Carer Support Payment: business and regulatory impact assessment

Rationale for Government intervention

The assessment of Carer Support Payment regulations in relation to the Business and Regulatory impact was undertaken using the five principles of Better Regulation, as follows:

Proportionate: The Scottish Government will look to identify and minimise any identified indirect impacts. These could include administrative burdens on local government, private businesses or third sector organisations as a result of the introduction of Carer Support Payment and case transfer from Carer’s Allowance.

The existing Carer’s Allowance benefit is currently delivered on behalf of the Scottish Government by the DWP through an agency agreement. The number of people receiving Carer’s Allowance will reduce as Carer Support Payment is delivered by the Scottish Government and carers’ benefits are transferred over to Social Security Scotland. We expect that the impact in the longer term – in terms of the administrative burdens on other public agencies, private businesses and third sector organisations – will be neutral as a result.

As Carer Support Payment will replace Carer’s Allowance and there will be some differences between the two benefits, in the short term, we would expect to see some impacts to carer support services and welfare advice agencies, as carers and others adapt to the new benefit and engage with these organisations with regards to eligibility requirements and the application process. We plan to alleviate these impacts by continuing to work with a range of stakeholder organisations and through our detailed communications and engagement plan for Carer Support Payment to ensure that we provide clear information and support in advance of Carer Support Payment launching, and further clear information on future changes, to reduce these impacts^[12]. A joined-up approach will be taken on communications in relation to Carer Support Payment to develop, agree and oversee the joint communications and engagement strategy, which sets out how we will reach key audiences with the most appropriate messaging and at the right time. The plan will also identify communications needs, risks, and opportunities as far as possible, to ensure the correct course of action is taken in addressing any emerging issues or needs. We also recognise that the complex links that Carer’s Allowance has with support which will remain reserved to the UK Government makes the communications and engagement around the payment even more important and this will be a key consideration in our communications around the launch and roll out of this new support.

Consistent: Carer Support Payment builds on the Social Security (Scotland) Act 2018 framework of a new system that is underpinned by the principles of fairness, dignity and respect. Carer Support Payment will be delivered on an entitlement basis to eligible carers in Scotland. Decision-making will be person-centred and operational and decision-making guidance for case managers within Social Security Scotland will be created in line with the rules within the regulations which will provide a framework for consistent decision making across all applications.

Key elements of the benefit rules for Carer Support Payment have been designed to align with those which apply to the devolved disability benefits, Child and Adult Disability Payment, including residence conditions, suspensions provisions and re-determination processes and timescales. This ensures the overall devolved benefits system is clearer and more consistent and is particularly important as the people who are cared for by the recipients of Carer Support Payment will increasingly be in receipt of the devolved disability benefits.

Accountable: All decisions made relating to an application for Carer Support Payment or case transfer from Carer’s Allowance will be provided to clients in a consistent way. The Social Security Charter sets out, in plain and clear English, what people are entitled to expect from the Scottish social security system, including how they should be treated and how their application will be processed. Complaints regarding Social Security Scotland can be directed to the Scottish Public Services Ombudsman.

We will ensure that clients understand their right to have their decision re-determined by Social Security Scotland and to request an appeal to the First Tier Tribunal (FtT) if they are unsatisfied with the outcome of the re-determination. The timescales in which Social Security Scotland is required to carry out re-determinations are set out in the regulations. Carers will have the right to appeal directly to the FtT if Social Security Scotland is unable to complete the re-determination process within these timescales.

Clients will also be provided with information in pre-application guidance and in notifications on the use of automated decision making in Carer Support Payment and will be signposted to further information which is available in our Privacy Notice, which will cover specific information relating to Carer Support Payment as well as general information about the use of automated decision making.

Transparent: For Carer Support Payment, we will develop a communications strategy which will aim to ensure that clients and their families, the third sector, local government, education and health sectors and advice providers are aware of the benefit, know how to apply and understand the eligibility criteria. Similarly, our communications strategy will ensure that carers, the people they care for, and stakeholder organisations understand the case transfer process. Both carers and the people they care for will receive direct communications notifying them when the transfer of the carer’s benefit has started and what to expect, and the carer will be notified when this process is complete.

Where a decision is made that a client is not entitled to assistance, Social Security Scotland will provide a reason, as set out in the Social Security (Scotland) Act 2018, to ensure that decisions are understood and that our processes are as transparent as possible.

