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Welfare Reform (Further Provision) (Scotland) Act 2012 - Annual Report - 2017

Official Print Publication Date
Website Publication DateJune 29, 2017


Laid before the Scottish Parliament by the Scottish Ministers under section 4(2) of the Welfare Reform (Further Provision) (Scotland) Act 2012
29 June 2017

ISBN 978 1 78851 071 4 (Web only publication)
PPDAS 266237

This document is also available in pdf format (1.5 MB)


An errata was published on 26th October 2017 at pdf page 24, Table 3 heading and pdf page 70, final paragraph changed to From April 2012.

The pdf and html have both been updated within the document to reflect these changes.


Executive Summary

1. Introduction
1.1 Purpose of the report
1.2 Key features of the report
1.3 Key provisions in the Welfare Reform Act 2012
1.4 Limitations of the report
1.5 Key changes in UK government welfare policy since June 2016

2. UK government welfare reforms
2.1 Overview of welfare policy since 2010
2.2 Uprating measures announced in the 2010-15 parliament
2.3 Non-uprating measures announced in the 2010-15 parliament
2.4 Measures announced in the 2015-2017 parliament

3. Financial impacts of welfare measures
3.1 Expected and actual savings from selected welfare measures
3.2 Financial impact of welfare measures at a GB level
3.3 Financial impact of welfare measures at a Scotland level
3.4 Number of households affected by welfare measures passed in the 2015-17 parliament.

4. Local Authority level impacts of latest welfare measures
4.1 Methodology...
4.2 Financial Impact of 2015-17 reforms at a local authority level
4.3 Impact of Personal Independence Payment by local authority

5. Impact of welfare reforms on equality groups
5.1 Gender
5.2 Disability
5.3 Other protected characteristics
5.4 Summary

6. Impact of welfare reform on income inequality and poverty
6.1 Income Inequality
6.2 Poverty and Child Poverty

7. Scottish Government mitigation
7.1 Total mitigation funding for 2017/18
7.2 Council Tax Reduction
7.3 Discretionary Housing Payments
7.4 Scottish Welfare Fund
7.5 Mitigation of the removal of Housing Benefit from 18-21 year olds (UC)

8. Assessment of low income benefit measures
8.1 Universal Credit
8.2 Tax Credits/UC - limit to 2 children and removal of the Family Element
8.3 Conditionality and sanctions
8.4 The Benefit Cap
8.5 Benefit freezes and changes to uprating
8.6 Social Fund

9. Assessment of disability and incapacity benefit measures
9.1 Personal Independence Payments
9.2 Employment and Support Allowance

10. Assessment of housing related benefit measures
10.1 Bedroom Tax
10.2 Local Housing Allowance
10.3 The LHA cap for social sector tenants
10.4 Removal of Housing Benefit for 18-21 year olds (UC)
10.5 The impact of welfare reform on tenants, housing associations and local authorities

Technical Annexes (A - C)

Annex A - Methodology Summary - Scottish and GB level impacts

Annex B - Methodology Summary - Local Authority Impacts

Annex C - Methodology Summary - Number of Households Affected


List of figures and tables

List of figures

Figure 1: Actual and Forecast UK welfare spending compared to a 2010-11 baseline
Figure 2: Welfare Spending Trends as Nominal cost, Real cost and as share of GDP
Figure 3: Reductions in Social Security spending (GB-level) from Coalition and Conservative government policy
Figure 4: Reductions in Social Security spending (Scotland-level) from Coalition and Conservative government policy
Figure 5: Expected Savings divided by the number of households affected by Conservative welfare measures
Figure 6. Occupancy Rating by Ethnic Group, Scotland (source: Census 2011)
Figure 7: Change in real household BHC and AHC income between 2016-17 and 2021-22 by percentile point (Source: IFS)
Figure 8: Long-run impact of planned tax and benefit reforms by income decile and household type (Source: IFS)

List of tables

Table 1: Significant welfare measures that reduced welfare spending introduced in the 2010 - 2015 parliament (including those in the Act)
Table 2: Significant welfare measures that reduced welfare spending introduced in the 2015 - 2017 parliament
Table 3: Actual and forecast spending in 2015/16 (GB level) compared to the OBR baseline (£ millions)
Table 4: Conservative government welfare measures - impact at a UK level
Table 5: Conservative government welfare measures - impact at a Scotland Level
Table 6: Number of Households Affected by Post-2015 Policies
Table 7: Reduction in welfare spending (£millions) from Conservative government measures by 2020/21 by local authority
Table 8: Financial impact of the introduction of PIP by local authority, 2020/21
Table 9: Outcome of DLA reassessments for PIP in Scotland (April 2013 to October 2016)
Table 10: Number and proportion of successful mandatory reconsiderations (reassessments and new claims)
Table 11: Scottish Government Funding: Mitigation and Tacking Poverty Measures
Table 12: DHP Funding in Scotland (2013-2017)
Table 13: Sanctions on individuals in each month as a proportion of caseload (%) for JSA, ESA, IS and UC
Table 14: Number of Households capped under the new cap by Local Authority