensions Secretary, Iain Duncan Smith said: “This government’s welfare reforms have saved the taxpayer £50 billion and restored fairness to the system.

“The centrepiece of these reforms – Universal Credit – begins national roll out tomorrow. This landmark event is a key part of our long term economic plan, which guarantees you will always be better off in work than on benefits.

“The evidence today shows that under Universal Credit, people move into work more quickly and earn more money, giving them increased financial security. It is very impressive that we have seen these results so soon and that this is having a real impact on people’s lives. This is a cultural change which will alter the landscape of work for a generation.”

The government’s research shows that, over a 4 month period, claimants are:

13% more likely to have been in work than those on Jobseeker’s Allowance
earning more money

Similar to previous findings, the report also confirms that new Universal Credit claimants in the expanded sites are more likely than Jobseeker’s Allowance claimants to:

believe the benefit system is encouraging them to find work
take any job they are able to do
spend more time looking for work

Th DWP says that once fully rolled out, Universal Credit will boost the economy by £7 billion every year.

The Research

Read Universal Credit at Work – spring 2015

The research was carried out by tracking claimants from July 2013 to April 2014 in the areas of:

Warrington
Wigan
Oldham
Ashton-under-Lyne

These results based on income data from Real Time Information (RTI) were compared to a similar group of Jobseeker’s Allowance claimants.

Universal Credit Claims

More than 50,000 people have already made a claim to Universal Credit. It is available in 96 jobcentres including all of the north-west and is available to couples too. Claims from families and lone parents are also being taken in 32 sites.

Read the list of places where Universal Credit will be available between February and July 2015

uc-national-expansion

‘Shocking increase’ in food bank usage

New report shows growing demand for emergency food aid

More than 160 groups and organisations are now providing emergency food aid in Scotland. The figure is in a new report from the Poverty Alliance which states changes to the social security system and the introduction of sanctions, as well as low pay and insecure work are some of the main factors behind the growing need for emergency food.

The Cabinet Secretary for Social Justice Alex Neil launched the report at a food bank in his Airdrie constituency yesterday.

The Scottish Government has now provided the Poverty Alliance with £28,941 to carry out further work with emergency food providers. This will enable the Alliance to work with those providers to take forward research findings and to focus more strongly on the causes of food poverty and work towards ensuring people get the help needed to move them away from reliance on food aid provision.

Mr Neil said: “The Poverty Alliance report perfectly demonstrates the impact of UK welfare changes. It is unacceptable that so many have had to resort to foodbanks. Emergency food aid is not a sustainable response to the issue of food poverty and its underlying drivers and it cannot become an established feature of the welfare system in Scotland.”

“We have seen previously in figures from the The Trussell Trust, that there has been a shocking increase in food bank usage. This speaks volumes about the real poverty in our society when people can’t feed their families without help and support from food aid organisations.”

The Poverty Alliance report follows figures from The Trussell Trust which shows a rapid and dramatic rise in the number of people accessing emergency food aid in Scotland.

The Trussell Trust has reported a 12 fold increase in usage of emergency food aid in just three years – in 2011/12 5726 people in Scotland accessed food aid, while in 2013/14 that figure was 71,428.

The Poverty Alliance report concludes that more effort should be concentrated on how emergency food aid providers can better connect people with mainstream support services. Providers working in close partnership with other services have been shown to offer better support to those in need, connecting them to the advice and support required to address underlying issues which have led them to access emergency food aid in the first place.

Director of The Poverty Alliance Peter Kelly said: “We need to build on the good work that food aid providers are already doing. Volunteers are providing help to people experiencing real difficulties in often complex circumstances. There is a need to develop partnership working between emergency food aid providers to share ideas, experiences and good practice.

“In the longer term we need to ensure that we are developing policy solutions that address the root causes of food poverty. The support from the Scottish Government will help the Poverty Alliance ensure that those who are on the frontline tackling food poverty are able to contribute to finding these solutions.”

The Trussell Trust Scotland Network Manager Ewan Gurr added: “It has been a pleasure to work alongside and support the research carried out by our colleagues at the Poverty Alliance and we appreciate the consistency of the Scottish Government as they explore creative ways to tackle food poverty in Scotland.

“The voluntary sector, largely, has an openness to exploring fresh ways in which we can enhance the level of support people are offered. We welcome the report and believe it is important for us, as well as other food providers, to digest the findings. It has always been my ultimate desire that our foodbanks are places where dignity is restored, hope is revived and the support is comprehensive and robust.”

