Consumer Duty Compliance Statement: Programme for Government 2024 - 2025

Stage 2 – Evidence Gathering:

3. What is the proposal trying to achieve?

As above, the proposal presents a suite of actions that, when taken collectively will address the four priorities of government.

In terms of gathering evidence, internal processes ensured engagement across the different areas of government. Each area was provided with information on the consumer duty and two commissions were released to gather evidence. The second commission contained specific questions surrounding the cumulative impact on consumers, whether the Consumer Duty had been held in due regard during the policy development process and any specific instances of potential harm to consumers.

The information received from this commission forms the basis of the analysis of impact set out below.

4. What are the impacts on consumers?

It is anticipated that the PfG will result in a positive impact for consumers. Specifically in relation to how the public engage with essential services; how consumer data is used; consumer protections in place; the availability of information available to consumers; and making it easier for consumers to seek advice or raise complaints. Commitments to better align services, including for vulnerable families, may have implications for how consumers interact with public services and officials will continue to assess how this will impact consumers as the policy is further developed.

The following two examples, among others, in the PfG contributed to the wider analysis of the potential impacts of the PfG on consumers. These show how consumers have been considered in the development of policy and have been considered in the overall assessment of the potential impacts.

Within Justice, the Police (Ethics, Conduct and Scrutiny) (Scotland) Bill was accompanied by a range of impact assessments at introduction to the Scottish Parliament in June 2023. The legislation will embed good practice and underline the importance of maintaining the high standards expected of Scotland’s police officers. The Bill has a positive impact on users of public services, as it will bring greater transparency, fairness and accessibility to systems, policies and processes that underpin the police complaints and misconduct process.

Human Rights Implementation and Legislation - The proposals are targeted towards improving public services by embedding a human rights culture, so would deliver a positive impact for consumers. This could help to reduce harm and is not expected to cause harm - this will be explored further as the proposals are developed.

Within the PfG, regard has been shown for the impact on vulnerable consumers. The PfG addresses economic challenges and supporting the transition to net-zero, while also tackling child poverty. With the ongoing cost-of-living crisis, policies are focused on alleviating financial pressures on low-income households and those with disabilities by improving affordability in key areas such as energy, housing, and transport, and ensuring fair access to emerging technologies like electric vehicles.

The eradication of child poverty is the key priority within the PfG, with expanded financial support through the Scottish Child Payment, affordable housing initiatives, and additional support for families. The PfG also sets out improvement in employment opportunities for parents, lifting families out of poverty in the long term.

By targeting support to vulnerable groups, these measures seek to prevent children and families from experiencing the lasting disadvantages of poverty, ensuring their basic needs are met and improving their future prospects.

5. Is it likely that harm will be experienced by consumers as a result of this proposal?

It is unlikely that there will be any increase in harm to consumers as a result of the overall package of commitments in PfG. Where there is a risk that harm may result (as defined in the Consumer Scotland guidance on page 29) consideration will be given to alternative options that reduce that harm at a strategic level. .

When deciding on the overall package of commitments for PfG, some pre-existing harms that could impact the delivery of PfG were identified. The below examples all highlight measures taken within the PfG to directly reduce these harms.

Advocating re-joining the EU programmes – The impact on consumers is the increased opportunity, particularly for young people, those in education, and those in the creative sector, to benefit from cross-EU study, training, and funding of projects, reduces ‘harm.’

Veterinary Agreement - The result of a Veterinary Agreement will be to reduce the trade frictions and costs for import from and export to the EU – the result for consumers is intended to be a lowering of the price of food and drink, thus reducing ‘harm.’

Equally Safe Delivery Plan - The EQIA confirms the intention of the Equally Safe agenda - to eradicate violence against women and girls through prevention and actions. It aims to work collaboratively with key partners in the public, private and third sectors to prevent and eradicate all forms of violence against women and girls. The delivery plan meets the requirements of the consumer duty, to reduce harm. Public bodies engaged in this work will be required to capture how this is being achieved under their own obligations under the consumer duty.

6. What alternative proposals are there that can improve outcomes for consumers and/or reduce harm to consumers?

The PfG represents a suite of actions that the Scottish Government intends to take over the upcoming year to meet the four priorities determined by the First Minister. It is considered by the Scottish Ministers to be the best use of limited resources in order to further those priorities. Alternative proposals might improve outcomes for one set of consumers, but at a cost of harm to another set. It is not therefore considered that any alternative proposals could improve outcomes for consumers and/or reduce harm to consumers overall.

7. How do these alternative proposals compare to the original proposal?

N/A