Scottish Welfare Fund: action plan

Part A: Immediate/ Short Term Improvements

The following actions will be developed and implemented in partnership with stakeholders from Autumn 2023 until the end of Spring 2024:

Theme 1: Improving Clarity and Consistency of Communication and Promotion

We will work with stakeholders to:

1. Investigate and introduce further training for Local Authority decision-makers, in partnership with the SPSO, third sector and other agencies.

2. Re-establish regular Practitioners' Forums to facilitate the sharing of best practice across Local Authorities. The Scottish Government will act as the secretariat in order to develop and implement a programme of work. We will include the opportunity for the third sector and other agencies to share their knowledge on particular issues and topics. (This action cross refers to other policy improvements considered within Theme 2 on consistency of decision-making).

3. Improve Local Authorities' direct communication with applicants by investigating feasibility of:

i. Establishing and resourcing a freephone number;

ii. Requiring decision-makers to phone applicants, where it is in line with the applicant's needs and any reasonable adjustments, in the first instance to communicate their application decision, answer questions, and signpost other services.

4. Develop and provide standardised communication messages to Local Authorities and Scottish Prisons for SWF advertisement and information sharing. This information will detail the Fund's purpose, eligibility requirements, avenues for application, what to expect during the application process and the right to review.

A key area of focus of the Review is the need to improve communications by Local Authorities in terms of clarity, consistency, and tone. A key finding within the Review is that the Local Authority in which an applicant applies has a "significant impact on their likelihood of success" (p. 49), even when controlled for other factors. Applicants to the Fund and external groups also noted difficulties understanding the eligibility criteria and reasons for decision-making.

Discretion is built into the Fund. It rightly allows Local Authorities to carry out decisions that best suit the needs of their community and maintain connections with organisations local to the area. The Review demonstrates that analogous schemes within the UK that are centralised do not necessarily have better outcomes than localised schemes such as the SWF. While there will always be some variation with a discretionary scheme, it is important that there is consistency in messaging for applicants across Scotland.

To this end, the Scottish Government will work to close the communication gap and ensure consistency across Local Authorities in how they interact and communicate with applicants to the SWF. This will include providing standardised communication messages and materials for the SWF – including on eligibility, avenues for application, what to expect during the application process and the right to review.

The Scottish Government will also work to ensure there is consistent messaging around referrals to longer-term support, particularly given that the social security landscape in Scotland has transformed in recent years and the role of the SWF as an occasional support grant needs to be positioned in that context. Local Authorities will still be able to tailor their communications to provide local support contacts. Improved referrals should lead to Crisis Grant and Community Care Grant applicants having an improved chance of being connected into support that can more sustainably and effectively target and resolve their financial difficulties.

Theme 2: Increasing Consistency of Decision-Making

We will work with stakeholders to:

5. Review the Statutory Guidance to provide clearer definitions on eligibility and what constitutes 'exceptional circumstances' with regard to repeat applications. (This action cross-refers with other proposed policy improvements considered within Theme 6 on Statutory Guidance).

6. Update the Statutory Guidance to include the principles of the Social Security Scotland 'Our Charter' to ensure that the approach to decision-making is grounded in dignity, fairness and respect, including during the evidence gathering process (This action cross-refers with other proposed policy improvements considered within Theme 4 on application form and process).

7. Investigate and examine options for more centralised support for Local Authorities, recognising resourcing limitations and need to maintain discretion (This action cross refers to other policy improvements considered within Theme 1 on consistency of communication).

Related to Theme 1 is the need to strengthen the consistency of decisions made by Local Authorities. There is a clear tension between delivering consistency and maintaining discretion. The Scottish Government is clear on the benefits of Local Authority discretion to meet the needs of their individual communities, however, it is important that extreme variations between Local Authorities are addressed. The Scottish Government will take steps through this Action Plan to investigate more enhanced centralised support for Local Authorities subject to future funding deliberations.

The re-implementation of regular Practitioners' Forums as outlined in Theme 1 will also ensure there is improved sharing of best practice between Local Authorities to enhance consistency. By implementing clear guidelines for application evidence gathering, we can also ensure that Local Authority decisions are being based on the same threshold of evidence and are implemented in a framework grounded in trust, consistent with the Scottish Government's Social Security Charter^[8]. Further actions outlined in Theme 6, such as more regular updates to the Statutory Guidance will ensure that the Guidance remains relevant and promotes greater consistency.

The Scottish Government will also take steps to ensure that there are clear definitions in the Statutory Guidance. While the discretionary nature of the SWF will be maintained, providing more clarity to Local Authorities will ensure that both applicants and decision-makers are clear on the circumstances in which the SWF can provide support.

Theme 3: Increasing Awareness and Improving Accessibility

We will work with stakeholders to:

8. Investigate if language barriers are a significant and widespread issue for applicants to the SWF and work to implement long-term solutions with Local Authority delivery partners.

