Social Security (Scotland) Act 2018: progress report 2023 to 2024

1. Foreword

Since establishing Social Security Scotland in 2018 we’ve established a radically different system built on dignity, fairness, and respect – co-designed with people who are receiving benefits. One of the many reasons our system is so different is that we have been clear from the outset that social security is a fundamental human right. It is an essential collective investment in Scotland’s wellbeing, offering vital support - which any one of us could need at any time in our lives - and that is why we are so proud to have invested so strongly in it.

In 2023-24, the Scottish Government provided £5.2 billion in financial support through payments made by Social Security Scotland and under Agency Agreements with the DWP. This investment supported over 1.2 million people in Scotland and is approximately £800 million more than the UK Government gave to the Scottish Government for social security.

By the end of the 2023-24 reporting year, thanks to record Scottish Government investment, Social Security Scotland was delivering 14 different benefits, seven of which are available only in Scotland. We also uprated all devolved social security benefits by at least 6.7% in 2023-2024, in line with inflation, including those payments where annual up-rating is not currently a legal requirement. Equally importantly, we have at every stage designed our system to make it as easy as possible for people to access the Scottish Government benefits they are entitled to, aiming to maximise take-up and make sure money ends up in the pockets of all who are eligible.

This progress report therefore provides an update on implementation for the reporting year 1 April 2023 to 31 March 2024, focusing on the policy aspects for which the Scottish Government has a particular role and duty to report. The report sits alongside Social Security Scotland’s own comprehensive progress report covering operational delivery.

A key landmark in the reporting year was the introduction of the Social Security (Amendment) (Scotland) Bill on 31 October 2023, providing for a range of improvements to various devolved social security processes and policies based on the essential Social Security Principles enshrined in the Social Security (Scotland) Act 2018. These improvements are focused on delivering value for money and improving client experience.

In November we introduced Carer Support Payment, which replaced Carer’s Allowance in Scotland. The benefit launched in pilot areas and provides income for unpaid carers in recognition of their role and its impact on their lives and ability to take on paid work. Significantly, the benefit is available to many full-time students who are currently unable to get Carer’s Allowance – removing barriers to education and widening access to 1,500 more carers once the benefit is available nationally. Later this month, Carer Support Payment will be available nationally, following completion of the phased rollout across Scotland.

In February this year we widened eligibility for Best Start Foods by removing the income thresholds for all qualifying benefits, so that thousands more pregnant women and families with children under the age of three, could access support to buy milk and healthy food. This aligns eligibility for this important benefit more closely with Best Start Grant and Scottish Child Payment. The total value of our Five Family Payments benefits, which include the Best Start Grant and Scottish Child Payment, is now over £10,000 by the time a family’s first child turns 6 and around £25,000 by the time an eligible child turns 16.

In March we announced Scottish Adult Disability Living Allowance which will replace Disability Living Allowance for adults in Scotland. We expect to introduce this and begin case transfer from the Department for Work & Pensions in Spring 2025.

Meanwhile of course, we are continuing with our programme to introduce further benefits to provide additional and crucial support to people across Scotland

Just last month, we launched the Pension Age Disability Payment pilot, replacing Attendance Allowance in Scotland for people over the State Pension age. This payment will provide assistance to help mitigate additional care costs incurred by disabled people and will be reported on in detail in next year’s edition of this progress report

The UK Government announced in July 2024 its decision to move away from a universal Winter Fuel Payment and to restrict entitlement to those in receipt of Pension Credit and other means-tested benefits from this winter. Following careful consideration of the options available for Scotland, the Scottish Government made the difficult decision to replicate this decision in Scotland. The timing of the UK Government announcement has meant it is not practicable for the Scottish Government to deliver Pension Age Winter Heating Payment, our replacement for the UK Government’s Winter Fuel Payment, in winter 2024-25 through Social Security Scotland. It will be delivered in Scotland this winter by the Department for Work & Pensions on behalf of the Scottish Government. It will then be delivered by Social Security Scotland from winter 2025.

There is of course more delivery still to come, but the significant achievements made so far and the positive impacts which our investment decisions are having are clearly set out in this detailed annual progress report, which I warmly welcome.