We will also publish guidance on Carer Support Payment in a way that takes account of differing communication needs, so that entitlement is clearly understandable. Social Security Scotland will create a bank of Carer Support Payment and case transfer stakeholder resources and content in accessible formats that will be proactively supplied to relevant stakeholder organisations through the National Stakeholder Engagement team, for organisations to distribute to people in local communities. Easy read versions will be made available and application forms can also be set out in a number of different languages or formats upon request. If applying by phone, Social Security Scotland can also provide an interpreter where English is not the applicants’ first language^[13].

Social Security Scotland will produce communication materials in other languages on request. Social Security Scotland communications will work with community radio and foreign language press to provide messaging on Carer Support Payment to communities. In some circumstances printed marketing materials may not be the right way to engage with communities and where this is the case, we will provide an engagement approach through work carried out by the National Stakeholder Engagement and Local Delivery functions.

Targeted only where needed: Carer Support Payment will provide some replacement income for unpaid carers who are less able to take on paid work. It will not be a payment for the care provided, but will provide recognition for the caring role, by providing support with no requirement to look for work. Like Carer’s Allowance, Carer Support Payment will be non-means tested. This means that a carer’s income (other than from paid work) and their household’s income will not impact whether they can receive the benefit, or how much they will get. Carer Support Payment will, however, only be available to those earning under a set threshold (after certain deductions) which ensures it is targeted at those whose ability to earn income from paid work is affected by their caring responsibilities. Carer Support Payment will also be targeted at carers who are caring for at least 35 hours a week for people who are in receipt of a qualifying disability benefit. This means that it will be focused on unpaid carers with some of the most intensive caring roles, who are more likely to be on lower incomes.

The latest estimates suggest that older working-age women are more likely to provide unpaid care than other age and gender groups. Over a quarter (26%) of females aged 45-54 and 23% of females aged 55-64 have reported providing unpaid care^[14]. Female unpaid carers of working-age also make up most Carer’s Allowance recipients^[15], who may be involuntarily excluded from the labour market through factors such as the current rules on earnings. As a result, unpaid carers of working-age also generally experience a higher poverty rate than both pension-age carers and their non-caring peers^[16].

The Joseph Rowntree Foundation have reported that a key driver of the higher rates of poverty experienced by unpaid carers and those they care for is the current UK labour market, which does not offer the flexibility and accessibility required to allow carers who want to access work to do so^[17]. Findings from the Carers Week report on unpaid carer identification in June 2023 found that over a fifth (23%) of respondents reported that their caring role had affected their job or ability to work^[18]. Many unpaid carers do however choose to work, with around 11% of unpaid carers in receipt of Carer’s Allowance present in the UK workforce^[19]. The Carer Positive scheme^[20], introduced in Scotland in 2014, is a Scottish Government initiative developed with the support of a partnership between private, public, and voluntary sector organisations. The scheme encourages employers to take a more flexible approach and create a supportive working environment for unpaid carers in the workplace.

We have already increased the amount of support provided to carers through our Carer’s Allowance Supplement, so carers getting Carer’s Allowance in Scotland get around 13% more in financial support than carers in England and Wales. Previous evaluations of Carer’s Allowance Supplement^[21] reported that the Supplement had a positive impact overall on businesses, as carers’ have more money to spend, and there is a reduced risk of carers’ being unable to meet ongoing living costs, which is of particular importance in the context of the current cost of living crisis. In a recent Carers Trust report, a quarter of respondents reported feeling financially worse off now than 12 months prior. The report also found that 37% of respondents reported using less energy at home to save costs and 25% reported cutting back on other essentials^[22]. The Supplement was not considered to have any negative impacts on businesses, and we expect this to also be the case for Carer Support Payment.

The Scottish Government also published its second Benefit Take-Up Strategy^[23] in October 2021 under the provision of the Social Security (Scotland) Act 2018. The strategy sets out Scottish Ministers' work supporting benefit take-up to date. It also introduced a series of new activities and initiatives aimed at increasing awareness of and access to Scottish benefits and supporting those who are eligible to apply. These include new funding streams for benefit take-up and income maximisation. Increasing take-up of Carer Support Payment would be expected to have a positive impact on businesses and the economy as it would mean more people are receiving the income from the benefit which they could use to purchase a range of goods and services.

