Draft Disability Assistance for Older People (Scotland) Regulations 2024: Draft Business and Regulatory Impact Assessment

Summary and Recommendations

In summary, the Scottish Government has identified evidence that the introduction of Pension Age Disability Payment will constitute an investment into the Scottish economy. It is anticipated that these funds will be used to pay for care, goods and services. Therefore businesses could benefit from the introduction of Pension Age Disability Payment.

Any impact to businesses as a result of these regulations should be positive or neutral in the long term. The Scottish Government has worked closely with stakeholders to develop the policy and will continue to do so when Pension Age Disability Payment opens for new applications, during the case transfer process and beyond.

Option

1

Total benefit per annum: - economic, environmental, social

No benefits have been identified from this option.

Total cost per annum: - economic, environmental, social - policy and administrative

This option could have a negative economic and social impact.

If the Department for Work and Pensions were to stop providing Attendance Allowance to people in Scotland, and the Scottish Government had not made provision for a replacement benefit, a significant number of people with an entitlement to Attendance Allowance would be worse off as they would no longer be receiving financial support.

The Scottish Government would likely have to act in an unplanned manner to ensure disabled people over State Pension age continue to receive financial support.

This could also have a significant impact on third sector organisations, such as advice and advocacy services and other areas of the public sector, such as local government.

Option

2

Total benefit per annum: - economic, environmental, social

Although in the short term this option would have a neutral impact, the Scottish Government would have delivered a benefit that does not align with our social security principles. This would still have a significant budgetary impact, and deliver a benefit that has not been designed with people that have experience of the current system, therefore lacking in the improvements that the Scottish Government has delivered for Child Disability Payment and Adult Disability Payment.

Total cost per annum: - economic, environmental, social - policy and administrative

The cost of this option is likely to be similar to that of Option 3, as the Scottish Government would still need to budget for the delivery of new systems and a case transfer process as well as training staff.

Option

3

Total benefit per annum: - economic, environmental, social

There will be a significant social benefit through this option, as individuals will be able to benefit from a number of improvements from Pension Age Disability Payment, ranging from a choice of inclusive application channels, local delivery support, improved Special Rules for Terminal Illness provision and access to Short-term Assistance.

Total cost per annum: - economic, environmental, social - policy and administrative

For 2024-25, the Scottish Fiscal Commission have forecasted expenditure on Pension Age Disability to be £715.5 million; and the Scottish Government is expected to receive £714.5 million from the Block Grant Adjustment for Attendance Allowance.

The Scottish Fiscal Commission have forecasted expenditure on Pension Age Disability Payment to increase over future years to £816.5 million in 2027-28. In the same financial year, the Scottish Government is expected to receive £744.5 million from the Block Grant Adjustment for Attendance Allowance.

The Scottish Fiscal Commission have set out the reason for this increase in expenditure over the Attendance Allowance Block Grant Adjustment is due to the changes the Scottish Government are making as part of Pension Age Disability Payment, such as the introduction of the Scottish definition of terminal illness and provision of Short-term Assistance.