Like-for-like benefit to support seamless transition
Plans for a Scottish Adult Disability Living Allowance, a new benefit to provide continued support to around 66,000 adults with a disability or long-term health condition, have been unveiled.
Under new proposals, eligible people who receive Disability Living Allowance (DLA) through the UK Government’s Department for Work and Pensions would have their award transferred automatically to the new Scottish benefit. They would then have the opportunity to apply for Adult Disability Payment if they choose.
Legislation to create the ‘closed’ benefit – for existing recipients of the Disability Living Allowance that it supersedes – will be laid in the Scottish Parliament this year.
Social Justice Secretary Shirley-Anne Somerville said: “I’m pleased that we can progress plans to bring forward legislation to create a Scottish Adult Disability Living Allowance and give people the opportunity to remain on this benefit for as long as they are eligible.
“Once transferred, people can continue to be paid Scottish Adult Disability Allowance or apply for our flagship Adult Disability Payment if they prefer.
“Around 137,000 people are now receiving our Adult Disability Payment and it has provided almost £462 million to disabled people since it was launched in 2022.”
Scottish Adult Disability Living Allowance will be a ‘closed’ benefit, available only to those whose awards are transferred onto it and not open to new applicants – who should instead apply for Adult Disability Payment.
Under these proposals, eligible people who receive Disability Living Allowance through the UK Department for Work and Pensions would have their award transferred automatically to the Scottish payment.
Work to transfer the awards of people in Scotland from Carer’s Allowance to Carer Support Payment has begun.
Carer’s Allowance, paid by the Department for Work and Pensions (DWP), is being replaced by Carer Support Payment paid by Social Security Scotland.
The transfer from Carer’s Allowance to Carer Support Payment will happen gradually with all awards expected to be transferred by Spring 2025.
People do not need to do anything as their award will transfer automatically. The amount they receive will not change.
Both the DWP and Social Security Scotland will write to people in advance to let them know that their award will be transferring.
Carers should continue to report any changes in their circumstances to the DWP until they receive a letter from Social Security Scotland telling them their award has transferred.
Carer Support Payment provides £76.75 a week to eligible carers. The benefit is available to new applicants in Dundee City, Perth and Kinross and the Western Isles.
Carers who live outside of those areas can apply for Carer’s Allowance from the Department for Work and Pensions (DWP).
Carer Support Payment will be available in more areas from later in 2024 and across Scotland by Autumn 2024.
More information is available at mygov.scot/carer-support-payment.
Reforms to restrict care workers from bringing family members are now in force, while care providers are required to register if they are sponsoring migrants
New rules to radically cut net migration and tackle visa abuse are now in force as part of the government’s plan to bring down unsustainable levels of legal migration.
Care workers will now be restricted from bringing dependants, after a disproportionate 120,000 dependants accompanied 100,000 workers on the route last year.
Care providers in England acting as sponsors for migrants will also be required to register with the Care Quality Commission (CQC) – the industry regulator for Health and Social Care – in order to crack down on worker exploitation and abuse within the sector.
It forms part of a wider package of measures, which is being implemented as soon as possible, which means a total of 300,000 people who were eligible to come to the UK last year would now not be able to do so.
Home Secretary, James Cleverly MP, said: “Care workers make an incredible contribution to our society, taking care of our loved ones in times of need. But we cannot justify inaction in the face of clear abuse, manipulation of our immigration system and unsustainable migration numbers.
“It is neither right nor fair to allow this unacceptable situation to continue. We promised the British people action, and we will not rest until we have delivered on our commitment to bring numbers down substantially.
“Our plan is robust but fair – protecting British workers while ensuring the very best international talent can work and study here, to add value to our society and grow the economy.”
There is clear evidence that care workers have been offered visas under false pretences, travelling thousands of miles for jobs that simply don’t exist or to be paid far below the minimum wage required for their work, exploiting them while undercutting British workers.
These changes come into force as the government is set to lay rules in Parliament later this week (14 March) to prevent the continued undercutting of British workers, which includes raising the salary threshold that a skilled worker must meet in order to get a visa and removing the 20% ‘going-rate’ discount for migrant workers in shortage occupations.
Minister for Social Care, Helen Whately MP, said: “International care workers make an invaluable contribution caring for our loved ones, but international recruitment and more immigration are not long-term solutions to our social care needs. These rules provide a more ethical and sustainable approach.
“We are boosting our homegrown workforce by reforming social care careers. These include the first ever national career path for care workers and a new care qualification.
