Money spent by the Scottish Government to mitigate Westminster policies: FOI release

Information requested

1. The names of all Westminster policies that the Scottish Government mitigate so the people don't have to pay it.

2. With each policy I would like the cost from every year that the Scottish Government has mitigated it.

3. I would also like a breakdown of how much Scotland got back from Westminster every year since 2007 till 2024.

Response

I enclose a copy of some of the information that you have requested.

For your first and second question – I will look to provide relevant information on each policy that we have interpreted to be mitigating Westminster policies – alongside the relevant cost from each year:

Scottish Welfare Fund

The Scottish Government has invested in vital services such as the Scottish Welfare Fund to help provide crisis support to help people establish independent living and is facing significant pressure. The bedroom tax, benefit cap, and shortfalls in local housing allowance have contributed to this increased demand. Information on its funding is publicly available here.

Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you. If, however, you do not have internet access to obtain this information from the website(s) listed, then please contact me again and I will send you a paper copy.

Universal Credit Scottish Choices

The Scottish Government is committed to using the limited powers it has, to make the delivery of Universal Credit better suited to the needs of those who receive it. Since 4 October 2017, we have been giving people in Scotland the choice to receive their Universal Credit award either monthly or twice monthly and to have the housing costs in their Universal Credit award paid directly to their landlord in both the privately and socially rented sectors.

The Department for Work and Pensions (DWP) delivers the Universal Credit Scottish choices on behalf of the Scottish Government and charges us for that. To implement the Universal Credit Scottish choices, the Scottish Government paid just over £0.5 million to the DWP in April 2018 for one-off costs, which included changes to the Universal Credit IT system and updates to DWP staff guidance and training.

On-going operational costs, based on the actual number of choices offered and taken up, were £178,595 for the period 4 October 2017 to 31 March 2019. Costs from 01 April 2019 to 31 March 2020 were £175,819, and costs for 01 April 2020 to March 2021 were £196,300. Costs for April 2021 to March 2022 were £141,860. Costs for April 2022 to March 2023 were £138,157. The total amount that the Scottish Government have paid to the DWP for the delivery of the Scottish choices from October 2017 till September 2024 is £898,445.

Discretionary Housing Payments

The Scottish Government mitigate the following UK Government policies through Discretionary Housing Payments (DHP):

• Bedroom tax (removal of the spare room subsidy)
• Benefit cap
• Earned Income Taper deductions
• Non-Dependent deductions
• Shared Accommodation Rate
• Local Housing Allowance reform

Table 1 below provides a breakdown of the Discretionary Housing Payments budget from 2013/14 to 2024/25 (present), by funding stream.

Please note:

1. Bedroom tax mitigation funding is demand-led to ensure all affected individuals can receive support equal to the amount taken away by this deduction.
2. Benefit cap mitigation funding has also been demand-led since 1st January 2023. Prior to 2023/24, benefit cap funding was included in DHP ”Other” funding.
3. DHP “Other” funding is a set amount and can be awarded to mitigate against Earned Income Taper deductions, Non-Dependent deductions, the Shared Accommodation Rate and where Local Housing Allowance rates do not meet an individual’s housing costs. At their discretion, Local Authorities may also award DHPs from this funding stream for non-welfare reform reasons, such as for rent in advance, deposits, and removals costs.

Table 1: Discretionary Housing Payments budget from 2013/14 – 2024/25 (present)                                     

Year

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

2024/25

Total

DHP, Bedroom tax budget

£20.00m

£35.00m

£35.00m

£35.00m

£47.60m

£50.10m

£52.30m

£59.70m

£71.00m

£68.10m

£69.70m

£74.84m

£618.34m

DHP, Benefit cap budget

£6.15m

£7.75m

£13.90m

DHP “Other”

£10.90m

£10.90m

£10.90m

£18.90m

£10.90m

£16.00m

£7.90m

£7.90m

£94.30m

DHP Admin funding

£1.20m

£1.20m

£1.20m

£1.20m

£1.20m

£1.70m

£2.20m

£2.20m

£12.10m

Total

£738.64m

Note: DHP Admin funding is paid to local authorities to support their administration of the scheme.

In regards to your third question – HM Treasury regularly issue a Block Grant transparency publication (latest published version available here - Block Grant Transparency: July 2023 - GOV.UK (www.gov.uk))

The next update is due to be published soon. This sets out in detail an analysis of all UK government funding changes to the Scottish Government. These go back as far as 2016-17.

Detailed analysis of each annual position is also available in the Scottish Affairs Committee Estimates memoranda – (available here - Scottish Affairs Committee - Estimate memoranda - Committees - UK Parliament).

The Supplementary Estimates memoranda tables set out details of the full funding position for each year. Main Estimates tables give the interim position for each year. These go back as far as 2010-11.

That level of detail on UK funding is not available prior to 2010-11. The Fraser of Allander analysis set out here - Weekly Update – is the Scottish block grant the largest or smallest it has ever been? | FAI (fraserofallander.org) gives an analysis of movement in the total Block Grant since devolution.

Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you. If, however, you do not have internet access to obtain this information from the website(s) listed, then please contact me again and I will send you a paper copy.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.