Minimum Income Guarantee Steering Group: June 2022 minutes and meeting papers

Minimum Income Guarantee Expert Group: workstreams and progress update

Background

As proposed in the work plan presented at the December 2021 Strategy Group meeting, the Expert Group has been progressing detailed thinking under five workstreams. The outputs from each of these workstreams will feed into the interim report due to be published by the end of 2022. The workstreams meet approximately once every month or twice between each meeting of the Expert Group. Each of the five workstreams have agreed a workplan which includes areas for further research and analysis. The secretariat are supporting the commissioning of this research.

Progress highlights

The workstreams have each met three times since their initial inception meetings and have made good progress so far in considering options for what a MIG could look like. They are now looking at commissioning analysis from within the Scottish Government and outwith, to feed into the interim report as we begin to turn attention towards drafting.

In terms of design options, we have seen a number of important pieces of progress. This has included the equalities workstream putting in place the foundations for a strong impact assessment of a MIG from an equalities perspective, which we have been able to build-in from the start. This should become very valuable as we get later into the process.

The social security workstream has been exploring the potential key design features of the MIG payment part of a MIG, looking at a payment which could ultimately work to replace much of the existing income-assessed parts of the system, and how assessment and payment options can drive financial security for all groups rather than undermine it.

Equally, the level workstream has been exploring the options for where you set any guarantee, what the level of payment might look like, and the level at which support begins to reduce. In particular, the workstream has been considering the existing UK Minimum Income Standard and the need to consider what a MIS might look like in Scotland.

Alongside design options, the workstreams have been busy identifying their analytical needs, and have developed research requests for both Scottish Government analysts and those outwith the Scottish Government. In particular, the work workstream is seeking to understand the potential for a MIG to change behaviours within the economy and labour market, and the public opinion workstream is considering polling and focus group options to understand the potential benefits that a MIG could have for people across Scotland. This is in addition to the forthcoming panel of experts by experience of financial insecurity, which we have tendered for, and hope to have in place by the end of the summer.

The paper outlines specific progress from each workstream below:

Equalities workstream

The outputs from the equalities workstream will inform and guide, from an equalities perspective, the other workstreams as they make their decisions. The workstream has developed a living document that will continue to evolve as work progresses and should be used as a reference point for the Expert Group and other workstreams to embed equalities in decision making.

The workstream has commissioned two pieces of research:

• what research has been done into equalities issues in Minimum Income Guarantee (MIG) and Universal Basic Income (UBI)? This has been commissioned as a library search, the results of which are being processed for presentation to the workstream

• a piece on equalities proofed processes in the social security sector. This will look either policy or welfare design

In addition, the co-leads are developing a series of workshops to bring more voices to the table and to develop a more robust understanding of the barriers that specific groups might face in accessing support relating to a MIG. The first of these workshops is to be delivered in the summer and will be followed by one a month for 6 months. The topics to be covered are: labour market participation, care experienced individuals, domestic abuse, unpaid carers, participation, and intersectionality.

Level workstream

This workstream will set out options for the level that MIG will be set at, to inform the wider Expert Group and other workstreams as they formulate their advice and recommendations. The group will be looking at how to set and future proof the MIG level. The research to support this will be referenced in the interim report.

This workstream need to consider various household types and the complexities that come with this. The group have drawn upon IPPR’s and other organisations’ research, and the Minimum Income Standard (MIS) set annually by Loughborough University, with whom they have held a workshop to gain a better understanding of the suitability of applying the UK-wide MIS to Scotland. The group have asked the secretariat to facilitate a discussion with SG economists to establish where the current social security levels sit between the poverty and MIS levels for different household types.

Research on the additional costs of disability and caring has also been commissioned and completed as part of this workstream. The interim report will explore whether these costs should be met directly by a MIG, and how to ensure that everyone, regardless of disability or caring responsibilities, reaches the minimum income.

Social security workstream

The social security workstream is tackling the significant and complex issue of the relationship between a MIG and the current and future social security systems. They have been tasked with looking at what first step changes can be made towards a MIG under current powers, as well as what MIG could look like in a Scotland with greater powers over social security. The group have commissioned a paper exploring the scope of the Scottish Government's current social security powers. This will be used to identify shorter term step changes that can be made, and this will be set out in the interim report.

The workstream have begun discussions on how a MIG could be designed, how payments could be made, and how that would function alongside any existing means-tested benefits. The workstream has asked to commission analysis on this.

The workstream are looking at the issues of conditionality and individual vs household payments. The latter is especially pertinent to ensure that a MIG does not unintentionally put people in a situation that makes financial coercion easier for an abuser.

Work workstream

Fair Work will play a key role in meeting the aspirations of a MIG. This workstream will examine the relationship between social security and work and how a MIG could function within the current employment landscape to bring individuals to an acceptable minimum income level. The workstream has asked to commission research on how work interacts with the existing minimum income standard for different groups and how any shortfall can be quantified.

Similar to questions on conditionality from the social security workstream, this group are looking at how MIG can be designed to help people move into meaningful fulfilling employment and avoid punitive measures while doing so. The research asks in this area will be addressed by both Scottish Government officials and through engagement with the lived experience panel once it is up and running.

In a crossover with the level workstream, the work workstream is looking at how any system can be designed to ensure people are not unduly disincentivised from taking on more hours or more suitable or fulfilling employment. The issue of avoiding the creation of cliff edge scenarios and thus improving the well-being of recipients will be explored in the interim report.

Public opinion workstream

The public opinion workstream is central to the interim report and framing the narrative on MIG. The workstream has commissioned a short piece of work gathering evidence on public attitudes to increased social security expenditure, particularly focussed on public appetites for MIG and UBI type schemes. This piece of work has been completed and will inform the interim report.

This workstream will have oversight of the panel of experts by experience of financial insecurity. The contract for an external organisation to run this panel has been procured by the Scottish Government on the Expert Group’s behalf. This panel will be utilised throughout the Expert Group to contribute to the direction of the MIG project. They will also be asked their opinion on more detailed matters relating to the design and properties of a MIG.

The public opinion workstream will seek to ensure that the language around MIG is positive and aspirational, while testing whether the terminology used is appropriate and achieves buy in from the public and stakeholders.

Evaluation and piloting and year two workstreams

A planned workstream on evaluation and piloting is due to begin later in year one, once the five initial workstreams begin to produce outputs. This is to ensure that evaluation and piloting are considered from the outset.

During year two, following the production of the interim report, the following new workstreams are planned: cost and impact of MIG; steps to MIG through existing powers; further powers to deliver a MIG; paying for a MIG; and a MIG implementation plan. In addition the following workstreams will continue to operate: equalities; public opinion; and evaluation and piloting.