Work underway to move the benefits of over 66,000 people by end of year
Disability Living Allowance for adults is being replaced by a new Scottish benefit. Work has begun to move the benefit awards of over 66,000 people to Scottish Adult Disability Living Allowance.
The new benefit will now be paid by Social Security Scotland instead of the Department for Work and Pensions.
There will be no gaps in payments or reductions in the support people get because of the transfer.
People getting DLA do not need to do anything as the transfer will happen automatically.
Social Security Scotland will send letters to let people know when their benefit is being moved and another when the move is complete. The transfer process will take four to eight weeks.
Cabinet Secretary for Social Justice, Shirley-Anne Somerville, said: “I am pleased work has begun to transfer the benefit awards of every adult in Scotland currently getting DLA to our new benefit.
“I want to reassure people affected that their payments will transfer safely and securely, with no gaps or reductions to the support they receive.
“The Scottish Government is committed to ensuring everyone gets the financial support they’re entitled to and this has not changed following the UK Government’s announcement on welfare.”
Scottish Adult DLA was introduced to provide support for adults who were still getting DLA on 21 March 2025. Like DLA for adults, it is not open to new applications.
People born after 8 April 1948 can choose to apply for Adult Disability Payment after their transfer to Scottish Adult DLA is complete.
Social Security Scotland recommends anyone thinking of doing this to get independent advice on which benefit is best for them as some people might be better off on one benefit than the other.
Once a decision has been made on their application for Adult Disability Payment they cannot return to Scottish Adult DLA.
Adults of working age who are newly in need of disability support can apply for Adult Disability Payment.
Pensioners can apply for Pension Age Disability Payment, the replacement for Attendance Allowance, in most of Scotland.
Where Pension Age Disability Payment is not yet available, pensioners can apply for Attendance Allowance from the Department for Work and Pensions.
New Scottish benefit for pensioners extends to more areas ahead of national roll out
A new benefit for pensioners is now open for applications in 13 more local authority areas in Scotland.
Pension Age Disability Payment has been extended to Aberdeenshire, Angus, Clackmannanshire, Dundee City, Falkirk, Fife, Moray, Na h-Eileanan Siar (Western Isles), Perth and Kinross and Stirling. It is also now available in all three Ayrshire local authority areas – East Ayrshire, North Ayrshire and South Ayrshire.
The payment first launched in five local authority areas on 21 October 2024 and will be available throughout Scotland from 22 April this year.
Pension Age Disability Payment is for disabled people or those with a long-term health condition that means they need help looking after themselves or supervision to stay safe. It is available to people of State Pension age and is also available to pensioners who are terminally ill.
It is not means-tested and is worth between £290 and £434 a month depending on the needs of the person who gets it (increasing to between £295 and £441 a month from 1 April 2025).
Pension Age Disability Payment is replacing Attendance Allowance from the Department for Work and Pensions in Scotland. Social Security Scotland has started transferring the awards of 169,000 people in Scotland who currently receive Attendance Allowance to the new benefit.
People currently getting Attendance Allowance do not need to take any action; the transfer will happen automatically in phases throughout 2025. Everyone will continue to receive their payments on time and in the right amount.
Social Justice Secretary Shirley-Anne Somerville said:“I urge anyone who thinks they could be eligible for Pension Age Disability Payment to apply.
“It is vital older people who are disabled, terminally ill people or who have care needs get the money they need to help them look after themselves, stay safe and live with dignity.
“The Scottish Government is committed to ensuring everyone gets the financial support they’re entitled to and this has not changed following the UK Government’s announcement on welfare.”
Henry Simmons, Alzheimer Scotland’s Chief Executive said:“It’s great to see Pension Age Disability Payment being rolled out across more areas. At Alzheimer Scotland, we know that living with dementia leads to extra costs so it’s important that those affected can access the financial support they need, when they need it.
“The application support that Social Security Scotland provide is vital for people who are already dealing with the emotional and practical challenges of living with dementia.
“The availability of this support will make a positive difference to people living with dementia, improving their ability to live well with their condition.”
More information about Pension Age Disability Payment including who is eligible and how to apply can be found at: www.mygov.scot/pensiondisability
Pension Age Disability Payment is replacing Attendance Allowance in Scotland. People in Scotland who are getting Attendance Allowance from the Department for Work and Pensions do not need to do anything as their award transfer will happen automatically.
Social Security Scotland will write to people to let them know when this is happening and when this is complete. Social Security Scotland aims to complete case transfer for everyone by the end of 2025.
