The Social Security (Miscellaneous Amendment and Transitional Provision) (Scotland) Regulations 2022: equality impact assessment

Key Findings

The increase in the value of SCP will provide greater financial support to parents of eligible children and the extension to the eligibility criteria for SCP will provide additional financial support to parents of children aged 6-15. This support is specifically targeted at low income families. Scotland is the only part of the UK to offer this type of support.

The changes being introduced will also ensure that a payment of SCP is able to be paid in the unfortunate situation where a child to whom a claim relates dies. These amendments will provide for a payment, equivalent to the value of Scottish Child Payments made in the 12 weeks prior to the child's death, to be made.

This will bring the payment closer in line with the reserved benefits which act as qualifying benefits for SCP.

Widening the meaning of kinship care for BSG, BSF, and SCP will ensure that, as we roll out Scottish Child Payment to children aged between 6 and 15, eligible kinship carers who are not related to the child but are known to them and have a pre-existing relationship with the child are included.

Introducing auto-award for elements of Best Start Grant aims to improve take up of Early Learning and School Age Payments will make it easier for eligible families to receive their entitlement.

Providing new exceptions to the general rule that an individual is only entitled to the higher Pregnancy and Baby Payment when they are applying in respect of their first child, will provide greater support for families who are more likely to be starting from scratch without the items that the Pregnancy and Baby Payment is intended to provide.

Widening the meaning of surrogacy for BSG and BSF will ensure that all individuals who are responsible for a child through formal surrogacy arrangements can be classed as having responsibility for the child.

Removing the condition for BSG that the child is not looked after by the local authority in residential care allows more low income families to benefit from this support. This aligns BSG with both BSF and SCP, which do not have this condition.

As well as these overarching benefits, there is also evidence that the changes will have particular impact for the following groups.

Age

The changes that we are making will positively affect both young parents and children and may help to advance equality of opportunity by providing them with greater financial support, providing financial support to more parents/carers of children, and making it easier for them to receive the support that they are entitled to.

They may also have a positive effect in fostering good relations between people, as Social Security Scotland staff may have the opportunity to understand more about the difficulties faced by young people who may rely on benefits and the children who are supported by them.

Young parents

The latest analysis of client diversity and equalities data^[18] shows that for approved SCP applications between December 2020 and May 2021, 15% (4,595) were from people aged 16-24. This analysis also shows that for approved BSF and BSG applications in the same period, 21% (3,005) were from people aged 16-24.

Parental age has a significant impact on child poverty rates: 55% of children whose mother is aged under 25 are in relative poverty, compared with 23% of children whose mother is 25 or over.^[19] Naomi Eisenstadt, the First Minister's Independent Poverty and Inequality Advisor, produced a 2017 report^[20] highlighting some of the reasons young people might experience poverty including: an increasing proportion are living in the private rented sector; they are more likely to be in low quality employment; and more likely to experience difficulties accessing the labour market. She recognised that the use of Scotland's social security powers could be useful to support young people.

The Scottish Government's Pregnancy and Parenthood in Young People Strategy^[21] highlights that young mothers are considerably more reliant on state benefits and tax credits than older mothers – a position that remains the case as the child ages, meaning that they are more likely to be eligible for the FFP. These young parents will now receive greater support, as the value of SCP is increased and SCP is expanded to children aged between 6 and 15 years of age.

It is clear from our user testing that many young parents find accessing the welfare and income to which they are entitled confusing and difficult. Introducing auto-award for elements of Best Start Grant aims to improve take up of Early Learning and School Age Payments, and will make it easier for these young parents to receive their entitlement.

Children

We introduced the SCP early for eligible families with children under 6. This decision to pay under 6s early was made as it was expected to have a positive impact on tackling child poverty and targeted action at those families that needed it most. The early years are key to improving long term outcomes with socioeconomic differences having implications in later decades.^[22]

The extension to the eligibility criteria for SCP will provide additional financial support to parents of children aged 6-15 and the increase in the value of SCP will provide greater financial support to all parents of eligible children. This is specifically targeted at low income families. Scotland is the only part of the UK to offer this type of support.

The changes being introduced also ensure that SCP is able to be paid for an additional period in the unfortunate situation where a child to whom a claim relates dies. This will bring the payment closer in line with the reserved benefits which act as qualifying benefits for SCP and provide a more compassionate and dignified system of support.

