Social Security assistance in Scotland: up-rating for inflation - 2025-2026

5. Devolved Assistance that continues to be delivered by the DWP

5.1 Scottish Ministers have legal, policy and funding responsibility for other forms of assistance that are delivered by the Department for Work and Pensions (DWP) through agency arrangements. These agency arrangements are required until all clients in Scotland are transferred from carer and disability benefits provided by the DWP to assistance provided by Scottish Ministers.

5.2 Carer’s Allowance, Attendance Allowance, Disability Living Allowance, Personal Independence Payment, Severe Disablement Allowance and the Industrial Injuries Scheme (comprising of the Industrial Injuries Disablement Benefits and the Industrial Death Benefit) are administered by the DWP on behalf of Scottish Ministers. Although there is not a requirement under the 2018 Act to include these forms of assistance in this report, they have been included to help provide a more complete view of the steps taken by the Scottish Government to investigate the impact of inflation for all devolved payments.

5.3 Scottish Ministers are committed to annually up-rate those devolved forms of assistance at the same rate as the DWP, which for 2025-26 is generally the CPI 12 month rate for September (1.7%), rounded to the nearest 5p. Exceptions include the Industrial Injuries Disablement Benefit where the 100% degree of disablement entitlement is rounded to the nearest 10p and the lower rates rounded to the nearest 1p while the Industrial Death Benefit (IDB) is normally up-rated through the triple lock guarantee, which ensures that pensions increase by the greatest of average earnings, prices as measured by CPI, or 2.5%.

5.4 IDB is part of the Industrial Injuries Scheme and is paid to the widow, widower or dependents of someone who has died as a result of an industrial injury or disease. In 2025-26, the UK Government has determined that IDB will increase by 4.1% in line with the growth in Average Weekly Earnings in the year to May-July 2024. The higher rate widow’s pension of £169.50 will increase to £176.45, the lower rate widow’s pension of £50.85 to £52.94. The widower’s pension of £156.20 will increase to £176.45. This is a closed benefit and was abolished for all new claims in 2012 and is payable only if the person died before 1988.

5.5 Social Security Scotland will progressively take over administering these benefits from the DWP but until then, Scottish Ministers will be responsible for bringing forward legislation through powers under UK legislation to up-rate these payments in April 2025.