Until people receive the letter from Social Security Scotland to tell them their transfer is complete, they should continue to report any change in circumstances, including a terminal illness diagnosis, to the Department for Work and Pensions.
Pension Age Disability Payment launched on 21 October 2024 in five pilot areas – Aberdeen City, Argyll and Bute, Highland, Orkney and Shetland. It has rolled out to 13 more areas – Aberdeenshire, Angus, Clackmannanshire, Dundee City, East Ayrshire, Falkirk, Fife, Moray, Na h-Eileanan Siar (Western Isles), North Ayrshire, Perth and Kinross, South Ayrshire and Stirling. The payment will be available throughout Scotland from 22 April 2025.
Eligible people who have been diagnosed with a terminal illness are automatically entitled to the higher rate of care and can apply under special rules for terminal illness. This means that Social Security Scotland will prioritise their application. People who are already getting Pension Age Disability Payment who later receive a terminal illness diagnosis can also report this diagnosis under the special rules for terminal illness.
Pension Age Disability Payment was designed with the people who will be eligible for the benefit and those who support them. Improvements include a streamlined process for people to nominate a third-party representative who can support them in their interactions with Social Security Scotland.
Social Security Scotland can help people to apply, with face-to-face support available from advisers based in communities across the country.
Help is also available from independent advocacy service Voiceability who are funded by the Scottish Government to help disabled people applying for devolved benefits.
Social Security Scotland also has a separate, accelerated application process for people who are terminally ill. This is open to any eligible person who has a terminal diagnosis, no matter how long they’re expected to live. This is different to the Department for Work and Pensions, who only class someone as terminally ill if they are expected to live for 12 months or less. Eligible people automatically get the highest possible amount of Pension Age Disability Payment.
The Scottish Government has made it easier for people to nominate someone to support them in their engagement with Social Security Scotland – something that older disabled people told us was important to them.
Social Security Scotland has started the transfer of 169,000 benefit awards
Pension Age Disability Payment is replacing Attendance Allowance in Scotland.Social Security Scotland has begun transferring the awards of 169,000 people in Scotland who currently receive Attendance Allowance from the Department for Work and Pensions.
People do not need to take any action; the transfer will happen automatically in phases throughout 2025. Everyone will continue to receive their payments on time and in the right amount.
Social Security Scotland will notify people by letter when their benefit has been selected for transfer and it should take up to three months for the transfer from the Department for Work and Pensions. There will be no gaps in payments while people’s awards are being transferred.
Social Justice Secretary Shirley-Anne Somerville said: “The Scottish Government is committed to ensuring that older people who have care needs because of a disability, long-term health condition or terminal illness get the financial support that they’re entitled to.
“As people’s awards start to transfer from Attendance Allowance, to Pension Age Disability Payment, they will be kept informed of this process and treated with dignity, fairness and respect.
“Pension Age Disability Payment is being rolled out across Scotland in phases. If the payment is currently open for new applications in your area and you think you could be eligible for support right now, I would encourage you to apply.
“If the payment is not yet available in your area, you can still apply for Attendance Allowance from the Department for Work and Pensions.”
Pension Age Disability Payment is currently open for new applications in Aberdeen City, Argyll and Bute, Highland, Orkney and Shetland. It will become available in more areas from 24 March before becoming available throughout Scotland from 22 April 2025.
We have heard this week that the UK Government Chancellor Rachel Reeves intends to make cuts to the welfare bill to bring UK Government borrowing down in line with her fiscal rules ahead of the next OBR forecasts due at the end of the month (writes Fraser of Allander Institute’s EMMA CONGREVE).
Reports state that the axe is likely to fall on health and disability related benefits for working age people.
Here we produce a bit of an explainer to get people up to speed on the benefits in scope and what has been happening in recent years.
Which benefits could be in line for cuts?
There are two types of benefits in Great Britain (benefits in Northern Ireland are arranged differently) that working age people with disabilities and ill health can claim.
Incapacity Benefits
The first type is an income replacement benefit that tops up income for families where the disability or health condition limits their ability to work, commonly referred to as incapacity benefits. They are means tested so that the amount you receive depends on your household income and reduces as income (e.g. from a partner’s earnings) rises.
Chart: Caseload of incapacity benefits for working age adults, Scotland
Notes: Universal credit and ESA exclude those in the assessment phase in line with OBR Welfare Trends Report analysis. Northern Ireland not included.
