Social Security Scotland reports on its first full financial year

£540 million in benefit payments since launch of new system

The Scottish Government has provided people who need it with over £540 million in payments since launch in September 2018 up to 31 March 2020, according to the Social Security Scotland’s annual report published today.

From 1 September 2018 to 31 March 2020, benefits were delivered that support low income families during key stages in a child’s life, people struggling to pay for funerals and unpaid carer

The support paid over the course of the financial year reporting period 1 April 2019 to 31 March 2020 totalled £346.7 million.

A further three benefits have been introduced since March 2020. Job Start Payment, Child Winter Heating Assistance and the Scottish Child Payment which is estimated could pay an extra £142 million to people in Scotland every year.

Social Security Secretary Shirley-Anne Somerville said: “Social security is the most significant new public service to be created in Scotland since devolution.

“Social Security Scotland’s latest annual report shows that our new service is already supporting thousands of low income people including families with young children, carers and those who have lost loved ones.

“It paid out £346.7 million in the last financial year and we expect this to be much higher when we report again next year given the introduction of three more benefits – including the game changing Scottish Child Payment.

“What’s also encouraging is that over 80% of clients who rated their experience of applying for Scotland’s benefits said it was good. Making sure we get money to those who need it is our priority but to truly do things differently we want to make sure that people have a good experience – that they are treated with dignity, fairness and respect.

“Of the ten benefits we currently offer, seven are completely new forms of assistance and the others are more generous than the UK benefits they replace. And despite the impact of Covid-19, we have introduced three new benefits in the last four months and our new Scottish Child Payment that will provide eligible parents and carers with an additional £10 per child per week is open to applications and will be paid from the end of February 2021.

“Over the course of this year, the service has continued to grow and take on new responsibilities. And next year will bring even greater challenges with the introducing of the more complex disability benefits. People can be reassured that we will continue to ensure that our social security system is there for people when they need it, and is something they can be proud of.”

Chief Executive of Social Security Scotland, David Wallace said: “I’m very proud of what we have achieved during the 2019/20 reporting period and since launching our brand new public service. And I’m pleased we have been able to effectively get money to so many people in Scotland who need it.

“There is still a lot more to do as we prepare to start to deliver the more complex disability payments and our service will continue to grow.

“The annual report demonstrates all that we have accomplished. Looking forward, our new Corporate Plan sets out what we will do to deliver on our responsibilities in the future.

“And our Charter Measurement Framework co-designed by people with lived experience of benefits – will help us measure our success.”

Background

  • Payments made during the reporting period of 1 April 2019 to 31 March 2020 include Best Start Grant Pregnancy and Baby Payment, Best Start Grant Early Learning Payment, Best Start Grant School Age Payment, Best Start Foods, Carer’s Allowance Supplement, Young Carer Grant and Funeral Support Payment.
  • Social Security Scotland also reports on Carer’s Allowance payments that are made on its behalf through the Department for Work and Pensions.
  • Over £537 million in benefit expenditure was recorded in the Social Security Scotland annual report (£346.7 million in 2019/20 and £190.9 million in the seven months of 2018/19) with an additional £6.9 million in 2019/20 Best Start Foods payments coming from the Scottish Government’s health budget. Best Start Foods spend is accounted for in the Scottish Government’s annual accounts.
  • As of 23 November 2020, Social Security Scotland now directly administers ten benefits. Benefits introduced in 2020/21 include Job Start Payment (introduced August 2020), Scottish Child Payment (applications accepted from November 2020 with payments to start end February 2021) and Child Winter Heating Assistance (introduced November 2020)
  • Read Social Security Scotland’s latest Annual Report 

New benefit system will offer short term assistance

Payment introduced to protect people when challenging benefit decisions

People challenging disability benefit decisions will be able to claim a new Short Term Assistance payment under Scotland’s new social security system.

Short Term Assistance will mean people continue to receive the amount of money they were getting before the decision was made to lower or stop their payment.

To ensure people are not put off seeking an appeal or re-determination, they will not have to repay Short Term Assistance if the re-determination or appeal upholds the decision to lower or stop their social security payment.

This is a first for benefit delivery in the UK and it will be introduced alongside Child Disability Payment, the Scottish Government’s replacement for Disability Living Allowance for Children.

Social Security Secretary Shirley-Anne Somerville said: “People’s lives are complex and making benefit decisions, which take into consideration a whole range of unique circumstances, is difficult.

“Social Security Scotland will gather as much information as we can, working with the applicant, the wider public sector and health and social care professionals to make the right decision first time. However, we know that we won’t always get it right and where we don’t, we want people to feel able to challenge us to look again.