Providing more accessible and stable support for unpaid carers is also intended to help carers to continue in their roles, which, as noted above, have been shown to contribute significantly to the Scottish economy as a whole.

Consultation

Public consultation

The public consultation^[24] on Carer Support Payment (formerly known as ‘Scottish Carer’s Assistance’) was open for 12 weeks, from 28 February until the 23 May 2022. During this time, 9 stakeholder events were held with a range of external stakeholders including the Coalition of Carers, Engender and ALLIANCE, in order to increase awareness of the new benefit, to provide stakeholders the chance to ask officials questions and to comment on the proposals. A total of 192 responses to the consultation were received across a range of individuals (151 responses) and organisations (41 responses). The independent analysis of the responses, conducted independently by Why Research, was subsequently published in November 2022^[25]. The Scottish Government response to the consultation was published in March 2023^[26].

The consultation sought views on a number of proposals, which were split across three main sections:

• Carer Support Payment from launch,
• Extra money for carers in Scotland, and
• Changes to Carer Support Payment.

The consultation also invited views on any impacts of Carer Support Payment on businesses, noting that the Scottish Government have considered the potential business and third sector impacts of introducing Carer Support Payment. Creating a new benefit, widening eligibility, and changing some elements of how the benefit works, is likely to mainly affect carer support services and welfare advice agencies, as carers adapt to the new Social Security Scotland system and eligibility requirements, and consider applying for the new support. The Scottish Government will continue to work with stakeholders from a range of organisations to ensure that information and support is provided in advance of Carer Support Payment launch and future changes in order to reduce these impacts.

From the independent analysis of the consultation responses, 30 respondents provided comments to this question, with a few noting their agreement that the impact on businesses needs to be considered in policy development.

A key view held by a few respondents was the need for all businesses to have a basic understanding about the caring role and the impact this can have on an individual, for example, being limited in the number of hours that can be worked. One organisation noted that businesses need to be flexible and creative in their contractual arrangements, and the need for changes to working practices during the pandemic has shown this is possible. Similarly, a few respondents also noted that the consultation proposals may benefit businesses as carer employees may be able to work longer hours, resulting in benefits for both the business and the carer’s mental health.

The proposals may also help to ease recruitment and retention problems experienced by some businesses. An organisation noted that:

“The increase in the earnings limit for carers and the increase in hours that carers are able to work could benefit employers. There have been workforce shortages with recruitment and retention of staff remaining challenging in the public, third sector and independent sector. While not all carers will be able to work, it will depend on their individual circumstances, but those who can may help ease the workforce challenges across the sectors while improving their financial situation. The pandemic has taught that standard work patterns can change; hybrid working and working from home are attractive options and offer flexible arrangements that may suit some carers. The impact on business in each of the sectors will require them to become flexible and creative in their contractual arrangements with staff.”

A very small number of respondents, mostly organisations, suggested that there would be economic benefits from these proposals. A third sector organisation noted that carers could be more socially and economically active in their communities, and a local authority perceived those increased benefits will mean more spend in local businesses.

The need for advice and support activities was highlighted by a few respondents. One organisation suggested that guidance should be provided to businesses regarding the employment of carers and an individual respondent noted that carer organisations can advise businesses on how to support carers within their workforce. There were also a few references to removing the earnings threshold and/or revising the number of hours a carer can work before their benefits are impacted.

Within Government

Internally, a series of workshops and ongoing engagement have been undertaken in the development of Carer Support Payment, including ahead of the Multicriteria Analysis process which informed the proposals set out in the public consultation, as well as in developing the consultation itself. This has included in particular colleagues in Health and Social Care, Education, Employability, and wider Social Security policy, as well as Social Security Scotland, Social Security Social Research and the Social Security Analysis, Forecasting and Evaluation (SSAFE) unit.

In developing the detail of Carer Support Payment policy and the design and delivery of systems, workshops and regular engagement have been also ongoing with internal stakeholders such as operational colleagues within Social Security Scotland, other policy colleagues, analytical colleagues and colleagues within Programme delivery. In addition to this, policy officials have also regularly engaged with policy counterparts within the DWP and Northern Ireland Department for Communities. Regular updates have also been provided to the Minister and decisions sought at regular points on key areas of policy.

