The Welfare Foods (Best Start Foods) (Scotland) Amendment Regulations 2023: business and regulatory impact assessment

Costs

The SFC^[21] have forecast the financial impact of removing the income thresholds which is set out in the table below:

Table 1 – impact on BSF benefit expenditure of removing the income thresholds

Impact on BSF benefit expenditure

• 2023-24: £0.1 million
• 2024-25: £3 million
• 2025-26: £6 million
• 2026-27: £6 million
• 2027-28: £6 million
• 2028-29: £6 million

For the remaining changes proposed, there are no significant financial implications associated with the creation of regulations to achieve the stated policy aim. The additional expenditure resulting from these changes is estimated to be approximately £130,000 in 2024-25, but this figure will decrease slightly in future years as clients transition from legacy benefits to Universal Credit.

As with any government investment the money spent on the proposed amendments could be invested elsewhere. However, additional government expenditure on removing the income thresholds for BSF is expected to increase the number of people eligible for financial support by around 20,000.^[22] Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions and rising food prices disproportionately hurt those on the lowest incomes.