To help food aid providers develop a better understanding of the range of support available for users of emergency food aid and identify additional support, the Poverty Alliance has developed a web based resource to assist those delivering emergency food aid better link with mainstream services such as Citizen’s Advice Scotland as well as with other information and links to key support services at www.foodaidscotland.org

Civic Scotland urges halt to Universal Credit roll-out

An open letter to Iain Duncan Smith:

We – the undersigned – are writing with a united voice from across civic Scotland to call on the UK Government to immediately suspend the further implementation of Universal Credit in Scotland until the process of legislating for new powers for the Scottish Parliament is complete.

We know from the Smith Agreement that the bill for further powers that is currently being drafted, will include significant new welfare powers. The detail of how these powers will interact with the Universal Credit system will be complex and require careful consideration and planning. The legislation around welfare is complex and is regularly being adapted: since the enactment of the Welfare Reform Act 2012, there have already been over 40 Statutory Instruments passed by Westminster to bring into force many of its provisions.

Any system of welfare has to be safe and secure. Driving through Universal Credit in Scotland at this stage will create unnecessary administrative complication in an already complex process. The sensible way to roll out Universal Credit in Scotland is to do it once, when the Scotland-specific elements have been carefully planned and incorporated into it. This would avoid wasting precious time and scarce resources, and would protect vulnerable people from bureaucratic change that could wreak havoc.

A key recommendation of the Smith Commission was to significantly improve intergovernmental working between Westminster and Holyrood; this is a golden opportunity to do just that. So we ask you to act immediately to suspend the next phase of the roll-out of Universal Credit in Scotland, before it is scheduled to start in February.

Our diverse, united voices demonstrate that our call is not about politics. It is about protecting the most vulnerable people in our society and creating an effective, robust new system for delivering welfare. Our call is about responsible, effective governance.

Mary Taylor, Chief Executive, SFHA on behalf of my 56 co-signatories, listed below:

Age Scotland – Brian Sloan, CEO

Business for Scotland – Brandon Malone, Interim Chair

Church of Scotland – Rt Rev John Chalmers, Moderator of the General Assembly

Coalition of Care Support Providers in Scotland – Annie Gunner Logan, Director,

Common Weal – The Board

Constitutional Commission – John Drummond, Chairman

Council of Mortgage Lenders – Kennedy Foster, Policy Consultant, Scotland

Cyrenians – Ewan Aitken, CEO

Development Trusts Association – Ian Cooke, Director

East Lothian Tenants and Residents Panel – Mark Ormiston, Chair Person

Edinburgh Tenants Federation – Betty Stevenson, Convenor

Engender – Emma Ritch, Executive Director

Food Train – Michelle McCrindle, CEO

Glasgow & West of Scotland Forum of Housing Associations – David Bookbinder, Director

Health & Social Care Alliance Scotland – Ian Welsh, CEO

Inclusion Scotland – Bill Scott, Director of Policy

Money Advice Scotland – Yvonne MacDermid OBE, CEO

Quarriers – Alice Drife, CEO

Scottish Association of Social Work – Trisha Hall, Country Manager

Scottish Children’s Services Coalition – Sophie Pilgrim, Member

Scottish Community Alliance – Angus Hardie, Director

Scottish Council for Voluntary Organisations – Martin Sime, CEO

Scottish Out of School Care Network – Irene Audain MBE, CEO

Scottish Trade Unions Council – David Moxham, Deputy General Secretary

Scottish Women’s Aid – Lily Greenan, CEO

Sense Scotland – Andy Kerr, CEO

Social Enterprise Scotland – Fraser Kelly, CEO

Social Firms Scotland – Pauline Graham, CEO

St Martins Parish Pastoral Council, Tranent – Fr James Smith. Parish Priest

The Equality Network – Tim Hopkins, Director

The Jimmy Reid Foundation – Bob Thomson, Convener

The Poverty Alliance Peter Kelly, Director

The Wise Group – Laurie Russell, CEO

The Trussell Trust – David McAuley, CEO

Turning Point Scotland – Martin Cawley, CEO

Who Cares? Scotland – Duncan Dunlop, CEO

Voluntary Action Scotland – Calum Irving, CEO

Voluntary Health Scotland – Claire Stevens, CEO

YouthLink Scotland – Jim Sweeney, CEO

Zero Tolerance – Laura Tomson, Co-director

Signatories from Housing Assoc. due to be part of the next stage of Universal Credit roll-out:

