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

5. Social Security Payments in 2021-22

5.1 The social security payments which Social Security Scotland were responsible for during the financial year 2021-22 were:

5.2 Carer’s Allowance Supplement: Carer’s Allowance Supplement is a payment which provides extra support to people in receipt of Carer’s Allowance in Scotland. It is paid every six months and was initially set at a level which would raise Carer’s Allowance to the equivalent of the rate of Jobseeker’s Allowance (JSA) for those aged 25 and over. Since 2018-19 the Scottish Government has uprated Carer’s Allowance Supplement annually, in accordance with section 81 of the Act. This involves the supplement being calculated using an inflation-adjusted rate of Jobseeker’s Allowance, and taking into account any change to the weekly rate of Jobseeker’s Allowance paid by the DWP. As a result of uprating, Carer’s Allowance and Carer’s Allowance Supplement combined now exceed the equivalent weekly rate of Jobseeker’s Allowance. In addition, through provisions in the Carer’s Allowance Supplement (Scotland) Act, in December 2021 an extra payment of Coronavirus Carer’s Allowance Supplement will be made to Carer’s Allowance recipients, on top of the normal Carer’s Allowance Supplement.

5.3 Young Carer Grant (YCG): The Young Carer Grant is the first of its kind in the UK and provides eligible young carers aged 16, 17 and 18 with a payment of £308.15, which can be applied for annually. There is a statutory requirement to uprate the grant annually and the Scottish Government has been uprating the grant since 2020-21.

5.4 Funeral Support Payment (FSP): Funeral Support Payment is a one-off payment to help meet the costs of a funeral and replaced Funeral Expenses Payment, delivered by DWP, in September 2019. Eligibility has been widened by 40% and in April 2020 the flat rate payment toward funeral costs was increased from £700 to £1000. As a result of uprating in April 2021 the flat rate is currently £1010. In 2021/22 Funeral Support Payment provided on average £1,799 towards the total costs of a funeral. There is a statutory requirement to uprate Funeral Support Payment annually and the Scottish Government has been uprating the payment since 2020-21.

5.5 Best Start Grant (BSG): The Scottish Government has replaced the DWP’s Sure Start Maternity Grant with the Best Start Grant in Scotland. Best Start Grant provides support during three key transition points in a child’s early years. The Pregnancy and Baby Payment provides £606 for a first child and £303 for second and subsequent children. The Early Learning Payment provides £252.50 per child to support child development, and School Age Payment provides £252.50 per child to help with the costs of preparing for school. The UK Government makes no equivalent provision to either the Early Learning or School Age Payments. There is no statutory requirement to uprate Best Start Grant.

5.6 Best Start Foods (BSF): Best Start Foods is a new Scottish payment available to low income pregnant women and families who have children aged up to three years old. It is paid as a credit onto a payment card that can be used to buy healthy foods such as milk, fruit and vegetables. It replaced the UK-wide Healthy Start vouchers in Scotland and was increased in August 2021 from £4.25 to £4.50 per week for each eligible person in the family or £9 per week for a child under 1 year old. Best Start Foods is not delivered under the Act and so there is no statutory requirement to uprate or to provide the inflation-adjusted figures in this report, but they are included for completeness.

5.7 Job Start Payment (JSP): Job Start Payment was launched on 17 August 2020 and provides a one-off payment to eligible young people to help them with costs they may incur when starting a job. It is available to young people who reside in Scotland aged 16 to 24 and aged up to 25 for care leavers. The payment is £252.50. A higher award of £404 is made to those who have responsibility for a child. Job Start Payment is not delivered under the Act and so there is no statutory requirement to uprate or to provide the inflation-adjusted figures on Job Start Payment in the report, but they are included for completeness.

5.8 Child Winter Heating Assistance (CWHA): CWHA provides an annual payment to disabled children and young people in receipt of the highest rate of the care component of Disability Living Allowance/Child Disability Payment or the enhanced rate of Personal Independence Payment, to support households with the additional costs associated with winter fuel bills. Social Security Scotland began paying Child Winter Heating Assistance from 27 November 2020. In 2020 the payment was £200. It was uprated to £202 in 2021/22. There is no statutory requirement to uprate Child Winter Heating Assistance.

5.9 Scottish Child Payment (SCP): SCP pays the equivalent of £10 per qualifying child per week, paid every four weeks in arrears to qualifying applicants. It is paid as a top up of certain qualifying reserved benefits using powers available under the Social Security (Scotland) Act 2018. SCP is intended to help towards the costs of supporting a family and forms part of the wider Scottish Government strategy to combat child poverty. Ministers will have a statutory duty to consider uprating yearly from April 2022. We have committed to doubling the weekly amount of Scottish Child Payment to £20 as soon as possible and this will be achieved by increasing the rate to £20 from April 2022.

5.10 Child Disability Payment (CDP): CDP provides support for the extra costs that a disabled child might have. It is the first application-based disability benefit to be introduced by the Scottish Government. CDP will replace Disability Living Allowance for children (DLAC). It is available to children and young people from the age of 3 months to 18 years old, who have care and/or mobility needs as a result of a disability. Like DLAC, CDP consists of a care and a mobility component, and an eligible child may qualify for either of these or both, depending on the nature of their disability. The care component has three different payment rates: lowest (£23.70), middle (£60.00) and highest (£89.60). The mobility component comprises two rates: lower (£23.70 if the child is 5 or over) and higher (£62.55 for children aged 3 or over). Both care and mobility components are paid four-weekly in arrears, except for terminally ill children, whom Social Security Scotland will pay weekly. Social Security Scotland began accepting new applications from children under 16 on 26 July 2021 in 3 local authority areas: Perth and Kinross, Dundee City and Na h-Eileanan Siar (Western Isles). Since 22 November 2021, children under 16 in all other Scottish local authority areas have also been able to make an application for CDP. There is a statutory requirement to uprate CDP by at least inflation.

5.11 Adult Disability Payment (ADP): ADP will provide financial assistance to help meet the additional costs of living with a disability or health condition. It is the most complex form of assistance that will be delivered by Social Security Scotland. ADP will replace Personal Independence Payment (PIP) in Scotland for individuals aged between 16 and (subject to some exceptions) state pension age who are making an application for disability assistance. ADP will consist of two components. The daily living component provides two levels of assistance for individuals who face increased barriers to carrying out daily living activities as a result of physical or mental health condition(s) and/or disability: the standard rate (£60.00) and the enhanced rate (£89.60). The mobility component provides two levels of assistance for individuals who face increased barriers to carrying out mobility activities as a result of physical or mental health condition(s) and/or disability: the standard rate (£23.70) and the enhanced rate (£62.55). There is a statutory requirement to uprate ADP by at least inflation.

5.12 Short-term assistance: This assistance is available for CDP only at the moment but will be available for certain other forms of assistance when they come into effect. It is available where Social Security Scotland has made a decision to reduce or stop an ongoing devolved benefit and that decision is subject to a request for a re-determination or an appeal. The intention is to ensure that an individual is not discouraged from challenging a decision or from accessing administrative justice by having to manage, for a period of time, with a reduced income. The value of the short-term assistance would always reflect any uprating during the period that it is in payment, ensuring that while a re-determination or appeal remains live, the client is not disadvantaged compared to an individual who remains entitled to the principal form of assistance.