“This is why we are introducing Short Term Assistance. We know that it can be difficult for people who rely on disability assistance when their payment has been reduced or stopped. The decision to ask for a re-determination or appeal can be daunting. This new payment will give people the confidence to ask us to look again and to go to appeal if they feel they need to, ensuring they get everything they may be entitled while working through this process.

“We hope to drastically reduce the need for people to go through the re-determination and appeal process under our new system by getting the decisions right first time. Where we don’t get it right though, we will give people who rely on this service the opportunity to right this wrong, without being penalised.”

Further detail about how the redetermination and appeal process will work is contained in a series of papers that outline the future of disability benefits in Scotland.

These detail what people should expect from application right through to appeals. 

Child Winter Heating Assistance payments to start

Extra money for more than 14,000 disabled children

Families of disabled children will receive a new heating benefit  by Christmas.

The Child Winter Heating Assistance is a new £200 payment to help families of a child on the highest rate care component of Disability Living Allowance for Children to heat their homes. There are more than 14,000 children expected to be eligible.

Payments will arrive with people from Friday 27 November and these are expected to be complete by Friday 11 December.

People do not need to apply for this payment. It will be made automatically by Social Security Scotland using information provided by the Department for Work and Pensions. Families will get a letter in advance to confirm that they will be getting this payment.

This is the first form of disability assistance to be introduced by the Scottish Government using its new social security powers.

Cabinet Secretary for Social Security and Older People, Shirley Anne Somerville said: “As the nights draw in and the temperature starts to drop we will all be conscious of  the extra cost to heat our homes. For families of the most seriously disabled children and young people, who may need to heat their homes for longer periods, this can bring even more pressure in what is already a challenging circumstance.

“I am so pleased that we have been able to introduce this payment before Christmas, ensuring people will have this money ahead of the coldest of the winter months. I hope this helps these families plan their finances and that they can turn the heating on without as much worry about how they are going to afford it.

“I am delighted that despite the impact of COVID-19, we’ve been able to move forward with three new benefits this year – Job Start Payment, Scottish Child Payment and now Child Winter Heating Assistance. This is the first disability assistance that we will deliver using our new social security powers.

“We are continuing to work with delivery partners to review the timeline for introduction of our remaining benefits and we will do everything we can to start these as soon as we can practically and safely do so.”

Background

  • a client will qualify for Child Winter Heating Assistance if they live in Scotland and were in receipt of the highest rate care component of Disability Living Allowance for children on at least one day between 21 September 2020 to 27 September 2020.
  • families will get letters in advance to confirm to expect this payment. Payments will be made in batches from Monday 23 November and arrive in people’s banks approximately four days later. It is expected to take two weeks to complete all payments. This payment will be made to the same account that they receive Disability Assistance Living Allowance for Children payments to.
  • families will get a payment for every child who receives the highest rate Disability Living Allowance for children. This is not a per household payment.
  • if a family believes that they are eligible for this payment and they haven’t had a letter or a payment, they should contact Social Security Scotland from Tuesday 8 December for further advice.
  • people can contact Social Security Scotland through web chat at mygov.scot/contact-social-security-scotland/ by calling the Freephone helpline on 0800 182 2222.
  • while the pandemic continues to have an impact on our operations and our delivery partners – including health and social care and the Department for Work and Pensions – we are doing what we can to progress policy, design and development work. We are still working through what the impacts of COVID-19 mean for our delivery timeline and holding conversations with partners to establish what we can introduce and when.

One step closer to tackling poverty

New legislation to improve the benefits system to help those who need it most has been unanimously passed by the Scottish Parliament.

The Social Security Administration and Tribunal Membership (Scotland) Bill supports the delivery of the new Scottish Child Payment, to provide low-income families with an additional £10 per week, initially for each child aged under six.

The Payment, together with Best Start Grant and Best Start Foods, will provide over £5,200 of financial support for families by the time their first child turns six. For second and subsequent children this will provide over £4,900.

Cabinet Secretary for Social Security and Older People Shirley-Anne Somerville said: “When I brought this Bill forward, the driving force was to have the Scottish Child Payment in place as soon as possible to make an impact on child poverty.

“I am pleased and proud that, in the teeth of a global pandemic, the Scottish Child Payment will open for applications in November with first payments to start from February 2021. Vitally the bill passed today ensures that the Payment will be up-rated every year in line with inflation, from April 2022 onwards.

“This Bill also ensures that there is a duty to inform people of their potential eligibility for benefits such as our Child Payment. Promoting the take-up of Scotland’s social security benefits is a major part of our strategy to make sure people access the financial assistance they are entitled to.”

