Social Security assistance - effects of inflation: report 2021-2022

1. Purpose

1.1 This report is published under section 86A^[1] of the Social Security (Scotland) Act 2018^[2] (‘the Act’) which requires Scottish Ministers to consider the effects of price inflation on all forms of assistance delivered under Chapter 2 of Part 2 or section 79 of the Act and to lay a report in the Scottish Parliament before the end of each financial year.

1.2 This report sets out the inflation-adjusted level of each relevant figure, explains how the inflation-adjusted levels have been calculated and states what the Scottish Ministers have done, or intend to do, in light of their calculations and their reasons for that decision.

1.3 The forms of assistance under the reporting duty in section 86A include:

1. Carer’s assistance (includes Young Carer Grant)

2. Cold-spell heating assistance

3. Winter heating assistance (includes Child Winter Heating Assistance)

4. Disability assistance

5. Early years assistance (Best Start Grant)

6. Employment injury assistance

7. Funeral expense assistance

8. Housing assistance

9. Short-term assistance

10. Scottish Child Payment

1.4 Of the above forms of assistance, the Best Start Grant, Child Winter Heating Assistance, Funeral Support Payment, Young Carer Grant, Short-term assistance, Scottish Child Payment and Child Disability Payment have been delivered and are included in this report for consideration. The report also includes Adult Disability Payment which is expected to be launched in the form of a pilot before the end of the financial year. The report is required to consider the change in prices since the previous report was laid before the Scottish Parliament on 29 January 2021.^[3]

1.5 This report also explains how the inflation-adjusted level of Carer’s Allowance Supplement has been calculated. Although this reporting is not required by the Act, it is being provided to offer a fuller picture of all the assistance that is being delivered. Similarly, there will be reporting on other forms of assistance which are not covered by the 2018 Act such as Job Start Payment and Best Start Foods.

1.6 Finally, section 86B^[4] of the Act requires Scottish Ministers to bring forward legislation before the end of each financial year, to replace the payment amount in the regulations which is, in their opinion, materially below its inflation- adjusted level. All forms of carer’s assistance (including Young Carer Grant), disability assistance, employment injury assistance, and funeral expense assistance (now referred to as Funeral Support Payment) and Scottish Child Payment that are set out in devolved legislation are to be uprated to the inflation-adjusted level set out in section 86A. This means that for the financial year 2022-23 there is a requirement to uprate Funeral Support Payment, Young Carer Grant, Scottish Child Payment, Child Disability Payment and Adult Disability Payment.

1.7 The Scottish Government is committed to embedding the eight Scottish social security principles in Section 1 of the Social Security (Scotland) Act 2018 into the policy making process. The approach to uprating, in particular, is intended to reinforce the principles that:

• social security is an investment in the people of Scotland;
• social security is itself a human right and essential to the realisation of other human rights;
• the Scottish social security system is to contribute to reducing poverty in Scotland and
• opportunities are to be sought to continuously improve the Scottish social security system in ways which— i) put the needs of those who require assistance first, and ii) advance equality and non-discrimination.