ARK Housing Association – Jane Gray, CEO

Barony Housing Association – Rebecca Wilson, CEO

Bield Housing & Care – Brian Logan, CEO

Blackwood – Fanchea Kelly, CEO

Cairn Housing Association – Jason MacGilp, CEO

Castle Rock Edinvar Housing Association – Alister Steele, Managing Director

Dunedin Canmore Group – Ewan Fraser, CEO

Hanover (Scotland) Housing Association – Helen Murdoch, CEO

Knowes Housing Association – Pierre De Fence, Director

Lister Housing Co-operative – Alistair Cant, Director

Manor Estates Housing Association – Lynn McDonald, Director

Melville Housing Association – Andrew Noble, CEO

Prospect Community Housing – Brendan Fowler, Director

Trafalgar Housing Association – Paul McShane, Director

Trust Housing Association – Bob McDougall, CEO

West Granton Housing Co-operative – Gerry Gillies, CEO

Government hails drop in benefit dispute waiting times

New figures show the average waiting time for disputes against benefit decisions have dropped substantially.

New figures show the average waiting time for disputes against benefit decisions have dropped substantially, from over 6 months to under a fortnight on average, thanks to a new and quicker system introduced by the Westminster government.

Ministers last year fundamentally reformed the way the Department for Work and Pensions manages benefit disputes – introducing a system called mandatory reconsideration, where officials look again at decisions and any additional evidence before it goes to an appeal tribunal.

It has radically speeded up the appeals process – removing the need for many people to rely on tribunals which take on average over 6 months to reach decisions – and can sometimes take as long as a year.

Streamlining of the disputes process is part of the government’s long-term plan to reform welfare and ensure benefit support is better targeted at those who need it most. The government currently spends around £94 billion a year on working-age benefits.

Work and Pensions Minister Mark Harper (pictured above) said: “Cutting the time people are waiting to resolve benefit disputes from over 6 months to an average of just 2 weeks is good news for claimants and the taxpayer.

“Fewer appeals going to tribunal avoids protracted and costly procedures for the taxpayer and the claimant. Our reconsideration system now makes sure people who are entitled to benefits get them sooner.

“As part of the government’s long-term economic plan, we are committed to helping as many people into work as possible, rather than just writing them off on out-of-work benefits as happened in the past. We also want to make sure we help and support those too sick to work, which we are doing.”

Claimants now have the chance to challenge a decision if they feel it is incorrect and provide additional evidence at the earliest possible opportunity.

The latest statistics show that the proportion of people appealing to a tribunal against ESA decisions have dropped sharply by 86% between July and September 2014 – compared to the same period last year.

98% of all mandatory reconsideration requests made between the end of October 2013 and the end of October 2014 have been re-examined and cleared.

Welfare reform advice fund to top £4 million

More cash to help advise poverty-stricken Scots

Citizens Advice Scotland (CAS) will receive an additional £1.5 million to alleviate Westminster’s welfare reform changes, Social Justice Secretary Alex Neil confirmed today.

The Scottish Government funding comes on top of £2.5 million it has allocated to support CAS’s Welfare Reform Mitigation Fund between 2013-2015.

The fund was established to offer a range of services for local Bureaux across Scotland, including additional resources to support the move to online claims.

The additional £1.5 million will allow CAB to employ more staff, operate longer opening hours, provide more training for advisers and recruit more volunteers across the 200 CAB service points in operation across Scotland.

According to CAS, in the first year over 17,500 people were helped with over 55,000 issues. The service now sees an additional 6,000 clients every three months thanks to Scottish Government funding.

CAB advisers can provide support on a wide range of issues, but most recently the top three areas which clients have requested help with have been benefits, debt and tax issues.

The Scottish Government has set aside £104 million in next year’s budget to tackle poverty and inequalities including £33 million to the Scottish Welfare Fund.

Alex Neil said: “Westminster’s programme of austerity is placing intolerable strain on Scottish families and individuals. Many feel stressed, isolated and at their wits end. That is why supporting the provision of advice services is a central plank of the Scottish Government’s approach to welfare reform mitigation.

“Scottish Citizens Bureaux staff are dealing with an increased volume of calls with thousands of people seeking advice as UK Government welfare reform changes hit the most vulnerable.

“CAB have an unequalled track record of delivering free expert, impartial advice and its national network of advice centres will ensure that this funding reaches every corner of Scotland.

