Job Grant consultation: response

Questions 8 to 11: Potential unintended consequences

Grant not being used as intended

Some respondents expressed concern that the money provided through a Job Grant payment may not be used to meet costs associated with moving into employment. Those costs will vary depending upon the individual circumstances of each young person and it would be neither feasible nor desirable to seek to define them.

Others raised concerns that recipients may leave employment, or not take up an offer of employment, despite receiving the grant and suggested that the money should be repaid in such circumstances. Given that the benefit, financial and otherwise, of being in employment will far outweigh the financial benefit of the Job Start Payment, we think it unlikely that applicants will insincerely apply for a job simply in order to obtain the grant. The payment will, in any case, only be available once in a two year period.

Disregards

A number of respondents also raised concerns that Job Grant could negatively impact other benefits which applicants could be receiving, particularly Universal Credit. Our intention is that Job Start Payment is fully disregarded from income tax, Universal Credit, housing benefit and council tax reduction calculations. We are engaging with HM Revenue & Customs, DWP and local authorities across Scotland to establish this through appropriate legislation and guidance.

Appeal rights

Some respondents expressed concern that, unlike other benefits delivered by Social Security Scotland, unsuccessful Job Grant applicants will not have a legal right to seek a redetermination of their application. This is because Job Grant is not one of the benefits being devolved from DWP under the Social Security Scotland Act 2018. It is a new benefit and the legal powers which enable Ministers to provide it are contained in the Employment and Training Act 1973 (they are being shared with Scottish Ministers through an Order under the Scotland Act). We will, however, introduce a process to enable unsuccessful applicants to ask for the decision on their application to be reviewed and to provide additional evidence. This will be similar to the process in place for Best Start Foods applications.