The Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025: business and regulatory impact assessment

4. Options

Option 1: Take no action

The transfer of powers to Scotland to make provision for and deliver disability benefits is set out in the Scotland Act 2016 and Social Security (Scotland) Act 2018. Therefore, not taking over powers from the Department for Work and Pensions was not considered to be a viable option.

The current agency agreement for the provision of Disability Living Allowance in Scotland is due to end at the end of March 2025. Extending the agency agreement significantly beyond this date is not considered to be a viable option as it is not in line with the agreed programme of devolution of social security between the UK and Scottish Governments.

Option 2: Transfer case management of people in Scotland’s Disability Living Allowance awards, without introducing or moving them onto a new Scottish benefit.

The Scottish Government could have decided to transfer management of clients’ Disability Living Allowance awards without transferring clients onto a new Scottish benefit under the Social Security (Scotland) Act. However, this would have been inconsistent with the Scottish social security principles, as set out in the Social Security (Scotland) 2018 Act.

This approach would fail to utilise the opportunity to improve on the current administration of Disability Living Allowance, in line with the improvements introduced for other forms of Scottish disability assistance. It would also have required client advisers within Social Security Scotland to be trained in the rules and procedures for managing Disability Living Allowance awards, which differ from those for other forms of Scottish disability assistance. It was considered that this would require significant additional resource to develop bespoke training, maintain parallel guidance and notifications on cross-cutting issues, and limit the ability of Social Security Scotland to move staff within the organisation to meet and respond to demand.

Option 3: Transfer all clients awards to Adult Disability Payment.

This would be a significant departure from the Scottish Governments case transfer principles and the commitment made to the 65+ group that they could remain on Disability Living Allowance for as long as they remained eligible.

Given the eligibility criteria for Disability Living Allowance and Adult Disability Payment differ significantly, like-for-like case transfer would not be possible. This would require around 66,000 clients to have their award reviewed as part of a transfer process. This would be stressful for people, and may result in some losing or seeing a reduction in their awards. It would also require significant additional resources within Social Security Scotland to undertake such reviews.

Option 4: Introduce Scottish Adult Disability Living Allowance within the framework of the Social Security (Scotland) Act 2018, to facilitate a like for like transfer (recommended option).

By introducing Scottish Adult Disability Living Allowance as a form of disability assistance under the 2018 Act, it will be possible to:

• provide for like-for-like case transfer in line with the case transfer principles
• keep commitments to the 65+ cohort that they can remain on Disability Living Allowance;
• enable people to benefit from the wider improvements that have been introduced in the development of the Scottish social security system, such as, improved special rules for terminal illness and access to short-term assistance; and
• allow for the most effective use of available resources within Social Security Scotland.

A further key improvement for the Working Age group is that they will have the opportunity to remain on Scottish Adult Disability Living Allowance for as long as they are entitled, with the option to apply for Adult Disability Payment instead if they wish.