“Our reforms will grow the domestic workforce and build on our success over the last year that saw more people working in social care, fewer vacancies and lower staff turnover.”
The Home Secretary will also, today, commission a review of the graduate route for international students to prevent abuse, protect the integrity and quality of UK higher education, and ensure it works in the best interests of the UK.
He will ask the Migration Advisory Committee (MAC) to ensure that demand for the graduate route, through which a total of 175,872 visas have been granted since it was established, is fit for purpose and focused on attracting the best and brightest to the UK.
This follows concerns raised after analysis by the MAC revealed that the number of international postgraduate students attending institutions with the lowest UCAS entry requirements has increased by over 250% between 2018 and 2022.
This follows reforms to student visas which came into force at the start of January, ending the ability of nearly all postgraduate students to bring dependants to the UK.
The government expects to see a drastic fall in student dependant applications this year, with early indications already of this downward trend.
In further changes, the Shortage Occupation List (SOL) will be abolished, to be replaced with a new Immigration Salary List on 4 April. This follows a recommendation from the independent MAC, which has also advised the government on which occupations should be temporarily added to the new list initially.
The UK government has been clear that roles should only be included where they are skilled and in shortage, and that no sector should be permanently reliant on immigration. Inclusion on the list must not serve to reduce pay and undermine the recruitment of British workers.
From 4 April, the minimum salary required for those arriving on the Skilled Worker visa will increase from £26,200 to £38,700 – a 48% increase.
This will further drive down numbers, reduce pressure on public services and prevent the undercutting of British workers by employers who look to recruit cheap labour from overseas.
The UK government’s ‘robust’ approach will prioritise the most talented and highly-skilled people from abroad who will add value and contribute significantly to growth of the economy, whilst encouraging employers to invest in training, upskilling, and recruiting domestic workers.
The minimum income requirement for family visas will also rise, starting at £29,000 from 11 April. By early 2025 this will be increased to £38,700, helping to ensure dependants brought to the UK are supported financially.
The UK government has been clear that immigration is not the long-term answer to social care needs and care providers should hire more British workers. The Department for Health and Social Care is leading a programme of work to grow and support the domestic social care workforce. This includes better training, clearer career paths and improved job prospects through a new accredited qualification.
The Department for Work and Pensions is taking decisive action in one of the biggest employment interventions in a generation through its £2.5 billion Back to Work plan, which will help 1.1 million people who are long-term unemployed or long-term sick or disabled break down barriers to work.
Pension funds to publicly disclosure how much they invest in UK businesses Vs those overseas.
Schemes performing poorly for savers won’t be allowed to take on new business from employers.
Changes are part of the government’s plan to improve outcomes for savers and consolidate the pensions market.
The Chancellor has today (2 March) announced pension fund reforms as a further step in the government’s plan to boost British business and increase returns for savers. This includes requirements for Defined Contribution (DC) pension funds to publicly disclosure their level of investment in the UK.
The government’s auto enrolment rollout has driven a huge growth in the amount of investment entering UK pension funds, from less than £90 billion in 2012 to around £116 billion in 2022. However, the disclosure requirements for DC pension funds are currently inconsistent across the market and do not require a breakdown of UK investments, sometimes making it difficult for policymakers and savers to understand where this money is invested.
By ensuring pension funds publicly disclose where they invest and the returns they offer, it will make it possible for employers and savers to compare schemes and make informed choices. The government is embarking on Value for Money (VFM) pension fund reforms to improve outcomes for savers and consolidate the DC pensions market. The reforms will ensure that pension managers are focused on securing good returns for savers.
Under the plans:
By 2027 DC pension funds across the market will disclose their levels of investment in British businesses, as well as their costs and net investment returns.
Pension funds will be required to publicly compare their performance data against competitor schemes, including at least two schemes managing at least £10 billion in assets.
Schemes performing poorly for savers won’t be allowed to take on new business from employers, with The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) having a full range of intervention powers.
The plans are subject to a consultation by the Financial Conduct Authority and build on the Government’s Mansion House compact, that encouraged pension funds to invest at least 5% of their assets in unlisted equity.
Chancellor Jeremy Hunt said: “We have already started on a path to drive growth, unlock capital for our most promising companies and improve outcomes for savers – and these new rules mean employers and savers can see how their money is invested and how the returns compare to other schemes.