“To create a more prosperous and fairer society in Scotland, full responsibility over welfare policy is the only way for us to properly tackle poverty.”

Margaret Lynch, Chief Executive, Citizens Advice Scotland said: “This funding means that CAB are helping get money into the purses and pockets of our citizens, supporting people to navigate their way through a complicated benefits system, and signpost them to other much needed services such as foodbanks.

“Bureaux see complicated cases and can be frustrated by maladministration, delays to benefits, and the sanctioning of benefits which lead to cases of destitution and desperation. CAB advice has never been so needed and people know they can depend on us for support at their time of need.”

Cold comfort: millions to benefit from winter weather support

Extra government help as the Cold Weather Payments season begins

An estimated 4 million people are in line for extra government help this year to turn up the heating during the coldest snaps, as the Cold Weather Payments season begins today (1 November 2014).

Poorer pensioners and low-income households, which include disabled people or children under the age of 5, could be due a £25 Cold Weather Payment each time temperatures either dip below an average of zero degrees Celsius for 7 consecutive days, or are forecast to do so.

The latest figures show that more than £700 million has been paid out to vulnerable people under this scheme since 2010 through some 28 million separate payments.

The Westminster government’s permanent increase to £25 means that an additional £466 million has been paid out – 3 times the amount that would have been paid if Cold Weather Payments had remained at their previous rate of £8.50.

DWP Minister Steve Webb said: “It is vital that pensioners and vulnerable people are given extra help to turn up the thermostat and keep warm when temperatures plunge.

“This help, combined with the Winter Fuel Allowance and Warm Home Discount Scheme, is making a real difference to help the most vulnerable people in our society.

“In most cases, Cold Weather Payments are paid automatically to those eligible. But I urge anyone, especially older people who might be missing out on Pension Credit, to call us.”

There are up to 1.6 million pensioners who may be entitled to Pension Credit who are not currently claiming it and who could be eligible for Cold Weather Payment as a result.

Who qualifies?

Pensioners on Pension Credit will usually qualify for the scheme. Some people on other benefits may also qualify for a Cold Weather Payment, including:

Income Support
income-based Jobseeker’s Allowance
income-related Employment and Support Allowance
Universal Credit

People can find out if they are due a Cold Weather Payment by calling

0800 99 1234

This number can also be used to claim Pension Credit and Housing Benefit without having to sign a form.

Find out more about Cold Weather Payments

A visit to Granton could improve your health – and maybe your wealth!

A visit to Granton Information Centre could improve your health – and may also improve your wealth! The local advice centre received top marks from clients in a satisfaction survey conducted over the summer.

Highlights of the survey include:

• Around 71% of GIC clients have a medical condition – but almost half of them feel GIC has helped to bring about an improvement in their health

• 48% of clients received additional income following GIC’s intervention – and with another 22% awaiting decisions it’s very likely that this figure will rise to over half. Additional income includes both one-off payments and ongoing benefits entitlements – ranging from a few pounds to five-figure sums.

• 97% of clients would recommend GIC’s services to others

• 96% found GIC assistance ‘very helpful’, 98% found staff ‘very approachable’ and 74% found the help and support they had received ‘more than expected’.

Two hundred clients were chosen at random from GIC’s live cases database and invited to participate in the Satisfaction Survey, which was carried out over the summer. The results are based on the final total of 108 respondees.

GIC manager Caroline Pickering said: “There has been an increased demand on GIC’s service over the past few years and our management committee thought this would be an ideal time to review the services we provide – to look at what we are doing, what works well and what can be improved.

“The best people to guide us in this are the people who use those services, so we are very pleased with the positive results of the survey. It’s great for staff to be recognised for the hard work they do. Some of the comments we received from grateful clients were really touching.”

GIC chairperson John Mulvey said: “We know the staff are working exceptionally hard in difficult circumstances so we’re delighted to see how much service users and the wider community appreciate their efforts. The organisation has been working in North Edinburgh for thirty years now but it’s clear that GIC’s services are needed as much today as they ever were.”

Don’t lose out: tax credits deadline looming

With the tax credits renewal deadline of 31 July just ten days away, HMRC has revealed the top 10 excuses for not renewing tax credits claims.

