Social Security in an independent Scotland

Independence would give Scotland the opportunity to take a new approach to social security designed to be fairer, more dignified and more respectful according to a new paper published by Cabinet Secretary for Social Justice, Shirley-Anne Somerville.

The ninth paper in the Building a New Scotland series – Social Security in an independent Scotland – sets out how the UK Government holds the majority of social security powers including low income and working age benefits. 

It evidences negative impacts of the UK Government’s current welfare policies on poverty levels, outlines the progress the Scottish Government has already made in creating a fairer system with limited powers, and demonstrates how an independent Scotland could go even further.

These include:

• supporting and protecting everyone who needs financial help and support at any point in their lives
• introducing early reforms to Universal Credit - removing the bedroom tax, benefit cap, two child limit, ‘rape clause’ and young parent penalty which have all been introduced by the UK Government
• working alongside wider labour market, health and social policies to create a stronger and more dynamic economy like comparable European countries
• stopping the rollout of changes to the delivery of reserved ill-health and disability benefits introduced as a result of the UK Government’s Health and Disability White Paper
• moving towards a new system grounded in adequacy, such as a Minimum Income Guarantee, to ensure that everyone could have a decent level of income and live with dignity

Ms Somerville said:

“With independence, we believe Scotland can do better. With limited powers, the Scottish Government has already demonstrated that things can be done differently with an approach to social security that treats people with dignity, fairness and respect.

“An estimated 90,000 fewer children are expected to live in relative and absolute poverty this year as a result of actions we have taken.

“With the powers of an independent nation, Scotland could do more to make our system fairer and move away from the UK Government’s system of benefit freezes, caps and punishment.  We could move away from the UK Government’s system that offers inadequate levels of financial support and is pushing people into poverty.

“The best-performing independent countries comparable to Scotland demonstrate that a strong social safety net is a foundation of a dynamic, innovative and productive economy, rather than a barrier to it.

“We can become a stronger, fairer and more prosperous country – this government believes that independence is the best route to getting there.”

Background

The Scottish Government is delivering 14 benefits, seven of which are only available in Scotland, including the Scottish Child Payment, that tackle poverty and reduce inequality.

As a result of Scottish Government policies, an estimated 90,000 fewer children are expected to live in poverty this year, with poverty levels nine percentage points lower than they would have otherwise been.

This includes Scottish Government estimates that the extended and increased Scottish Child Payment could lift 50,000 children out of relative poverty in 2023/24, reducing child poverty levels by five percentage points, according to the most recent modelling published in June 2023.

Social Security in an independent Scotland