As part of engagement with Programme delivery colleagues, areas of policy have also been regularly user-tested with carers, cared for persons and carer support organisations.

Carer and stakeholder consultation

In addition to the public consultation and engagement events, both surveys and interviews were conducted with Experience Panel members by Social Researchers within the Scottish Government and the findings published in the Social Security Experience Panels Report^[27]. Though many did not comment on the impact on businesses or the third sector specifically, there were a few comments made regarding the importance of widely advertising Carer Support Payment proposals and the eligibility criteria, in recognition of the fact that many unpaid carers are not aware of the support – either financial, respite or otherwise – available to them. Other comments made in relation to this included:

“Let people know it is available. Carers often miss out as they are not aware there is a benefit. I missed out for a long time, until advised by [my] council's welfare reform team.”

(Survey respondent)

“It must be more widely advertised and simpler to understand if you qualify. Many do not go near a carers centre because it is [viewed as being] mostly for older people.”

(Survey respondent)

A small number of respondents suggested that the process to notify a carer’s change of circumstances and change of carers benefits should be simplified. They also noted that clear information and simplified processes regarding these benefit changes, their new rules and their eligibility criteria should be put in place. Comments in support of this included:

“Just a plea to make the transition as seamless and admin free as possible. So many carers have had a tough couple of years and are already inundated with paperwork, appointments and reviews for the person they care for.”

(Survey respondent)

“Please make sure as much as possible that changes in circumstances where a person will continue to be entitled to claim (but perhaps caring for a different person) will not lead to other benefits being ended in the meantime. Currently, this can mean being moved off legacy benefits onto new benefits which might make you worse off or leave you with a big gap and no money.”

(Survey respondent)

Finally, a number of comments were made in support of increasing the rate of Carer Support Payment and also the earnings threshold. These included:

“[Reducing the earnings threshold] would reduce it [inequalities] slightly. But there are still people who will be penalised because they will have to work and they have to earn a certain amount to pay their own living expenses and they will still be penalised and expected to drive themselves into the ground because they don’t get any support and I do think that the fairer way would be to pay everybody, regardless of how many hours per week, because they are caring. And give them a living wage for that caring time. But obviously that would bankrupt the government completely because they have been getting away with treating us like rubbish for the last 40 years; but in an ideal world we should be compensated, however long we spend caring, and we should be compensated at a reasonable wage.”

(Interview participant)

“Make it realistic and fair. Pay carers for the hours they care for by way of a living hourly wage. Carer’s Allowance payment must not be discriminatory and based on capped earnings but base it how many hours the cared for individual is receiving.”

(Survey respondent)

Two surveys regarding the case transfer process were sent out to Experience Panel members in January and February 2019. 404 and 559 responses were received, respectively. A series of individual and group interviews were also conducted. Results from both surveys and the interviews were published in 2019^[28]. These surveys confirmed that of most importance to panel members was that they continue to receive the correct payment at the correct time.

The Scottish Government has also undertaken ongoing consultation with stakeholders through the independent Disability and Carer Benefits Expert Advisory Group (DACBEAG). DACBEAG was chaired by Dr Jim McCormick and comprised individuals with significant practical experience of the United Kingdom social security system, from a range of professional backgrounds. It was independent of the Scottish Government. The Group’s role was to advise Scottish Ministers on specific policy options for disability assistance and carer benefits due to be delivered in Scotland.In addition to this, the views of people with lived experience have been captured through a range of user research with Carer’s Allowance case transfer clients.

Business

A total of 41 organisations responded to the public consultation in 2022. This included a range of campaigning and advocacy services, the third sector and local authorities^[29]. As above, a number of stakeholder events were held with a range of external stakeholders in tandem with the public consultation, including the Coalition of Carers, Engender and ALLIANCE, in order to increase awareness of the new benefit, to provide stakeholders the chance to ask officials questions and to comment on the proposals.

As part of this policy development, we have also engaged every quarter with our Carer Benefits Advisory Group (CBAG) stakeholders, which includes representation from Carers Scotland, Carers Trust, Minority Ethnic Carers of People Project (MECOPP), Social Work Scotland, VOCAL, Connecting Carers, One Parent Families Scotland, Engender, Child Poverty Action Group, the Convention of Scottish Local Authorities (COSLA) and Citizens Advice Scotland.