Excuses given by claimants to HM Revenue and Customs (HMRC) for missing the deadline include:

I didn’t need the money because I’d met a rich bloke, but he dumped me
My mum usually does this for me
The form was locked in the boot of my car, and then my car caught fire
My baby used the paperwork as a colouring book
My dog ate the form
I got confused with the 31 January Self Assessment deadline
I booked the last two weeks of July for a holiday and forgot all about it
I’ve been in hospital but am feeling much better now
I was unable to get income details from my employers in time
I thought I’d already renewed

Claimants have until the 31 July deadline to renew, or their payments might end – last year more than 650,000 failed to renew on time. This year, for the first time, claimants can renew online, at GOV.UK, as well as being able to renew by post and phone.

Nick Lodge, Director General of Benefits and Credits, HMRC, said: “By 15 July over 203,000 claimants have renewed online. It’s a quick and easy way to do it. Renewing tax credits on time is important. People who don’t renew by the deadline can, and do, lose their payments.”

HMRC asks all claimants to check the accuracy of the information in their renewals pack, and to tell the department about any changes to their circumstances that they haven’t already reported, such as to their working hours, childcare costs or pay.

Granton Information Centre’s Caroline Pickering said: “There has been quite a big media campaign to remind people that they must renew their claims, and it really is important that they do so by 31 July. Many of our clients first approach us with money problems, and any loss of income can have really serious consequences for families who are often living on the tightest of budgets”.

Call for ‘living wage’ if Scotland says ‘YES’

An expert group on welfare set up by the Scottish government has recommended a substantial rise in the minimum wage. It said the rate received by the lowest paid should go up by more than £1 per hour if Scotland votes for independence.

The recommendation from the Scottish government’s advisory group was that the minimum wage should match the ‘living wage’ within five years of independence – a rise from £6.31 to £7.65 per hour.

Responding to the latest report, Deputy First Minister Nicola Sturgeon said support to get people into work, action to make work pay and the provision of a strong and decent safety net for those who are unable to work should be the focus of the welfare system in an independent Scotland.

The independent Expert Working Group on Welfare’s second report outlines a vision for a fairer, simpler and more personal welfare system and provides nearly 40 recommendations for change following independence.

The Deputy First Minister confirmed that in an independent Scotland the current government would take forward recommendations, including those to improve support for carers, restore the link between benefits, tax credits and the cost of living and abolish the current Work Capability Assessment.

She also confirmed that the Scottish Government would carefully consider the Group’s recommendations on the minimum and living wage, introduction of a new Social Security Allowance and replacement of the Work Programme with more targeted support to help people find and sustain employment.

Ms Sturgeon said: “I warmly welcome the independent Expert Working Group’s report and thank the members for their significant contribution. The Group’s report includes a wide ranging package of recommendations which would help us create a welfare system in an independent Scotland that better meets our needs.

“As part of their discussions, the Group have engaged with a wide range of people and organisations. It is clear they have listened closely not only to how people feel about welfare, but also how the current reforms are affecting their lives.

“In particular, I strongly endorse the Group’s view that the welfare system should act as a strong safety net and a springboard to a better life. They are right when they say that work should be the best route out of poverty for most people but that the rise in in-work poverty needs to be addressed if this is to be the reality.

“Following a vote for independence, we would be committed to taking on several recommendations straight away to deal with those aspects of the current system that are pushing so many people into poverty.”

The Government would:

• Increase Carers’ Allowance to £72.40 per week, the same rate as Jobseeker’s Allowance for those aged 25 or over. This would amount to an extra £575 a year for the 102,000 people in Scotland who are eligible to claim the allowance.

• Re-establish the link between benefits and the cost of living, with benefits and tax credits being increased each year by the Consumer Prices Index of inflation.

• Abolish the ‘Bedroom Tax’.

• Replace the current system of sanctions with one that is fairer, more personalised and positive.

• Abolish the current Work Capability Assessment that determines the ability to work of the sick and disabled.

• Establish a National Convention on Social Security at the start of 2015.

The Government will also carefully consider the Group’s other recommendations. These include:

• Increasing the National Minimum Wage to equal the Living Wage and with reductions in Employers’ National Insurance contributions to help businesses make this transition.

• Replacement of the Work Programme with new initiatives developed in partnership with those out of work to help them find, and stay in, employment.

• Introducing a new Social Security Allowance that would bring together existing benefits but which would exclude Housing Benefit.

• Better supporting those with long-term disabilities and illness into work.

The Deputy First Minister added: “We are committed to mitigating the harmful effects of Westminster’s welfare reforms where we can, such as securing the transfer of powers over discretionary housing payments to the Scottish Government, allowing us to help people struggling with the Bedroom Tax.