Introducing auto-award for the Early Learning Payment and School Age Payment for eligible applicants in receipt of SCP will make it easier for parents and carers of nursery and school age children to access their entitlement.

By providing new exceptions to the general rule that an individual is only entitled to the higher Pregnancy and Baby Payment when they are applying in respect of their first child, we will provide greater support for a small group of vulnerable children whose families who are more likely to be starting from scratch without the items that the Pregnancy and Baby Payment is intended to provide.

We recognise that children can be cared for in a range of different environments including through kinship care. In 2021, 4,399 children were placed formally with kinship carers.^[23] Widening the meaning of kinship care for the FFP will ensure that, as we roll out Scottish Child Payment to children aged between 6 and 15, eligible kinship carers who are not related to the child but are known to them and have a pre-existing relationship with the child are included. Other carers may still be able to qualify providing they can meet the eligibility criteria, including child responsibility.

The BSG and BSF regulations currently set out that being responsible for a child includes where a child is treated in law as the child of an individual by virtue of an order under section 54 of the Human Fertilisation and Embryology Act 2008. These provisions have been expanded to include reference to an order under section 54A of that Act which provides that one person may apply for a parental order (surrogacy). By expanding the meaning for BSG and BSF to also include reference to section 54A, we are ensuring that all children in formal surrogacy arrangements can be supported by these benefits.

Removing the BSG condition that the child is not looked after by the local authority in residential care aligns with the approach taken for SCP and BSF. This will mean a child who is in residential care will still be able to receive the support provided by BSG as long as their parent/carer is still responsible for the child and meets the other eligibility conditions.

Disability

The changes that we are making will positively affect disabled people and may help to advance equality of opportunity by providing greater financial support to carers of an eligible disabled child. It will also make it easier for both disabled people and carers of a disable child to receive their entitlement. Carers of a child with a life limiting condition will also benefit from changes to SCP which will result in the payment continuing for an additional period after the child dies.

They may also have a positive effect in fostering good relations between people, as Social Security Scotland have implemented a range of measures to support the diverse range of needs of disabled people. Social Security Scotland staff may also have the opportunity to understand more about the difficulties faced by disabled people who may rely on these benefits and disabled children who are supported by them.

The latest analysis of client diversity and equalities data^[24] shows that for approved SCP applications between December 2020 and May 2021, 15% (4,755) were from those that identified themselves as having a physical or mental condition or illness lasting or expected to last 12 months or more. This analysis also shows that for approved BSF and Best Start Grant applications in the same period, 17% (2,415) were from those that identified themselves as having a physical or mental condition or illness lasting or expected to last 12 months or more.

Poverty rates are higher for households when a family member is disabled, 29% of children living with a disabled person are in relative poverty compared to 24% of all children.^[25] This is often linked with the additional costs of having a disability and the fact disabled people are less likely to be in employment. Disabled children are also more likely to experience poverty which may be a result of the higher costs of living with a disability, reduced opportunities for adults in the household to undertake paid work and barriers to benefit take-up. However, despite being well-reported, the reasons for the association between poverty and childhood disability are not yet fully understood.^[26]

FFP eligibility criteria reaches families on lower incomes so we expect the payments to have a positive impact on these families. It is also expected that introducing auto-award for elements of Best Start Grant will make it easier for those who may find applying for benefits more difficult. Changes to SCP may provide support to families where children and parents have life limiting conditions. SCP will be paid for an additional period in the unfortunate situation where a child to whom a claim relates dies.

Our most recent Benefit Take-up Strategy,^[27] published in October 2021, highlights our commitment to inclusive communication. Social Security Scotland are working closely with stakeholders to embed inclusive communication principles across everything that they do. The current service includes:

• promotional benefit information proactively produced in Easy Read, and Social Security Scotland work with stakeholders to get this content into the hands of those who need it;
• British Sign Language (BSL) video relay service, available through Contact Scotland;
• deafblind interpreters, Text Relay and electronic note taker services;
• all letters, information and guidance are available in Braille, Large Print, Easy Read and various Audio formats; and
• online content compatible with screen reader software on Jaws, Voiceover and Non Visual Desktop Access (NVDA) platforms.

