Employment Injury Assistance delivery - next steps: response to consultation

Ministerial Foreword

I am grateful for the responses to our consultation on the immediate next steps for Employment Injury Assistance, our replacement for the UK Government’s Industrial Injuries Scheme. This consultation was a crucial first step in addressing the unique complexities and challenges associated with the Scheme, which has undergone little reform since it was first introduced in 1948.

I appreciate the input of organisations and individuals who have taken the time to engage with this consultation. I would also like to thank those who participated in online roundtable events and provided valuable feedback. The responses underline just how important Industrial Injuries Scheme payments are to the 24,000 people in Scotland who receive them.

The largest number of consultation responses support the Scottish Government’s proposal to prioritise longer term reform of Employment Injury Assistance. The Government shares the ambition of consultees that Employment Injury Assistance should better reflect the modern economy and workforce, including for example, addressing the under-representation of women. There are significant barriers to fundamental reform, with powers on health and safety, and employment law continuing to be reserved to Westminster, but we are determined that Employment Injury Assistance should better meet Scotland’s needs.

I also acknowledge that some respondents would like to see delivery of a reformed benefit more quickly. However, replacing a set of benefits introduced in 1948, that are largely paper-based with information about people’s awards held in paper files going back many years, will take time. Overcoming these challenges will also require working very closely with the UK Government. This is particularly important as UK policy changes, such as the restriction of Winter Fuel Payments in England and Wales, have a direct impact on the funding for our replacement benefits. Any changes to the Industrial Injuries Scheme would therefore impact the Block Grant Adjustment associated with Employment Injury Assistance, further restricting our ability to deliver a reformed benefit.

We must also be realistic about the fiscal challenges facing the Scottish Government when considering any potential future changes. The financial situation facing the Scottish Government is by far the most challenging since devolution and this requires difficult decisions to be made about how to prioritise spending across all our public services. It will therefore not be possible to deliver a reformed benefit in the current Parliament and it is clear from this consultation that a like-for-like replacement of the UK Scheme is not desirable, nor does it offer value for money. Doing so would mean devoting considerable resources that could better be used elsewhere to replicate an out of date and not fit for purpose benefit.

Some consultees rightly focussed on the importance of protecting the interests of and payments to clients. This has and will always be our top priority. That is why I am committed to taking the time necessary to develop options for a modernised benefit that reflects occupational health in Scotland and ensures current awards are protected.

This is the first step in what will be a wider consultation process. In the coming weeks we will discuss arrangements for continued delivery of the Scheme in Scotland with the Department of Work and Pensions and establish an Employment Injury Assistance Steering Group to take forward considerations raised in the consultation. In due course we will consult further on detailed options for reform.

I look forward to continuing this engagement in the weeks and months ahead.

Shirley-Anne Somerville

Cabinet Secretary for Social Justice