Social security assistance - effects of inflation: report

Foreword

Each year certain types of devolved social security assistance will be uprated by inflation to ensure that the assistance people receive maintains its value over time when prices are increasing. This duty is set out in section 78 of the Social Security (Scotland) Act 2018 ('the Act') and our Social Security Charter. We will bring forward legislation to uprate by inflation, carer's, disability, employment-injury and funeral expense assistance, as well as the Scottish Child Payment, as and when these start to be delivered.

This report lays out the impact of inflation on all Part 2 Chapter 2 assistance currently being delivered, as required under section 77 of the Act, and what we intend to do for the next financial year. The report also sets out what we intend to do for the types of assistance where there is no requirement to uprate. The report will be extended to include all forms of top-up payment, including the Scottish Child Payment, under section 79 of the Act as and when these are paid.

There are various measures of price inflation that could be used to uprate social security assistance and there have been several debates in the Scottish Parliament on the most appropriate measure to use. A 'Policy Paper and Analytical Report' were provided to the Scottish Parliament Social Security Committee and the Scottish Commission on Social Security on 2 September 2019 for consideration and to allow them to express their views on what the most appropriate uprating measure would be. I would like to thank them for their valuable input into this highly technical area.

This is the first publication of the report on the impact of inflation on devolved social security assistance. I hope that the information provided explains our policy position on uprating for the financial year 2020-21 and the next few years. While Carer's Allowance and Carer's Allowance Supplement are not uprated under section 77 I have included these in the report to ensure a fuller picture is given. I will look to develop the content and scope of future reports as more types of assistance are delivered.

Shirley-Anne Somerville

Cabinet Secretary for Social Security and Older People