“British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”
Secretary of State for Work and Pensions, Mel Stride MP, said: “The incredible success of automatic enrolment has opened up a huge opportunity to grow the economy, boost British businesses and fuel our futures. It has helped us transform the pensions landscape over the last decade.
“And our Value for Money framework will take this one step further, focusing pension managers on their number one priority – securing the best possible returns for savers – as well as providing a boost to the wider economy.”
Julia Hoggett, CEO of London Stock Exchange plc and Chair of the Capital Markets Industry Taskforce, said:“Pension holders should know how much is being invested in equities in their home market.
“Investing in UK companies ultimately benefits those companies and the returns they are delivering, which supports the economy and the country in which pension holders live, to everyone’s benefit and in everyone’s interest.”
James Ashton, Quoted Companies Alliance chief executive, said:“There is huge upside to aligning the UK’s financial assets with innovative homegrown ventures that could be tomorrow’s world beaters.
“We welcome these new disclosures and hope they are the first step to many UK pension funds discovering the numerous high-potential companies whose shares are traded on their doorstep.”
Chris Hayward, Policy Chairman of the City of London Corporation, said: “The Mansion House Compact aims to channel long-term capital from pension funds into growth companies.
“It will support high-growth companies to start, scale and stay in the UK. We welcome the Government’s action to support this objective which will turn the dial to drive investment into UK businesses. It is vital that the pension ecosystem focusses on value for money and long-term returns for savers.”
A bold new government-backed review has set out a vision for workplace culture changes to support autistic people to start and stay in work
Review sets out 19 recommendations to support more autistic people to start, stay and succeed in work.
Despite most autistic people wanting to work, just 3 in 10 are currently in employment due to stigma and lack of understanding of their needs.
More neuro-inclusivity in the workplace can help fill vacancies and grow the economy by unlocking the potential of thousands more people.
A bold new government-backed review has set out a vision for workplace culture changes to support autistic people to start and stay in work.
DWP figures show only around 30 percent of working age autistic people are in employment, compared with half of all disabled people and 8 in 10 non-disabled people, despite the majority saying they would like to be employed.
Commissioned by Secretary of State for Work and Pensions Mel Stride and led by Sir Robert Buckland KC, the Review’s 19 recommendations for businesses and government include:
signing up for the Autistica Neurodiversity Employers Index to access guidance on designing inclusive processes and procedures
encouraging career progression by developing packages of training focused on autistic staff
improving recruitment by ensuring careers advisers can provide appropriate advice to autistic jobseekers
supporting autistic people who are already in the workplace by producing “autism design guides” to create appropriate premises, furnishings and equipment
working with software suppliers to develop IT systems that meet autistic people’s needs.
The Buckland Review of Autism Employment was supported by charity Autistica and includes the views of hundreds of employers and autistic people.
It sets out how businesses and government can work together over the next five years – whether that is showcasing the successes of autism employment, developing pilot programmes in national and multinational companies, or providing tailored support for autistic staff at work.
Secretary of State for Work and Pensions, Mel Stride MP, said: “I want autistic people to have every opportunity to benefit from work, and recognise that businesses and government must come together if we are to create the cultural change needed to move the dial.
“Backed by the extra employment support provided through our £2.5 billion Back to Work Plan, this report provides employers with practical and inexpensive steps to open up workplaces to autistic people, boost employment rates and, above all, change autistic people’s lives.”
Sir Robert Buckland KC MP said: “It has been a tremendous privilege to compile this report, and to hear from hundreds of autistic people about their experiences. This is all about them, and we couldn’t have done it without their help.
“The review can make a truly radical difference to the lives of autistic people and their families. I call on employers and government to lead this change and make these recommendations a reality.”
It is all part of the Government’s long-term plan to build a stronger economy – which has seen unemployment compared to 2010 decline, with four million additional people in work.
The Government has already succeeded in getting one million more disabled people into employment by 2027, five years ahead of schedule, with tailored support helping claimants realise their potential.
Access to Work grants worth up to £66,000 made working easier for nearly 50,000 people last year. The Government’s flagship Universal Support programme is set to provide up to 25,000 people with highly personalised employment support, working closely with employers to navigate any workplace adjustments required to accommodate individual needs.
Minister for Disabled People, Health and Work, Mims Davies MP, said: “There are so many benefits and positives autistic people can bring to the workplace, and this is matched by what employment can bring to them. We must make sure they get the work opportunities they want and deserve.
“This welcome and important review will help ensure autistic people can thrive and progress in the labour market. I am keen employers get behind these recommendations, and partner with us to truly make our workforce more inclusive and welcoming.”