9. Prepare standardised decision letters to all applicants with details on the right to review and referral to national welfare debt services (this action cross refers with other proposed policy improvements considered in Theme 4).

10. Explore and implement more specific requirements for advertisement beyond what is currently required within the Statutory Guidance to address unmet need across applicant demographics, while recognising resource implications (this action cross refers with other proposed policy improvements considered in Theme 6).

The Review highlights a need for improved promotion of the SWF in terms of general publicity as well as the right to review a decision by Local Authorities and the Scottish Public Service Ombudsman (SPSO). Many of the applicants interviewed in the course of the Review noted that they only found out about the SWF "by chance" (p. 40). Local Authorities stated that given the high demand for the SWF they felt that general awareness was already widespread. The Review also noted that more work needs to be undertaken to investigate the impact of language barriers for SWF applicants.

Despite Local Authorities acknowledging high demand for the SWF, a key issue is the need to ensure that the SWF reaches those who currently have an unmet need and the role of promotion in achieving this. For example, the Review highlights that older people were less likely to apply to the SWF. Recent research by Independent Age also demonstrated the unique financial pressures for pension age individuals in Scotland and limited uptake to the SWF from research participants^[9], while the Scottish Women's Budget Group and Poverty Alliance found a lack of awareness of SWF support among women^[10].

The Scottish Government recognises that social security support needs to be delivered alongside a concerted promotional effort. In the last four years, the Scottish Government has published two Benefit Take-Up Strategies to ensure people are aware of, and enabled to access the financial support that they are entitled to. The Scottish Government recognises that actions taken within this Action Plan must support this holistic and preventative approach to income maximisation.

Given that the SWF is delivered by Local Authorities, rather than centrally through Social Security Scotland, the Scottish Government has to ensure that measures to support awareness are balanced with Local Authority discretion and tailored to their area. With that said, the Scottish Government will work with stakeholders to improve awareness of the SWF and consistency in approach throughout the country on a national level. These messages will be tailored to meet the needs of specific groups, such as those soon to be liberated from prison. Enhanced promotion will also place those experiencing unmet need, such as older individuals, at the centre of improvement work, ensuring that awareness of the Fund is boosted and the language used is fully accessible.

Theme 4: Simplifying and Streamlining the Application Process

We will work with stakeholders to:

11. Develop and implement a refined and standardised application form to be used across all Local Authorities and in all application avenues.

12. Provide guidelines for application referrals regardless of whether their application was successful or not.

The Review highlights the need for the application form to be shortened and simplified, with intrusive questions removed. Beyond the Review, the Scottish Government's engagement with the Scottish Prison Service has uncovered issues with the standardised physical application form used by prisons and compatibility with the information required by Local Authorities.

It is for these reasons that the Scottish Government will work with stakeholders to create a simplified, streamlined, and standardised application form for use across all Local Authorities. The Group members noted that this form should be trauma-informed and simplified. Further, they noted that personal questions on the form should serve the purpose of providing a welfare-check on the applicant, as opposed to acting as a gatekeeping mechanism. Having a shortened and standardised form that incorporates this feedback from the Group will simplify the process for applicants. In addition, it will reduce the inconsistencies across Scotland and tighten communication on the SWF. These measures will support the improvement actions set out in Theme 3 around awareness and accessibility by ensuring that those who apply to the SWF receive the same information on the application process and are required to respond to the same questions on their application form, no matter what Local Authority they apply to, and irrespective of the application avenue.

For those applying within prisons, having a streamlined physical application process will reduce delays to applications. In the longer-term, the Scottish Government will explore with the Scottish Prison Service how online applications could be facilitated within the institutional setting to enable for quicker processing and decisions from Local Authorities on applications.

The inclusion of guidelines for referral contacts will also ensure greater awareness of the application process and next-steps. Referrals play an important role in ensuring applicants receive income maximisation advice and obtain further support with the aim of addressing the root cause of the applicant's need, reducing the likelihood that applicants will need to return to the SWF. Research from the Trussell Trust and Save the Children demonstrates the importance of referrals noting:

"One applicant we heard from through this research had made repeated applications for Crisis Grants over the past two years because of persistent problem debt. Until they were pointed to debt advice services through a support worker at their local food bank, the financial challenges driving them into destitution were not addressed. The participant felt that had they been pointed to independent advice services earlier, they would not have been in a position of needing to regularly rely on Crisis Grants to meet food and fuel costs (p. 42).^[11]"

It is therefore, crucial that referrals and holistic support is provided to every applicant to the SWF. Many Local Authorities already have excellent referral practices in place, including that of North Lanarkshire Council's referral gateway system. The Scottish Government will work with Local Authorities to encourage the sharing of best practice. We will also implement guidelines and work with Local Authorities to ensure that clear referrals are always offered to SWF applicants, including by maintaining localised connections to support services.