Sources: DWP, ONS
Universal Credit (UC) has been slowly replacing Employment and Support Allowance (ESA) for this group of people since 2018 so the reduction in ESA over time reflects migration over to UC rather than a change in disability/health status.
Disability Benefits
The second type of support for those with disabilities and ill health comes from payments to cover additional costs, for example due to reduced mobility, and are commonly referred to as disability benefits. They are not means tested and people do work whilst they are on these benefits.
In Scotland this type of benefit is now devolved, with Adult Disability Payment (ADP) slowly replacing Personal Independent Payment (PIP). PIP itself was a replacement for Disability Living Allowance (DLA) which no longer takes new applications and has a caseload that is reducing over time.
Chart: Caseload of disability benefits for working age adults, Scotland
Note: Adult Disability Payment started to replace PIP in Scotland from 2022. In England and Wales, PIP remains the main payment.
Source: DWP, ONS, Social Security Scotland
Which benefits are devolved?
Incapacity benefits (UC and ESA) are reserved benefits which means they largely operate in the same way across Great Britian, with the cost of the benefit in Scotland met by the UK Government. Any cuts made by the UK Government would apply in Scotland.
Disability benefits (PIP. SDA and ADP) are devolved, and there are differences in how the benefits operate in Scotland. The Scottish Government meets the costs of the benefit. To offset this, an amount is paid from the UK Government in the block grant, equivalent to the UK Government’s spending in Scotland if the benefits hadn’t been devolved and if spending had grown at the same per capita rate as in England and Wales.
The Scottish Government has to find additional money if expenditure on Scotland starts to diverge from the rest of GB trend due to policy changes (or perhaps, if our population gets relatively sicker).
Any cuts to PIP or SDA made by the UK Government would not apply in Scotland, but the block grant from UK Government would fall. If the Scottish Government did not replicate the cuts, they would have to find additional money from elsewhere in the Scottish Budget to offset the fall.
What has changed since the pandemic and has it been the same in Scotland as the rest of Great Britain?
As the above charts show, the caseload (the number of people claiming these benefits) has been rising steadily in recent years for both these benefits across GB and is forecast to continue to do so.
The caseload in Scotland has long been higher than in England and Wales due to a higher prevalence of people with disabilities and long-term health conditions.
In recent years, incapacity benefits caseload growth has been slower (49% in Scotland compared to 59% in rGB between May 2019 and August 2024) but due to different levels of population growth caseload per capita (which is the caseload measure shown in the charts) has been slightly higher in Scotland (7% to 11% of working age population compared to 5 % to 8% for rGB).
For disability benefits, the introduction of Adult Disability Payment makes it difficult to compare like-with-like. Although eligibility has remained broadly the same, the application process has been made more accessible and this appears to have led to an increase in people applying following its introduction.
For more detail on this, see this paper from our sister organisation the Scottish Health Equity Research Unit (SHERU). It’s also possible that some people in Scotland delayed making a PIP application to DWP in anticipation of ADP opening for applications.
This may help to explain why, since 2019, the growth in the caseload in Scotland has been only slightly higher than rGB (63% increase in Scotland between May 2019 and Aug 2024 compared to 61% for rGB). In per-capita terms, due to lower population growth in Scotland, the growth has been a bit more significant (increase from 8% of the working age population to 14% in Scotland between May 2019 and Aug 2024, compared to 6% to 9% for rGB).
Do we know why rates have increased?
There are many theories as to why rates have increased but, for a number of reasons, it has been difficult to fully evidence exactly what is going on.
We know from IFS research that rates have increased more in Great Britain than they have in other countries. The IFS also looked at entry and exit rates for disability benefits England and Wales and concluded that around 2/3 of the increase is due to people starting claims and 1/3 is due to fewer people ending their claim.
There are likely to be a number of intersecting factors. We summarise some of these issues below but overall emphasise that we don’t fully know the extent to which these interact.
The working age population is getting older
On average, people’s health deteriorates as they age. With falling birth rates there are currently proportionally fewer younger working age people than older working age people. Coupled with this, pension age changes mean that more older people have become classified as ‘working age’ in recent years. The Resolution Foundation have calculated that an ageing working age population accounts for 1/5 of the rise in caseloads for health-related benefits since the pandemic.