Social Security Scotland has also developed an e-learning module to ensure staff understand what inclusive communication is and how to apply the principles in their individual work.

The implementation of measures to support this diverse range of needs is essential both for allowing disabled people to have equal access to their entitlement and foster a positive relationship between this community and Social Security Scotland.

Sex

The changes that we are making will positively affect women as we know that the majority of people who claim the FFP are women. They may also help to advance equality of opportunity by providing greater financial support to eligible parents and carers of children and making it easier to receive the support that they are entitled to. We will also be providing greater support to pregnant persons and parents/carers of a baby who are forced to leave the home due to domestic abuse with a child/children. Again, we know that the majority of people who are victims of domestic abuse are women.

They may also have a positive effect in fostering good relations between people, as Social Security Scotland staff may also have the opportunity to understand more about the difficulties faced by those who may rely on these benefits.

The latest analysis of client diversity and equalities data^[28] shows that for approved SCP applications between December 2020 and May 2021, 89% (26,940) of were from those that identified as women, 9% (2,300) as men and less than 1% (15) in another way. This analysis also shows that for approved BSF and BSG applications in the same period, 92% (13,235) were from those that identified as women, 6% (915) as men and less than 1% (5) in another way.

As the first Tackling Child Poverty Delivery Plan^[29] sets out, we have conclusive evidence that poverty and gender are inextricably linked and that women are more likely to access the social security system.

Women are less likely to be economically active, making up almost 60% of unpaid carers^[30] resulting in a range of barriers to paid employment and progression. Typically, when they are in paid employment, they earn less per hour on average than men. Provisional results from 2021 put the mean gender pay gap at 10.1% when comparing men's and women's overall average hourly earnings.^[31]

Particular groups of women are at greater risk of poverty, including single parents. The poverty rates are highest for female single parents (38%), whilst the poverty rate for single women without children was 27%. For single men without children the poverty rate was 34%. Estimates for single fathers are not available due to small sample sizes.^[32] We know that mothers make up the majority of lone parents in Scotland, with the Labour Force survey suggesting it is around 88%.^[33] In December 2021, single adult families with children accounted for just over half (53%) of all families with children claiming Tax Credits across the United Kingdom.^[34] Meanwhile, single adult families with children accounted for a larger proportion, 72%, of all families with children claiming Universal Credit across Great Britain.^[35]

Secondary analysis of published Best Start Foods statistics up to 28 February 2022^[36] provides a further insight into the reach of the benefit. For example:

• 63% (69,710) of those who had their applications approved for Best Start Foods were assumed to be lone parents. However, since it is possible for applicants to not fill in information about their partners, overestimation of lone parents can occur and thus caution is needed when interpreting this figure.

Given that Universal Credit and tax credits are part of the eligibility criteria for the FFP, it is expected that lone parents will benefit disproportionately from this policy, that includes the increased value of SCP and the increased support provided by extending SCP to include children aged between 6 and 15 years old, and that it is a positive measure to help tackle discrimination.

Parents and carers of a child or children who have been forced to leave the home due to domestic abuse are also more likely to be women. In 80% of all incidents of domestic abuse recorded by the police in 2019-20, the victim was a woman and the accused was a man (where gender information was recorded).^[37] Stakeholders highlighted that pregnancy and the first year of a child's life are a high risk time when domestic abuse can intensify. These women, whose earnings are often limited when pregnant or looking after a young child, often have no financial means to leave home. Providing an exception to the general rule that an individual is only entitled to the higher Pregnancy and Baby Payment when they are applying in respect of their first child to applicants in this situation intends to provide greater support, recognising that they are more likely to be starting from scratch without the items that the Pregnancy and Baby Payment is intended to provide.

We are also doing as much as possible to ensure the payment goes to the main carer in instances where there is a competing claim. We use a hierarchy to ensure the SCP is paid to the person who meets a more robust test of child responsibility. In December 2021, we introduced amendment regulations which give Social Security Scotland additional powers when considering competing claims for SCP and BSG. These additional powers will help ensure that the individual who is actually looking after the child receives SCP and/or BSG in the event of a competing claim.