The Social Security Administration and Tribunal Membership (Scotland) Bill makes a number of improvements to the social security system, and expands the range of judges allowed to sit on Scottish Tribunals.

It allows Ministers to appoint a person to receive benefit payments on someone else’s behalf if the claimant is a child or – in the case of an adult – if the claimant agrees to the appointment.

The Bill also allows appropriately qualified medical professionals other than just doctors to confirm that a person is terminally ill for the purpose of ‘fast tracking’ their benefit claim. The first benefit to which this will apply is the Child Disability Payment.

The Bill applies the rules for dealing with fraud consistently across different kinds of social security.

The Scottish Fiscal Commission estimates that the Scottish Child Payment could support up to 194,000 children this year. This number has increased by 14 per cent since the Scottish Government released forecasts in June 2019, largely due to the increased Universal Credit caseload as a result of COVID-19.

Initially introduced for children under six, the Payment will be rolled out to under 16 year olds, eventually helping up to 499,000 eligible children.

Families to be alerted to additional financial support

A first for social security in Scotland

The Scottish Government is to actively inform families that they may be eligible for Best Start Foods and the Best Start Grant.

Information obtained from DWP and HMRC will allow Social Security Scotland to identify people who are on certain benefits or tax credits and have children of the right age. Social Security Scotland will then write to an estimated 22,000 families before the end of August inviting them to apply.

The letters are aimed at increasing take up of all financial support families are entitled to as part of the Scottish Government’s benefit take-up strategy and the wider co-ordinated approach to helping families who are under even more financial pressure due to the coronavirus (COVID-19) pandemic.

This important new proactive approach to maximising benefit uptake is a first for social security in Scotland.

Families already receiving qualifying UK benefits and tax credits will receive these invites. Those who currently don’t receive such support but think that they may be eligible are still encouraged to find out if they too are entitled to access Scottish benefits.

Social Security Secretary Shirley-Anne Somerville said: “Social security is a human right and an investment in the people of Scotland. Encouraging individuals to claim the financial assistance they are entitled to is a duty of government and a social responsibility. We are committed to making sure that people get all of the money that they are entitled to – to help maximise incomes and tackle poverty.

“The economic impacts of the pandemic are pushing thousands of people further into hardship so it’s important families are informed about the support available to them.

“This unique direct marketing of benefits complements the Scottish Government’s wider efforts to help parents during this challenging time. We must do all that we can to eradicate child poverty and make Scotland the best place in the world to grow up.”

More ways to apply for new benefit

Applications for the new Child Disability Payment will be available online, face-to-face and by telephone – for the first time ever.

The Scottish Government is introducing the new benefit this summer, replacing the UK Government’s Child Disability Living Allowance.

By offering a variety of ways for people to apply, the Scottish Government wants to make it as easy as possible for those applying when this first disability benefit opens to new claimants. Paper-based applications are the only possible method under the current UK Government system.

Other improvements include:

  • local delivery staff across the country to provide pre-application support
  • rolling awards with a maximum review period of ten years when the condition of applicants is unlikely to change
  • the option of financial short-term assistance if a person challenges a decision to reduce or stop their disability payment
  • Child Winter Heating Assistance will provide a £200 payment to families with disabled children who receive the highest rate of payment

Social Security Secretary Shirley-Anne Somerville said: “We want to remove barriers to accessing the financial support people are eligible for and end the stress and anxiety felt by those using the current UK Government system.

“Offering different, convenient ways to apply, as well as consistent, considerate and sensitive support through the application process, will transform the experience for parents, guardians and carers applying for their loved ones.

“These are the improvements people have told us matter to them. By listening to those with experience of the social security system we can create a system from the ground up that meets the needs of the people of Scotland.

“It is a system that recognises that social security is a human right and will treat people with fairness, dignity and respect.”

Scotland in crisis

The amount given in crisis grants to those most in need has increased by more than a third, latest figures show. The Scottish Welfare Fund paid out a total of £3.2 million in crisis grants between July and September 2019 – 34% more than the same period the previous year.

The Scottish Welfare Fund is distributed by local authorities and provides Crisis Grants and Community Care Grants.

Crisis Grants help families on low incomes with unexpected expenses arising out of an emergency or a disaster. Community Care Grants help those on low incomes live independently in the community or to help people maintain their home in the face of exceptional pressure.

The most common reason families said they applied for emergency funding was because their benefits or other income had been spent – up 33% on the previous year.

Estimates suggest the UK Government’s social security spending in Scotland is set to reduce by £3.7 billion per year by 2021. In addition, the benefit freeze and benefit cap are now in their fourth year.