Minister for Social Care, Helen Whately MP, said: “We want autistic people to have equal opportunities to flourish in society and contribute to the economy.
“For too long there have been too many barriers for them in the workplace; this review is a major step to changing that.
“This builds on our five-year autism strategy and shows our continued commitment to helping autistic people are able to lead happier, healthier and more fulfilling lives.”
The review is the latest milestone in the Government’s mission to make the UK the most accessible place in the world, following the publication of the Disability Action Plan earlier this month, the launch of the Lilac Review, which will investigate the barriers disabled entrepreneurs face, and the longer-term National Disability Strategy, which will transform disabled people’s everyday lives for the better.
It also builds on the Government’s employment and welfare reforms – including the new £2.5 billion Back to Work Plan which will help thousands more disabled people and people with health conditions to start and thrive in work.
£280 million paid since launch of Carer’s Allowance Supplement
A benefit only available in Scotland has delivered over one million payments to unpaid carers, new figures show.
Almost £280 million has been paid to over 150,000 carers since Carer’s Allowance Supplement was introduced in September 2018.
The benefit, one of seven available only in Scotland, was created to recognise the vital role of unpaid carers.
Eligible carers get payments twice a year, normally in June and December. In the 2023-2024 financial year each payment was £270.50.
Carer’s Allowance Supplement is paid automatically to people who are getting Carer’s Allowance or Carer Support Payment on a on a particular date.
Carer Support Payment, paid by Social Security Scotland, was introduced in three local authority areas in November last year.
It is replacing Carer’s Allowance from the Department for Work and Pensions in Scotland and will be rolled out across the country in Autumn 2024.
Social Justice Secretary Shirley-Anne Somerville said:“Unpaid carers make a significant contribution to society, often at the expense of their own health and wellbeing. The Scottish Government introduced Carer’s Allowance Supplement to recognise this contribution.
“I am pleased we have now made our one millionth payment and have given carers in Scotland almost £280 million of additional support.
“Carer’s Allowance Supplement is part of our wider package of support including Carer Support Payment and Young Carer Grant – another Scotland-only benefit.
“The Scottish Government recognise the pressure the cost of living crisis has placed on household budgets which is why we are continuing to allocate around £3bn a year to policies that tackle poverty and protect people as far as possible.
“This puts more money into the pockets of families who need it, which in turn is good for the economy.”
To find out about eligibility for Carer’s Allowance Supplement visit mygov.scot/carers-allowance-supplement or call Social Security Scotland free on 0800 182 2222.
Around 700,000 families, who receive tax credits and no other qualifying benefits, will receive their £299 Cost of Living Payment from today, 16 February 2024, to help with everyday costs.
HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between 16 and 22 February 2024.
More than7 million eligible UK households have already received the £299 payment directly from the Department for Work and Pensions (DWP), which is paying its customers between 6 and 22 February 2024.
This is the third of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023/24 and comes as part of the UK Government’s £104 billion cost of living support package.
These payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
Myrtle Lloyd, HMRC Director General for Customer Services, said:“The £299 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. To make things as simple as possible, the payment is made automatically with no action required from HMRC’s customers.”
The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.
If customers have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 23 February to contact us. This is to allow time for their bank, building society or credit union to process the payment.
Receiving a previous Cost of Living Payment does not guarantee customers will get this payment. Customers must meet the individual eligibility criteria for each payment, as published on GOV.UK.
Payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits. They do not need to do anything to receive a payment. They do not need to contact HMRC or apply for the payment.
Customers should beware of scams targeting Cost of Living Payments. If someone contacts them about this payment saying they are from HMRC or DWP, it might be a scam. People can check advice on spotting scams by visiting GOV.UK and searching ‘HMRC phishing and scams’. They can also check on GOV.UK that any contact is genuinely from HMRC.
Additional information
The Cost of Living Payments – worth £900 in total in 2023/24 – come on top of a significant package of support which has been delivered since autumn 2021. Including:
Cutting taxes for over 29 million working people this year through a 2% cut to Class 1 National Insurance Contributions, worth £450 per year on average.
Cutting taxes for self-employed people by cutting Class 4 contributions, benefitting 2 million people, and abolishing Class 2 contributions, a tax cut worth an average of £350 per year.
Paying three million households the £150 Warm Home Discount this winter and 8.9 million pensioner households up to £600 in Winter Fuel Payments in December last year.