Gender reassignment

The latest analysis of client diversity and equalities data^[38] shows that for approved SCP applications between December 2020 and May 2021, less than 1% (105) were from those that identified themselves as transgender and 4% (1,025) preferred not say. This analysis also shows that for approved BSF and Best Start Grant applications in the same period, less than 1% (35) were from those that identified themselves as transgender and 3% (410) preferred not say.

Gender reassignment is a protected characteristic, as defined in the Equality Act 2010. The protected characteristics of sex and gender reassignment apply as much to men and those who identify as male as they do to women and those who identify as female. The Scottish Government does not have sufficiently robust evidence to draw conclusions on gender reassignment in relation to income and poverty. Research indicates that transgender people are subject to higher levels of prejudice than other protected characteristic groups but that higher levels of public acceptance suggests they may now feel more confident expressing their identity.^[39]

The FFP are payable to someone regardless of gender reassignment. No issues have been raised by stakeholders in relation to the changes we are making to the FFP.

Sexual orientation

The latest analysis of client diversity and equalities data^[40] shows that for approved SCP applications between December 2020 and May 2021, 90% (27,010) were from those that identified as heterosexual, 2% (595) as bisexual, less than 1% (105) as gay and lesbian, less than 1% (115) in another way, and 7% (2,130) preferred not to say. This analysis also shows that for approved BSF and BSG applications in the same period, 92% (13,260) of approved applications were from those that identified as heterosexual, 2% (285) as bisexual, less than 1% (45) as gay and lesbian, less than 1% (50) in another way, and 6% (820) preferred not to say.

It is acknowledged that the Scottish Government does not currently have sufficient data on the experiences of those accessing the benefit system dependent on sexual orientation. However, we are committed to continuing to review this issue as part of our ongoing fulfilment of the equality duty.

The Scottish Government is committed to engaging with this group to build a service that meets their needs with 9% of Experience Panel members identifying as lesbian, gay or bisexual who have been actively involved in the design of Social Security Scotland's service.^[41]

The FFP are payable to someone regardless of their sexual orientation. No issues have been raised by stakeholders in relation to the changes we are making.

Race

The changes that we are making will positively affect people belonging to ethnic minorities and may help to advance equality of opportunity by providing greater financial support to eligible parents and carers of children and making it easier to receive the support that they are entitled to without the need to apply. We will also be providing greater support to pregnant persons and parents/carers of a baby who have been granted refugee status, humanitarian protection, or leave under the Afghanistan resettlement schemes or the Ukraine resettlement schemes who have a child/children from before they arrived in the UK.

They may also have a positive effect in fostering good relations between people, as Social Security Scotland have a commitment to accessible communication to support those whose first language is not English. Social Security Scotland staff may also have the opportunity to understand more about the difficulties faced by people who belong to minority ethnic groups who may rely on these benefits.

The latest analysis of client diversity and equalities data^[42] shows that for approved SCP applications between December 2020 and May 2021, 89% (26,725) were from people who identified as white, 4% (1,185) as Asian, 2% (525) as African, 1% (215) as Mixed or multiple ethnic groups, less than 1% (30) as Caribbean or Black, and 1% (255) as other ethnic group. This analysis also shows that for approved BSF and Best Start Grant applications in the same period, 90% (13,060) were from people who identified as white, 4% (520) as Asian, 2% (225) as African, 1% (100) as Mixed or multiple ethnic groups, less than 1% (15) as Caribbean or Black, and 1% (130) as other ethnic group.

In Scotland, 5% of the adult population belong to minority ethnic groups.^[43] Within the population of children registered for Early Learning & Childcare in Scotland, 8.9% have a home language other than English.^[44]

The Scottish Government's Race Equality Framework^[45] states that tackling poverty is a priority for the Scottish Government across all communities, and that the clear link between race and poverty must be tackled. In 2015-20 people from non-white minority ethnic groups were more likely to be in relative poverty, with poverty rates at 41% for 'Asian or Asian British' ethnic groups, and 43% for Mixed, Black or Black British and Other' ethnic groups. This compares to 18% amongst the 'White British group'.^[46] One report from Close the Gap^[47] highlights the intersectionality between race and gender and concludes that 'BME women continue to face high levels of racism, racial prejudice, discrimination and bias in the labour market which ultimately impacts their ability to secure, retain and progress within sustainable, good employment'. There are also a far higher proportion of children from a minority ethnic group in relative poverty, at 38% compared to 24% of all children.^[48] As a result, certain minority ethnic groups are more likely to be eligible for a qualifying benefit and thus benefit from the FFP. They are also more likely to disproportionately benefit from the increase in the value of SCP and the extension to the eligibility criteria for SCP to include children aged 6 to 15 years old.

