Severe Disablement Allowance: agency agreement

3. Duration

3.1 The initial agreement which sets out the agency arrangements (“the Initial Agreement”) commenced on 1^st April 2020 immediately upon transfer of executive competence for Severe Disablement Allowance to the Scottish Ministers, in accordance with the Scotland Act 2016 (Transitional) Regulations 2017 – S.I. 2017/444. The Initial Agreement had a term of five (5) years ending on 31^st March 2025.

3.2 This Agreement replaces the Initial Agreement and shall be effective from 1^st April 2024 (“the Commencement Date”) and unless terminated earlier in accordance with its terms, will remain effective up to and including 31^st March 2026 (“the Term”).

3.3 This Agreement may be varied by mutual written agreement of both parties at any time during the Term or any extension to the Term. Both parties will review this Agreement twelve (12) months after the Commencement Date and set out any changes in a revised Agreement but any extension will be in accordance with the terms below.

3.4 Should the Scottish Ministers require DWP to continue to carry out functions in relation to Severe Disablement Allowance beyond the Term, the Term may be extended by agreement between the parties. The parties may agree an unlimited number of extensions, with the duration of each extension to be agreed between the parties, until there are no further cases in Scotland where Severe Disablement Allowance is being paid.

3.5 Where any extension is required, both parties will review the Agreement and set out in a revised Agreement the arrangements for an extension. This revised Agreement will be completed at least twelve (12) months in advance of either the end of the Term or the end of any previous extension agreed under paragraph 3.3.

3.6 No less than twelve (12) months before the end of the Term or any extension under paragraph 3.3, DWP and the Scottish Ministers will, unless an extension (or further extension) to the Term has been agreed in accordance with paragraph 3.3, have agreed an exit plan for the orderly transition of the delivery of Severe Disablement Allowance to the Scottish Ministers or, in practice, Social Security Scotland, which will deliver the services for the Scottish Ministers. DWP and Social Security Scotland will maintain and update the exit plan throughout the Term or any extension to the Term.

3.7 If either party wishes to terminate this Agreement before the end of the Term, or any extension under paragraph 3.3, a period of twelve (12) months’ written notice will be given to the other party.