Theme 5: Reducing Processing Timescales and Assessment Prioritisation

We will work with stakeholders to:

13. Review timescales and assessment prioritisation within the Statutory Guidance revision, subject to future funding considerations. (This action cross-refers with other proposed policy improvements considered within Theme 6 on updating Statutory Guidance).

The Review details a preference among applicants and external stakeholders for quicker decision-making and delivery of grants. Local Authority delivery partners questioned whether guide timeframes could be more flexibility applied to enable greater prioritisation based on the decision-makers assessment.

Crisis Grants by their very nature need to be delivered at pace by Local Authorities. This is due to the negative outcomes on applicants and their families if left waiting out of pocket in an emergency or disaster situation. Similarly, Community Care Grants should be delivered as soon as possible to allow applicants to re-establish themselves in the community or remain in the community, preventing the need for institutional care. Those applying to the SWF are often in an extremely vulnerable position and the Scottish Government wants to ensure they can receive support as soon as possible.

With that said, the Scottish Government recognises the additional administrative pressure that would be placed on Local Authorities if application timeframes were shortened. It is for this reason that decision-timescales and assessment prioritisation must be considered in the round as part of a Statutory Guidance review, as committed to within Theme 6. At present, Crisis Grant decisions must be made within 48 hours. Community Care Grant decisions must be reached within 15 working days. While we acknowledge that heightened demand for the SWF has meant that not all decisions are made within the Statutory Guidance timeframes, the vast majority of applicants receive a decision within the target timeframes – 93% of Crisis Grants and 86% of Community Care Grants^[12].

Members of the Group advised that as part of this work, the Scottish Government should ensure consistency for Community Care Grant decisions in principle. Further, they noted that flexible timeframes should be allowed when it is in the best interests of the applicant. For example, when the applicant requires more time to gather supporting evidence for their application. These points will be considered further during the Statutory Guidance revision.

Other actions, such as investigating options for more centralised support, set out in Theme 3 should reduce the administrative pressure on Local Authorities and will assist in meeting target timescales. Improved communication messages, set out in Theme 2, will also ensure that applicants have a clear idea of the likely timeframe to receive a decision, providing more certainty to applicants.

Theme 6: Updating Statutory Guidance

We will work with stakeholders to review the Statutory Guidance, with a particular focus to:

14. Restructure it for improved accessibility and ease of use for decision-makers, organisations and service users.

15. Review the income thresholds for applicant eligibility and consider alignment with those used by the Self Isolation Support Grant, while recognising the need to firstly assess financial implications and the ways that Local Authorities can efficiently verify income. This review will also consider the removal of current requirements for applicants to first investigate other avenues for financial support, such as applying for an overdraft, or asking family and friends for help before applying to the SWF.

16. Assess the type and quantity of evidence required for decision-making and provide further guidance to Local Authorities to ensure that the assessment process embeds the principles of fairness, respect and trust.

17. Review the methodology to calculate the cost of living award rates to ensure they are adequate to meet the increased cost of goods and services. This includes assessing the removal of the under 25-rate of payment and maximum daily award rate.

18. Implement guidelines and standards for Tier-One Reviews to include a focus on learning from the outcomes of review and sharing this learning.

19. Introduce a requirement for an annual review to take place, with a standing Statutory Guidance Review Committee established.

The Review finds that the Statutory Guidance is viewed positively on the whole, however, there were substantive suggestions for improvement by stakeholders. These included the need for more regular reviews of the Guidance, an update of the Guidance to ensure it meets equalities expectations, as well as a desire for the Guidance to be restructured for the ease of use for decision-makers.

The Review also notes that Local Authorities that have a more self-critical approach to Tier-One reviews are less likely to have decisions overturned by SPSO for Tier-Two reviews. After further engagement with SPSO, we have determined that the Statutory Guidance should include guidelines for undertaking Tier-One reviews to reduce the likelihood of overturned decisions. This will reduce some of the administrative pressure for SPSO and will ensure greater consistency across Local Authorities in how they approach the review process.

As suggested in the Review, the Scottish Government will also commit to review the income thresholds to better reflect current income levels, while factoring in financial implications. We will also assess the removal of the under-25 rate of payment, as goods and services cost the same amount irrespective of age. We will also explore removal of the current requirement for applicants to first exhaust all other avenues of support before applying for a Crisis Grant, such as by asking friends and family for money or applying for an overdraft. The Scottish Government recognises that this requirement may be impacting financial independence and having an impact on those who are already struggling to make ends meet. The revised Statutory Guidance will address this and ensure that equalities considerations are embedded in the SWF administration and delivery.

The Statutory Guidance was last updated in March 2021. It has not been updated since due to the ongoing Review. With the publication of this Action Plan, the Scottish Government will restructure and update the Statutory Guidance for ease of use and accessibility. Going forward as part of this Action Plan, the Scottish Government will also establish a standing Statutory Guidance Review Committee with stakeholders to review the Guidance on an annual basis. This is to ensure the Statutory Guidance remains relevant and is responsive to emerging issues.