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

5. Sectors and Groups Affected, Benefits and Costs

The impact of Scottish Adult Disability Living Allowance and the case transfer process is going to be dispersed across the country and sectors of the economy. The Scottish Fiscal Commission’s forecast for Scottish Adult Disability Living Allowance published in December 2023 estimated expenditure of £384 million in 2025-26 reducing to £272 million in 2028-29.

As noted previously, there may be some potential impacts on welfare advice and support services, however we plan to mitigate this through our ongoing engagement with carer stakeholder organisations, and by providing stakeholders with clear information and communications around any changes to support.

We are also committed to increasing the awareness and take-up of benefits and other sources of financial and practical help. We have allocated around £12.5 million to support provision of welfare, debt and income maximisation advice services for 2023-24.

Welfare Advice and Health Partnerships (WAHP) are an important example of such Scottish Government initiatives – placing welfare rights advisors in up to 180 GP surgeries in Scotland’s most deprived areas, as well as in remote and rural locations. WAHP practices can refer patients directly to an in-house welfare rights officer for advice on increasing income, social security eligibility, debt resolution, housing, and employability issues as well as helping with representation at tribunals.

This vital support reaches people who have not engaged with traditional advice services, and ensures that Scottish households are supported to claim the benefits they are entitled to, challenge benefit decisions, maximise their incomes, resolve issues relating to employment, housing and much more.

An information sharing process will also be in place between the Scottish Government and external stakeholders – including the Department for Work and Pensions (DWP) the Ministry of Defence (MoD), His Majesty’s Revenue and Customs (HMRC) and Local Authorities – to ensure all communications between departments is as seamless as possible and to support with the overall transition from Disability Living Allowance to Scottish Adult Disability Living Allowance in Scotland.

Department for Work and Pensions

The Scottish Government and the DWP will share data with each other to support delivery of Scottish Adult Disability Living Allowance. This data sharing arrangement is required to assess eligibility for support, ensure accurate determination on cases are made and to ensure that clients’ receipt of Scottish Adult Disability Living Allowance affects awards of benefits administered by DWP in the right way.

Ministry of Defence

The Scottish Government and the MoD will share data with each other to support delivery of qualifying benefits. This data sharing arrangement is required to assess eligibility for support, and prevent double payment where clients are entitled to both Scottish Adult Disability Living Allowance and any ‘overlapping benefits’ administered on behalf of the MoD.

HMRC

The Scottish Government will share award data with HMRC for HMRC to ensure that people can be treated appropriately in relation to eligibility for HMRC support such as Tax Credits and Tax-Free Childcare.

Local Authorities

The Scottish Government will share award data with Local Authorities to ensure the client receives appropriate support from the local authority areas in which they reside. This includes council tax reduction and changes to housing benefits.