Providing the £650 Cost of Living Payments in 2022/23 and an additional cash boost on top of this payment including £300 to pensioner households; £150 to disabled individuals in 2022 and last year.
Paying around half of the typical household energy bill between October 2022 and July 2023 through our Energy Price Guarantee and £400 support scheme.
Extending the 5p fuel duty cut and cancelling the planned increase – saving the average driver £100 this year.
Increasing the Universal Credit work allowance and cutting the taper rate, which was worth an extra £1,000 a year to families on Universal Credit.
Vulnerable people will continue to be supported with the cost of living from April this year by:
Uprating benefits in line with inflation by 6.7%.
Maintaining the triple lock and increasing the state pension by 8.5% - after the largest ever cash increase last year for around 12 million pensioners.
Investing £1.2 billion to restore Local Housing Allowance rates to the 30th percentile of local market rates, meaning 1.6 million private renters will see nearly £800 in additional help.
Increasing the National Living Wage by its largest ever cash amount in April – worth over £1,800 to the gross annual earnings of a full-time worker – and lowering the age threshold for eligibility by 2 years.
We encourage people in need of additional support over the winter to check their eligibility through the UK Government’s Help for Households website for the various cost of living schemes that are place.
Social Justice Secretary writes to DWP on work capability announcements
Changes to work capability assessments announced in the Autumn Statement are ‘deeply concerning’ and could mean people receive less support based on a change of criteria rather than a change in their health, Social Justice Secretary Shirley-Anne Somerville has said.
Writing to DWP Secretary Mel Stride, Ms Somerville highlighted how the Scottish Government has taken a different approach with its social security system being based on treating people with fairness, dignity and respect.
Ms Somerville said: “I remain deeply concerned about the changes to the activities and descriptors for ‘getting about’ for Limited Capability for Work, and the mobilising and substantial risk criteria for limited capability for work-related activity.
“The changes you are proposing, including the extension of the sanctions regime, will have very significant additional impact on some of the most vulnerable people in our communities who need our support most.
“In Scotland, we have taken a different approach to devolved employability support; our services remain voluntary, and we want the support we provide to be seen as an opportunity, not a threat, with fairness, dignity and respect at its heart.
“In delivering our first devolved employability service, Fair Start Scotland, Scottish Government officials had a close working relationship with Job Centre Plus to ensure we were collectively working to provide support for the people of Scotland.”
The proposals in the UK Government’s Back to Work Plan contain a confusing mixture of devolved and reserved responsibilities, which leave us slightly mystified as to exactly how this is all going to work in practice (writes Fraser of Allander Institute’s MAIRI SPOWAGE):
In his speech, the Chancellor said: “… last week I announced our Back to Work Plan. We will reform the Fit Note process so that treatment rather than time off work becomes the default.
“We will reform the Work Capability Assessment to reflect greater flexibility and availability of home working after the pandemic. And we will spend £1.3 billion over the next five years to help nearly 700,000 people with health conditions find jobs.
“Over 180,000 more people will be helped through the Universal Support Programme and nearly 500,000 more people will be offered treatment for mental health conditions and employment support.
“Over the forecast period, the OBR judge these measures will more than halve the net flow of people who are signed off work with no work search requirements. At the same time, we will provide a further £1.3 billion of funding to offer extra help to the 300,000 people who have been unemployed for over a year without having sickness or a disability.
“But we will ask for something in return. If after 18 months of intensive support jobseekers have not found a job, we will roll out a programme requiring them to take part in a mandatory work placement to increase their skills and improve their employability. And if they choose not to engage with the work search process for six months, we will close their case and stop their benefits.”
These changes have the potential to impact recipients of Universal Credit. The complication is that UC is reserved, while many elements of employment support – the “extra help” that the Chancellor talks about – is, on the whole, devolved.
Because of this, many of the support mechanisms to help people avoid sanctions in England (& Wales in most cases) generated Barnett consequentials, including:
Restart: expand eligibility and extend the scheme for two years
Mandatory Work Placements: phased rollout
Universal Support: increase to 100,000 starts per year
Talking Therapies: expand access and increase provision
Individual Placement and Support (IPS): expand access
Sanctions: closing claims for disengaged claimants & end of scheme review
Fit Note Reform trial
So, in summary, it looks like the sanctions could be applied in a reserved benefit, following support that may or may not be provided by the Scottish devolved employability system as the Scottish Government could choose to spend the money on something else.
We wait for more details from both the UK & Scottish Governments about how this is going to work in practice.
