Social Security (Scotland) Act (2018): Devolved Social Security Assistance, Uprating for Inflation - A report in fulfilment of section 86A: Duty to consider effects of inflation

8. Carer’s Allowance Supplement Statement

8.1 As Carer’s Allowance has the lowest rate of all working age benefits, the Carer’s Allowance Supplement was designed to increase Carer’s Allowance to the level of Jobseeker’s Allowance. The supplement is an interim measure until the Scottish Government is delivering Scottish Carer’s Assistance in full under the powers in the Social Security (Scotland) Act 2018.

8.2 Section 81 of the Social Security (Scotland) Act 2018 provides a formula for determining the rate of Carer’s Allowance Supplement by calculating the difference between the weekly rate of Carer’s Allowance and Jobseeker’s Allowance. To ensure the support provided through the Supplement is protected as prices change, Section 81 provides for the amount of Jobseeker’s Allowance used in this calculation to be uprated for inflation, while also taking into account any actual changes in the rate of Jobseeker’s Allowance since the introduction of the Supplement. This means that since the introduction of Carer’s Allowance Supplement in 2018, the Jobseeker’s Allowance rate used for its calculation was uprated with inflation despite the actual rate of Jobseeker’s Allowance remaining frozen at 2015-16 prices under the UK Government benefit freeze policy until April 2020.

8.3 As no legislation is required to uprate Carer’s Allowance Supplement, Scottish Ministers are to publish a statement before the start of each new tax year, explaining how inflation has been calculated for this purpose. It is appropriate to include this statement within this report.

8.4 For 2023-24, Scottish Ministers have chosen to uprate the 2022-23 bi-annual rate of Carer’s Allowance Supplement of £245.70 by the annual rate of CPI to September 2022 of 10.1%, to £270.50. This is equivalent to a weekly rate of £10.40 when rounded to the nearest 5p.

8.5 Uprating the weekly Job Seeker’s Allowance rate used in last year’s calculation of Carer’s Allowance Supplement (£79.15) by the annual rate of CPI to September 2022 of 10.1%, produces £87.15 (to the nearest 5p). Compared with the 2023-24 rate of Carer’s Allowance (£76.75) this is a weekly difference of £10.40, a (10.05%) rise from the £9.45 weekly Carer’s Allowance Supplement rate set in 2022-23. To ensure that the bi-annual payment fully increases in line with inflation (10.1%), a further 10p has been added so that is rises from £245.70 to £270.50 (rather than £270.40 (£10.40 x 26)).