Ethnicity correlates with family size. At the UK level, 51% of Black African, 65% of Pakistani and 64% of Bangladeshi children live in large families (three or more children), compared to 30% of those in White British families.^[49] Larger families are more likely to experience poverty and are identified as one of the priority groups in the Tackling Child Poverty Delivery Plan.^[50] As a result, they are more likely to qualify for FFP and there are no limits on the number of children they can claim for, increasing the likelihood that they will be able to claim a higher amount of support.

We are aware that there are particular barriers faced by ethnic minorities in claiming benefits, especially those with English as a second language. To address this, work has been undertaken with ethnic minorities alongside the main Experience Panels. This work has given us a depth of information about the barriers faced by this group, and ideas for how Social Security Scotland can address these barriers as set out in our Benefit Take-up Strategy.^[51] Our commitment to accessible communication includes making sure that we do not create barriers for people who communicate in languages other than English by offering the application form in other languages. As well as English, Social Security Scotland automatically creates all its promotional materials in seven languages – Farsi, Polish, Mandarin, Cantonese, Arabic, Gaelic and Urdu. The materials will also be translated into any other language upon request. There are also interpretation, and translation services available in over 100 languages. These steps are to ensure that all ethnic groups have a positive experience applying for the FFP, promoting good relations, and have equal opportunities to access their entitlements.

It is anticipated that introducing auto-award for elements of Best Start Grant will remove barriers for claimants, including those with English as a second language, making it easier to access their entitlement. Additionally, auto-award has the potential to help people who are not aware of their entitlement.

SCP was introduced through secondary legislation, using the powers to top up a reserved benefit contained in Section 79 of the Social Security (Scotland) Act 2018. This decision was taken as it was the quickest and simplest route to introduce the payment and therefore help tackle child poverty. Primary legislation would have delayed introduction of the payment, potentially by two or three years. The decision to proceed using the Section 79 power means that eligibility for SCP is based upon receipt of a qualifying reserved benefit.^[52] While the ability to deliver the payment quickly was viewed to be critical, given the urgency of tackling child poverty, this has placed some restrictions on eligibility, including for those with no recourse to public funds.

Those with no recourse to public funds cannot receive a qualifying, reserved benefit and are therefore not eligible for SCP. This is a reserved benefits matter and, therefore, not within the Scottish Government's powers to address.

However, as those aged under 18 do not require a qualifying, reserved benefit to be eligible for BSG, we have sought and received agreement from the UK Government that for BSG Pregnancy and Baby Payment, individuals who are under 18 and have no recourse to public funds are able to receive support. Furthermore, we have plans to extend BSF eligibility to children aged under three, with British citizenship, and whose parent or guardian meets the financial eligibility criteria but do not have a qualifying benefit due to having no recourse to public funds. In the meantime, equivalent payments are being made. The financial eligibility criteria is a family income of £660 or less per month after tax. The Home Office has confirmed that they have no plans to add BSF to their list of public funds and payments to parents or guardians of children with British citizenship will not breach their 'no access to public funds' condition.

Providing an exception to the general rule that an individual is only entitled to the higher Pregnancy and Baby Payment when they are applying in respect of their first child for individuals granted refugee status, humanitarian protection, or leave under the Afghanistan resettlement schemes or the Ukraine resettlement schemes who have a child/children from before they arrived in the UK, will provide greater support for families who are more likely to be starting from scratch. Stakeholder feedback indicates that women who arrive in Scotland, who are placed with little access to anything, will benefit.

Gypsy/Traveller

Within the broader classification of ethnic minority, just over 4,000 people in Scotland (0.1% of the population) identified their ethnic group as 'White: Gypsy/Traveller'. Generally, Gypsy/Traveller households were more likely to contain dependent children (36% compared to 26% of the population as a whole) and they were three times more likely to contain 'three or more' dependent children.^[53]

We have conducted user research with members of the Gypsy/Traveller community to understand more about the barriers towards claiming the FFP and how they might be overcome. They made us aware of the potential barriers relating to digital access and the importance of trusted relationships, including a preference towards their own translation service. In addition, they highlighted the importance of trusted welfare rights organisations and local services to the community, they also expressed a preference towards letters, as this allows them to keep a record of correspondence and share with the relevant advice organisations if required.

