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

6. Devolved Assistance that continues to be delivered by DWP

6.1 Scottish Ministers have had executive competence for Carer’s Allowance (CA) since September 2018 and for Attendance Allowance (AA), Disability Living Allowance (DLA), Personal Independence Payment (PIP), Severe Disablement Allowance (SDA) and the Industrial Injuries Scheme (which comprises the Industrial Injuries Disablement Benefits (IIDB) and the Industrial Death Benefit (IDB)) since 1 April 2020.

6.2 Executive competence means that the Scottish Ministers have policy and funding responsibility for these forms of assistance. This competence is currently for the most part exercised under agency agreements, where the DWP deliver the payments on the Scottish Ministers’ behalf. While there are agency agreements in place for DWP to administer existing claims, the Scottish Ministers are committed to annually uprate the assistance at the same rate as applied by the DWP. This is the September CPI rate with the payment rounded to the nearest multiple of 5p, with the exception of IIDB where the 100% degree of disablement entitlement is rounded to the nearest 10p and the lower rates rounded to the nearest 1p while the IDB is normally uprated through the triple lock guarantee, which ensures that pensions increase by the greatest of average earnings, prices as measured by CPI or 2.5%. However, due to the impact of COVID-19, earnings growth has been exceptionally high at 8.8% and as a result the UK Government has determined that the increase will be in line with the September CPI of 3.1%.

6.3 Social Security Scotland will progressively take over administering these benefits from the DWP but until Scottish Government regulations are in place, so that uprating can be achieved through the 2018 Act, the Scottish Ministers will be responsible for uprating these forms of assistance, where required, through powers under UK legislation.

6.4 The Scottish Ministers will be responsible for bringing forward legislation to uprate AA, CA, DLA, PIP, SDA, IIDB and IDB in April 2022.