The increases for younger people are concerning but the biggest impact on expenditure would come from tackling ill-health and disability in older age groups
For disability benefits, the growth has been highest in the older working age population, with then broadly comparable rises across other age groups. For incapacity benefits, after the 55-64 age group the second largest rise has come from 25-34 year olds. Growth in the number of young people out of work due to disability and ill health are concerning and needs attention, but if rates are going to come down, focussing on the older generation is key. Whilst we can’t fully attribute the rise to longer waiting times in the NHS, this is likely to be part of the explanation.
Some of the rise may be due to people struggling financially and needing to maximise benefit income
This rise in benefit caseloads has coincided with relatively high rates of inflation and the ‘cost of living crisis’. People struggling financially may have been more likely to make claims during this period compared to previous years when they did not feel they needed the extra income.
There is also some suggestion that people may have switched the type of claim they make for out-of-work benefits to benefit so they can receive a higher level of payment for disability and ill-health related claims. The fact that they are successful in these claims means that people are simply claiming what they are entitled to rather than somehow ‘gaming the system’.
Mental health related claims have grown, but so have claims related to other conditions
The largest absolute rise in claims for disability benefits has been related to mental health conditions, but across Great Britain, there have been rises in a range of physical conditions too (see IFS and SHERU work on this linked above). The extent to which this is due to an increased prevalence of health conditions versus an increased likelihood to claim a health-related benefit is difficult to disentangle.
There has been a rise in the in-work population reporting a disability as well and it may be that people are becoming more comfortable with disclosing mental health conditions. This could mean that people with multiple health conditions are more comfortable with citing mental health as their primary condition in benefit claims now than was previously the case.
We don’t know how much is due to long-covid or longer-term impacts of the pandemic
The extent of available data frustrates efforts to pin down the emergence of new or worsened conditions due to the pandemic and how this has changed people’s financial circumstances (for example, ability to work).
Issues with the official Labour Force Survey have limited the usefulness of the data collected there on reasons for ill health and inactivity (see SHERU blog on this issue here) and qualitative research that is able to produce more in-depth insights usually can’t be scaled up to population level.
As more longitudinal data is made available that tracks people through the period, alongside progress towards more routine data linkage of health records to other administrative data sources such as tax records, we might be able to get a better picture of the intersecting factors that have changed people’s health, benefit and work status in recent years.
What happens next?
The Spring Statement is due on the 26th March. When we know what the proposals are, we’ll be able to unpick what this will mean for people in Scotland and for Scottish Government budgets.
Whilst cuts to welfare spending may help in the short term, longer term solutions are tied up with efforts to improve both living standards and the ability of public services to support people further upstream (for example, through the NHS and employability services) which can reduce their need to recourse to the social security system.
Any decision to make cuts could come with fiscal risks. Cutting benefits for people already experiencing ill health and disability could make their conditions worse and increase demand for public services and/or lead to longer-term reliance on non-health related benefits.
A recent BBC verify article also provides a note of caution: reducing spending on the welfare bill is historically difficult and estimates of savings are often not achieved.
As well as looking at the details of the cuts, we’ll be looking at what the OBR say regarding their effectiveness of cutting UK Government spending with a keen eye.
This National Student Money Week (3 – 7 March 2025), unpaid carers in education are being encouraged to check if they are entitled to financial help from Social Security Scotland.
It is estimated that there are around 35,000 unpaid carers attending college or university in Scotland. The type of help they provide includes emotional, mental or physical support for a family member, friend or neighbour. But many don’t recognise themselves as a carer, which could mean they are missing out on extra money.
There are three payments delivered by Social Security Scotland that could help student carers during their studies:
Carer Support Payment replaces Carer’s Allowance in Scotland. Unlike Carer’s Allowance, it is available to more carers in education.
Louise Reid, Student Support Adviser at the University of the West of Scotland (UWS) and Financial Capability Champion on the National Association of Student Money Advisors (NASMA) Board, explains the importance of this type of help.
“Students, alongside wider society, are consistently pushed to the limit financially from sources outside their control. The cost of housing, energy and food have all been consistently high and this hits student carers particularly hard.
“As caring responsibilities can limit or completely reduce any capacity for part time work to top up existing student funding, additional financial resources are vital.
“Carer Support Payment is an invaluable financial resource that can make the difference between continuing with studies or not. Being able to claim this benefit, whilst studying really makes such a difference to students who provide care.”
To find out more about all Social Security Scotland payments for carers, visit mygov.scot/carers or call free on 0800 182 2222.
