Funeral Expense Assistance (Scotland) Amendment Regulations 2024: Fairer Scotland duty assessment summary

Summary of evidence

Policy Context

Funeral Support Payment is delivered by Social Security Scotland. Social Security has been identified as one of the most effective and immediate ways to boost incomes. FSP provides a one-off payment to bereaved people at a time when they need it most. FSP is intended to help alleviate the burden of debt clients may face when paying for a funeral and help to reduce funeral poverty.

Data sources such as Social Security Scotland client diversity and equalities analysis^[10] and A Fairer Scotland for Women: Gender Pay Gap Action Plan^[11], and Poverty and Income Inequality in Scotland 2019-22^[12] analysis have helped identify groups who are more likely to need social security support:

• Those who live in areas with higher deprivation per the Scottish Index of Multiple Deprivation (SIMD)
• Women
• Those from non-white minority ethnic groups
• Households with a disabled person

This Fairer Scotland Duty assessment has considered the impacts that these amendment regulations will have on the groups listed above. It should also be noted that those listed in the groups above would not be exclusively impacted by changes to FSP regulations and that socioeconomic inequalities can also apply to people who are not in any of the groups listed above.

Stakeholder Engagement

There has been policy engagement with stakeholders throughout the development of FSP and since launch.

The Funeral Poverty and Funeral Support Payment reference group^[13] was established in 2016 to help to bring a variety of informed perspectives and provide feedback on proposals for FSP. Membership includes funeral directors, local government, third sector and funeral industry experts. We have had a number of meetings with the group and in November 2023 we provided an overview of our proposed changes. Further to this we have met separately with some of the individual members.

The overall feedback from the reference group was positive and members were broadly supportive of the changes. There was an acknowledgement that the application of a reasonability test could improve equity of access to FSP. There was also an acknowledgement that the proposed change would have a positive impact for island communities as crematoriums tend to be on the mainland and this proposed change gives greater choice for island communities.

The proposal to extend provision to allow for a FSP award to be made when a funeral is held outwith the UK in exceptional circumstances is deemed to have positive impacts from an equalities perspective. It was noted during an additional stakeholder engagement session that repatriation of a body can be expensive, and a family may want to have a cremation abroad before bringing the ashes back home.

No negative impacts were identified when we engaged with stakeholders in relation to the proposal to ensure that EU/EEA/Swiss citizens, including Irish citizens, who have obtained leave to remain in the UK by means other than the EU settlement scheme and would have been entitled to support for funerals abroad (EU member states, Iceland, Liechtenstein, Norway or Switzerland) prior to 31 December 2020 continue to be entitled to an award of FSP, assuming all eligibility criteria are met.

Scottish Women’s convention raised a point around those who have applied for EU passports to keep their EU citizenship but were advised this would not impact on the provision for the citizens with acquired rights under the Withdrawal Agreement or those who had another legal route to enter or remain in the UK. Scottish Women's Convention did not identify any other negative impacts as a result of the proposed amendments to the FSP regulations.

There were no concerns raised in relation to the change to deduct any available assets of the deceased that can be used for funeral costs from the award of Funeral Support Payment in all cases. One stakeholder asked if property would be taken into consideration but was assured that property would not be taken into consideration when determining eligibility or level of award. Property would only be considered after the award has been made, in cases where recovery may be possible.

The proposal to include alkaline hydrolysis within the scope of the regulations was positively received by stakeholders with acknowledgements that funeral directors are keen to see alkaline hydrolysis introduced. Benefits were identified in relation to choice for bereaved people, environmental benefits and accessibility. Future proofing regulations ahead of any potential introduction of alkaline hydrolysis in Scotland was also identified as a positive step.

It should also be noted that some stakeholders felt these changes do not go far enough for those who are facing abject poverty and that those in the lower socioeconomic groups could have better targeted support such as an increase to the flat rate payment.

Stakeholders who have contributed to this FSD include Argyll & Bute Council, Funeral Solution Expert, National Association of Funeral Directors (NAFD), Scotmid Funerals, Scottish Women’s Convention, Shetland Council and Society of Allied and Independent Funeral Directors (SAIF).

Evaluation

We have carried out an evaluation of FSP with an external contractor carrying out interviews with a number of clients, third sector representatives who provide support to recipients, and funeral directors.^[14] The evaluation of FSP, which was published in July 2022, identified a number of positive findings with participants describing the application process as being quick and easy. Funeral Support Payment also reduced the need for borrowing and reduced money-related stress and grief at a difficult time for clients.

Potential improvements were also identified these include, raising awareness and increasing take-up of FSP and reviewing accessibility concerns with the application form.