Social Security Secretary Shirley-Anne Somerville said: “This is the latest evidence that the UK Government’s swingeing benefit cuts are hitting the poorest in Scotland hardest.

“The large increase in people applying for emergency funding shows how much those on low incomes are struggling just to make ends meet.

“The Scottish Government will not stand by and let people who are already in need continue to face a reliance on food banks and the stress of debt and rent arrears.

“That’s why we are continuing to spend over £100 million each year to mitigate the worst effects of the UK Government welfare cuts – part of the £1.4 billion we spent last year to support low income households.

“This is money we should be able to invest elsewhere to help pull people out of poverty but we instead we need to use it to protect the most vulnerable in our communities.

“We are introducing the Scottish Child Payment to tackle child poverty head on which will start for eligible families with a child under six by Christmas. But there is no doubt that without the cuts inflicted on families by the UK Government this could go so much further.”

Carers to receive extra cash by Christmas

The majority of carers will receive their next payment of Carer’s Allowance Supplement on Friday 13 December.  

This supplement, paid twice a year by Social Security Scotland, to carers in receipt of Carer’s Allowance in Scotland is in its second year.  Payments have already been made to over 91,000 carers throughout Scotland.

The Carer’s Allowance Supplement is two automatic payments totalling £452.40 this year. It was introduced by the Scottish Government because Carers Allowance was the lowest paid benefit by the UK Government. The additional payment means it is now above the level of Jobseekers Allowance. Continue reading Carers to receive extra cash by Christmas

Scottish Welfare Fund has helped more than 347,000 ‘struggling’ Scottish households

poverty family JRF

Nearly £210 million has been paid to 347,045 low income households by the Scottish Welfare Fund since it was established in 2013, latest figures show.

Crisis grant applications to the fund for basic essentials such as food and heating increased by 12% from April to June compared to the same period last year.

In addition, for the first time exceptional pressure is the main reason for Community Care Grant applications. Previously, the biggest reason for these applications was helping people to stay in their community.

The fund, which enables local authorities to provide grants for people on low incomes, is part of the Scottish Government’s mitigation efforts for UK Government welfare cuts. Estimates suggest social security spending in Scotland is set to reduce by £3.7 billion per year by 2021.

Social Security Secretary Shirley-Anne Somerville said: “These are yet more signals of how much families are struggling.

“In the face of UK Government cuts and with the threat of a ‘no deal’ Brexit still alive – the risk is real that tens of thousands more people could be pushed into poverty in Scotland.

“The Scottish Government will not stand by and let people who are already struggling continue to face a reliance on food banks and the stress of debt and rent arrears.

“We will continue to spend at least £100 million each year to mitigate the worst effects of the UK government welfare cuts – part of the £1.4 billion we spent last year to support low income households.

“This is money we should be able to invest elsewhere to help pull people out of poverty but we instead we need to use to protect the poorest and most vulnerable in our country.

“And we are introducing the Scottish Child Payment to tackle child poverty head on. But there is no doubt that without the cuts inflicted on families by the UK Government this could go so much further.”

 

Person-centred reform to disability payments “will reduce anxiety and stress”

A sea change in social security policy to reduce the anxiety and stress associated with the current UK Government disability payments process has been given strong public support.

A consultation found that Scottish Government proposals for a person-centred approach was favoured over the current ‘one-size-fits-all’ system of the UK Government.

The new Scottish social security system has fairness, dignity and respect designed in from the start. Measures will include:

  • face-to-face pre-application support delivered across the country
  • a multi-channel approach for submitting applications, including telephone, paper-based and face-to-face
  • clear eligibility criteria
  • simplified application form
  • enhanced role for carers in provision of evidence
  • greater choice and control over the timing and locations of assessment, with home-based assessments provided where required
  • profit making companies will not be involved in carrying out assessments for disability payments

This contrasts with the UK Government system which users have criticised for having complicated and inaccessible application routes, unnecessary face-to-face assessments and inaccurate reports.

Social Security Secretary Shirley-Anne Somerville said: “I have heard from far too many ill and disabled people who currently know only of stigma, stress and anxiety when it comes to accessing welfare support and fear the ‘dreaded brown envelope’ from the Department for Work and Pensions. 

“That is why I want a sea change in accessing disability payments. A new system designed from the ground up – together with users themselves – that puts people first.

“We are supporting people to access the financial support they are entitled to and actively seeking to move away from the stigma of benefits to recognise they are an investment in our people.

“That means a process that is clear and accessible from start to finish and ensures people understand how and when their application will be dealt with.

“It is part of our promise to the people of Scotland that our social security system is a public service and will treat everybody with fairness, dignity and respect.”

Disability Assistance in Scotland

Disability Assistance Consultation responses