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

Policy impacts

It is expected that each of the priority groups identified in the TCPDP will benefit from the proposed amendments to FFP regulations. The changes are also expected to have a positive impact upon socioeconomic inequality. We expect that the increased Scottish Child Payment of £25 could lift 50,000 children out of poverty, reducing overall child poverty by an estimated 5 percentage points in 2023/24.^[10]

Lone parents

We know that lone parents (who are predominantly women) ^[11] and households where only one adult works are at a higher risk of poverty: the poverty rates are highest for single women with children (38%).^[12] Welfare reforms at the UK level have been a significant driver of increased child poverty in single parent families.^[13]

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.^[14] Meanwhile, single adult families with children accounted for a larger proportion, 72%, of all families with children claiming Universal Credit across Great Britain.^[15] 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.

Secondary analysis of published Best Start Foods statistics up to 28 February 2022^[16] provides some insight into the reach of the benefit in relation to lone parents. 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.

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.

Disabled people

The latest analysis of client diversity and equalities data^[17] 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. For approved applications for BSF and BSG within the same period, 17% (2,415) 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.^[18] 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.^[19]

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 have life limiting conditions as SCP will pay an extra amount in the unfortunate situation where a child to whom a claim relates dies.

Families with more than three children

The TCPDP identifies large families as a priority group with 32% of children in households with at least three children in relative poverty.^[20] The FFP can be expected to benefit large families as there is no limit to the number of children the payment can be claimed for. User researchers tested the form with larger families, ensuring it was accessible and met their needs. Increasing the value of SCP will mean large families receive a greater amount of support and extending the age limit means SCP will reach more large families than under current rules, as these families are more likely to have children between 6 and 15.

It is anticipated that introducing auto-award for elements of Best Start Grant will making it easier for larger families to access their entitlement.

Minority ethnic groups

The Scottish Government's Race Equality Framework^[21] 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'.^[22] 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.^[23] 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 extension to the eligibility criteria for SCP to include children aged 6 to 15 years old.

The latest analysis of client diversity and equalities data^[24] 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.

The language barriers that those in minority ethnic groups may encounter have been considered: 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. These steps are all 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.

Individuals 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 with no recourse to public funds who are under 18 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 a new 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 from before they arrived in the UK, will provide greater support for families who are more likely to be starting from scratch.

Families with a child under one

34% of families where the youngest child is under a year old lived in relative poverty in 2017-20.^[25]

We introduced the SCP early for eligible families with children under 6. This decision to pay under 6s early was made as it is expected to have a positive impact on tackling child poverty and is targeted action at those families that need it most: in 2015-18, 58% of children living in relative poverty were in a household with at least one child under six years old.^[26]

The BSG Pregnancy and Baby Payment can be applied for, in most circumstances, up until a child turns six months and therefore provides targeted support for parents with a child under one.

BSF provides support for families with a child under three, with a higher rate of payment being made from birth until a child turns one to support breastfeeding mothers or help with the costs of providing first infant formula milk.

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 with a young 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:

• an individual granted refugee status, humanitarian protection, or leave under the Afghanistan resettlement schemes or the Ukraine resettlement schemes, who has 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 was more than 12 months old
• individuals who have been forced to leave their home with a child/children due to domestic abuse

Widening the meaning of surrogacy and kinship care for BSG and BSF and removing the condition that the child is not looked after by the local authority in residential care for BSG will ensure that more individuals who are responsible for a child under one will be able to access the BSG Pregnancy and Baby Payment and higher rate of BSF.

Mothers under 25

The Scottish Government's Pregnancy and Parenthood in Young People Strategy^[27] 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 it is expanded to all eligible children under 16 years of age.

The latest analysis of client diversity and equalities data^[28] 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.

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.