We are working to engage with this community further, to explore ways that we can maximise take-up. This includes work that Social Security Scotland are taking forward with experts who have experience of benefit take-up in specific communities, with a view to targeted take-up activities and produce take up resources, as well as supporting stakeholders and frontline staff with take-up activities. It is anticipated that introducing auto-award for elements of Best Start Grant will making it easier for the Gypsy/Traveller community to access their entitlement.

Religion or belief

The changes that we are making will positively affect people belonging to religious groups and may help to advance equality of opportunity by providing greater financial support to eligible parents and carers of children and making it easier to receive the support that they are entitled to without the need to apply.

They may also have a positive effect in fostering good relations between people, as Social Security Scotland staff may also have the opportunity to understand more about the difficulties faced by people who belong to certain religious groups who may rely on these benefits.

Statistics show that some religious groups are more likely to be in relative poverty than others - 52% of Muslims, 19% of Roman Catholics, 19% of other Christian groups, 15% of Church of Scotland - compared to 18% of all adults.^[54] As a result, certain groups are more likely to be in receipt of a qualifying benefit, making them eligible to receive the FFP.

It is anticipated that some religious groups, who are more likely to be living in poverty, will benefit from the increase in value of SCP and the extension to SCP to include children aged 6 to 15 years old.

Stakeholders have told us that stigma around applying for benefits may be an issue within some religious communities and so flexibility around how people apply is fundamental. Religious groups often receive information about services and support via their religious community and we will work with these groups to ensure information is made available.

The automation of ELP and SAP awards was also seen by stakeholders as a way in which this stigma could be addressed.

Pregnancy and maternity

The changes that we are making will positively affect people who are or have recently been pregnant and may help to advance equality of opportunity by providing greater financial support to eligible persons in this situation. We will also be providing greater support to certain pregnant persons and parents/carers of a baby who already have a child who are more likely to be starting from scratch, without the items that the BSG Pregnancy and Baby Payment is intended to provide. The changes we are making to BSG and BSF will also provide support to more individuals who are responsible for a child through formal surrogacy arrangements.

They may also have a positive effect in fostering good relations between people, as Social Security Scotland staff may also have the opportunity to understand more about the difficulties faced by people who are or have been pregnant who may rely on these benefits.

Households with children aged 0-4 are at high risk of poverty, but the risk is much higher when the youngest child is aged less than one year old. Families with a new child are more likely to enter poverty, even when controlling for other factors.

Research from 2015 found a quarter of 'new families' are in poverty in the year after having their first child.^[55] This could be due to the increased costs of a new child and the need to take time off work to care for them. For new lone parents (most often women), this figure was much higher. For these reasons, households with a young child are a priority group in the Tackling Child Poverty Delivery Plan.^[56]

Stakeholders highlighted that pregnancy and the first year of a child's life are a high risk time when domestic abuse can intensify. Women, whose earnings are often limited when pregnant, often have no financial means to leave home when they are experiencing abuse.

Providing new exceptions to the general rule, that an individual is only entitled to the higher Pregnancy and Baby Payment when they are applying in respect of their first child, will provide greater support for pregnant persons and parents/carers of a new child in the following situations, who are more likely to be starting from scratch without the items that the Pregnancy and Baby payment is intended to provide:

• individuals granted refugee status, humanitarian protection, or leave under the Afghanistan resettlement schemes or the Ukraine resettlement schemes who have a child/children from before they arrived in the UK;
• individuals who took on responsibility for a child/children who was not their own when that child/children was more than 12 months old; and
• individuals who have been forced to leave their home with a child/children due to domestic abuse.

Widening the meaning of surrogacy for BSG and BSF will ensure that all individuals who are responsible for a child through formal surrogacy arrangements can be classed as having responsibility for the child.

Marriage and civil partnerships

The Scottish Government does not require assessment against this protected characteristic unless the policy or practice relates to work, for example HR policies and practices – which this policy does not.