“The report recognises the increased pressures of in work poverty and some of the difficulties in the current labour market. These are challenges all countries face but we are committed to tackling them head on wherever possible. The growing numbers of people in work but still facing poverty is extremely worrying. They need our support and one way to do this, as the Group suggests, would be through making the Living Wage the National Minimum Wage. We will be looking closely at this proposal.

“We will be considering the Group’s recommendations to replace the Work Programme with more innovative, locally-based schemes, designed to help people find jobs and, importantly, stay in work.

“We will also look at the introduction of a new Social Security Allowance, but would keep Housing Benefit separate from this.

“Our focus will be on prevention rather than dealing with existing symptoms, to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have the powers to deliver progressive reform of the Welfare State – only with independence will we have the opportunity to create a welfare system that is fairer and works for all the people of Scotland.”

However Scottish Lib Dem leader Willie Rennie said people who expected big changes to welfare after independence would be “disappointed” by the report, while Labour maintains that being part of the bigger UK economy offers greater financial security. Scottish Labour’s Jackie Baillie said: “Once again we have uncosted promises from the SNP. You can’t have more generous welfare at the same time as you are cutting taxes – it simply doesn’t add up”.

Housing payment cap powers to be transferred

More help for 72,000 Scottish households

Thousands of Scots families can be given more ‘Bedroom Tax’ assistance following discussions between the Westminster and Scottish governments. The UK government has offered to transfer power over the housing payment cap to Holyrood, it was announced yesterday.

Housing help for people on benefits – known as Discretionary Housing Payments (DHPs) – is currently reserved to Westminster and administered by local authorities in Scotland. This power will now transfer to Scotland, however, and the Scottish Government is now urging Westminster to transfer these powers as soon as possible.

The Scottish Government has already spent up to the previous legal limit in order to mitigate the effects of the ‘Bedroom Tax’. Once the powers are transferred, a total of £50 million can be invested to help the 72,000 households in Scotland who are suffering from the effects.

Welcoming the news, Deputy First Minister Nicola Sturgeon said:

“We had already set aside the money to be able to help every household in Scotland affected by the ‘Bedroom Tax’ – once we have the powers, we will be able to use it and provide vital assistance to thousands of hard-pressed Scots.

“I am delighted that in future anyone who has been affected by this unfair policy will receive the help they need and would encourage them to contact their Local Authority to apply for assistance through the DHP scheme.

“We will never turn our back on people in need, and I am pleased to finally be able to get on and help people. But the fact is that this decision has taken far too long. We have been pressing since January for Iain Duncan Smith to remove this cap – and at last Westminster has seen sense and have given us what we requested. We will now work to ensure the law is changed as quickly as possible.

“The DHP scheme is the only legal way – under the powers that Scotland currently has – to provide regular financial payments to people on housing benefit. But the only way to get rid of the ‘Bedroom Tax’ for good is through the powers of an independent Scottish Parliament.

“We know that Scots want welfare decisions to be made and taken by the Scottish Parliament. The ‘Bedroom Tax’ has been rejected by people right across Scotland, yet is still being imposed on us by the UK Government.

“With independence we will have the opportunity to create a welfare system that really works for us.”

However the UK Government says that their willingness to transfer the power to set the cap on Discretionary Housing Payments (DHP) in Scotland demonstrates a ‘commitment to taking a pragmatic approach to devolution and to engaging intensely with local authorities in Scotland.’

In a letter to Nicola Sturgeon, Scotland Office Minister David Mundell has offered to transfer the power to the Scottish Government through a Section 63 Order which will require the agreement of the UK and Scottish Governments before being approved by both the UK and Scottish Parliaments.

If the Scottish Government chooses to accept this offer, it will have the flexibility to pass on more funding from its existing block grant to local authorities – it will be up to to the Scottish Government and local authorities how they choose to allocate their money.

As things currently stand, DHPs can be used by local authorities across Great Britain to provide additional funding for people in receipt of housing benefit who need extra support. At present each local authority must operate within a formula-based spending cap set by the Department for Work and Pensions. The proposal from the UK Government would mean that the Scottish Government would have the power to set the DHP cap for Scottish local authorities in future.

Mr Mundell said: “I have completed a programme of visits to all Scottish local authorities and believe that transferring this power to the Scottish Government is the correct thing to do.

“The UK Government believes in taking a pragmatic approach to devolution and we believe in a United Kingdom that gives Scotland the best of both worlds. I hope that officials from both governments will now be able to take this forward.”