Carer Support Payment is a payment of £81.90 a week and is available to carers who are aged 16 or over and who provide unpaid care for 35 hours or more a week to someone who receives a qualifying disability benefit. They need to earn £151 a week or less after tax, National Insurance and expenses. Carers in education who may be eligible includes:
Part time students – those who spend less than 21 hours a week in class or doing coursework for any course
Students aged 20 and over and who study full time for any course
Students aged 16-19, who study full time in advanced education at university or for a college course such as a Higher National Certificate and Higher National Diploma
There are also some circumstances where students aged 16-19 studying over 21 hours a week in non-advanced education, such as studying for National Certificates and Scottish Highers, who may also be eligible if they meet certain criteria. Find out more at If you study – mygov.scot
Carer’s Allowance Supplementis an extra payment for eligible unpaid carers who are getting Carer Support Payment or Carer’s Allowance on the qualifying date. The payment is made twice a year and is unique to Scotland. Each payment of Carer’s Allowance Supplement is currently £288.60. It is paid automatically without the need to apply.
Young Carer Grant is available for carers aged 16, 17 or 18 who provide support for an average of 16 hours a week to someone receiving a qualifying disability benefit. It is a yearly payment of £383.75 and the money can be spent on whatever the young person wants.
Information on other support for carers, such as financial support, wellbeing support and short breaks from caring, can be found at Help if you’re a carer – mygov.scot
If you are an organisation that supports student carers in Scotland, there are shareable resources, many of which are available in different languages, via our resources pages on our website:
The Scottish Government is launching a consultation on its plans to end the two-child cap on benefits.
Eradicating child poverty is the government’s top priority and ministers have committed to ending the limit by April 2026, or sooner if possible. The Child Poverty Action Group estimate that scrapping the two-child cap in Scotland could lift 15,000 children out of poverty.
The consultation is seeking views from the public and stakeholders about the most effective ways to put systems in place to mitigate the effects of the two-child cap. It asks for views on questions such as whether Social Security Scotland should administer top-up payments.
https://twitter.com/i/status/1892967518219751851
Social Justice Secretary Shirley-Anne Somerville said: “The UK Government has failed to scrap the two child cap despite it being a key driver of child poverty. In the face of such inaction the Scottish Government is determined to end the impact in Scotland. If we can safely get the systems up and running earlier than April 2026, then we will make our first payments earlier – helping to lift thousands more children out of poverty.
“We have launched a consultation calling for people to respond as we look to put the necessary systems in place to achieve our goal. We have made clear to the UK Government what is needed for us to end the impact of this policy and I would urge people and organisations across Scotland to contribute to make their views known.
“The draft 2025-26 budget continues to invest more than £3 billion to policies which tackle poverty and the cost of living for households – and I would hope that would command widespread support across Parliament.
“There is irrefutable evidence that the two child limit is increasing poverty and hardship across the UK. We have repeatedly called on the UK Government to end the two-child cap, and we have been just one of many voices saying the same thing. Until they do so, the Scottish Government will do everything in its power to mitigate the policy, which helps create child poverty.”
Pension Age Disability Payment can give people extra money if they have:
a disability or long-term health condition that means they need help looking after themselves or supervision to stay safe
reached State Pension age
It is also available to people of State Pension age with a terminal illness.
Administered by Social Security Scotland, it’s replacing Attendance Allowance in Scotland.
People don’t need to do anything if they already get Attendance Allowance as their awards will gradually transfer to Pension Age Disability Payment, starting early 2025.
People can apply for Pension Age Disability Payment now if they live in Aberdeen City, Argyll & Bute, Highland, Orkney and Shetland.
The payment will be available across all of Scotland by 22 April next year.
Payments are usually made early if they’re due on a bank holiday and it’s useful that those in receipt of benefits are aware of when payments will be made.
Eligible carers will receive a payment of £288.60 today (Friday 6 December).
Carer’s Allowance Supplement is unique to Scotland and recognises the important contribution of unpaid carers in Scotland.
The next payment of £288.60 will be made on Friday 6 December to eligible carers who were getting Carer Support Payment from Social Security Scotland or Carer’s Allowance from the Department for Work and Pensions (DWP) on 7 October 2024.
One mum, and carer, who received the payment, said: “As a carer to two disabled kids it comes in handy, even just to treat myself to some new clothes. Thank you for thinking of the hard-working carers who do a tremendous amount for whomever they care for.”
Carer’s Allowance Supplement is paid into the same bank account as the recipient’s Carer Support Payment or Carer’s Allowance. If someone thinks they are eligible, but does not receive the payment by Monday 16 December, they should get in touch by calling Social Security Scotland free on 0800 182 2222.