Estimating fraud and error in the Scottish social security system: Consultation

5. What are we seeking views on?

Sections 87B-E of the 2018 Act make provision for regulations that will further specify details of the requests made for audit information.

Circumstances where Scottish Ministers could ask for a written response to an information for audit request

Some benefits can be verified quickly using straightforward factual information, such as confirmation of pregnancy or receipt of a DWP benefit. Other - such as disability benefits or Carer Support Payment - rely on detailed, up‑to‑date information about a person’s daily living needs, mobility, or caring responsibilities. In these cases, Social Security Scotland needs to gather information directly from clients to ensure entitlement decisions reflect their current circumstance.

Information‑gathering methods for each case will be selected on a case‑by‑case basis, taking account of what is already known about the individual and any new details they provide. The aim will always be to use the most appropriate and supportive approach while meeting audit requirements and ensuring the data is valid.

Because complex information may need to be gathered quickly, the preferred methods are phone calls, video calls, or where necessary, in‑person discussions - taking into account any individual communication needs and the existing right to have support to respond.

If these options are not suitable or fail, clients may instead be asked to provide written responses or submit documents such as identification or birth certificates.

Question 1: Do you agree or disagree that a written response should be required where other methods - face to face, telephone, or video - have been considered and are not appropriate?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 2: Do you agree or disagree that a written response should be required where official documents e.g. a passport, birth certificate or supporting evidence, are required to verify a fact?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 3: Do you think there are any other circumstances where a written response would be appropriate ?

Yes/ No/ Don’t know

If Yes please give details.

Categories of individual who are not to be requested to provide information

Section 87B(5) of the 2018 Act allows Scottish Ministers to make regulations excluding certain people from being asked for information for auditing purposes, either from the outset or once they are identified as falling within a specified category. Random sampling is essential for statistically robust results, so exclusions must be limited. The proposed exemption criteria below are designed to strike a balance between providing accurate fraud and error estimates, and unduly burdening individuals with reviews.

We propose the following categories of award are exempt from review:

Category 1: Recent Determination (within the last 3 months)

A determination, redetermination, or tribunal decision has been made about entitlement in the last 3 months. Reasons:

• The person has recently provided information.
• Prevents repetitive requests in a short period.

Category 2: Individual has already provided information for audit within last 12 months (for any benefit)

The individual’s case has recently been selected within a sample for audit and they have provided information in the last year.

Reasons:

• The person has recently provided information and entitlement has been checked.
• Prevents repetitive requests in a short period.

Category 3: Entitlement Under Active Review

A fraud investigation is ongoing or Scottish Ministers are already considering whether a determination without application is required.

Reasons:

• Regulations requiring a scheduled review are already engaged.
• An appeal is active at the First Tier Tribunal or Upper Tribunal.
• Another review of entitlement is already underway.
• Avoids overlap, confusion, or delay between processes.

Category 4: Entitlement Due to Be Considered Within 3 Months

An award is due to reach its scheduled review date within 3 months triggering a review under relevant regulations.

Reasons:

• A review is already imminent, and asking for information now would be unfair and unnecessary.
• Prevents overlapping processes.

Category 5: Suspended or Nil Rated Awards

• Individual has an entitlement but payments are suspended; or
• Benefit is reduced to nil due to hospital stay, residential care, or legal detention and that is not likely to change within timescales of the audit exercise; or
• Benefit criteria are met but individual cannot be paid because the individual receives another benefit which overlaps with it e.g. Carer Support Payment and State Pension.

Reasons

• Scottish Ministers are already resolving an issue related to entitlement or safeguarding.
• Requesting information would be impractical or inappropriate.
• Scottish Ministers are not actively paying the benefit so there is no financial exposure.

Question 4: Do you agree or disagree with the proposal that individuals whose benefit had a r ecent determination (within the last 3 months) should not be required to provide fresh information for audit?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 5: Do you agree or disagree with the proposal that an individual who has already provided information for audit within last 12 months for any benefit should not be required to provide fresh information for audit?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 6: Do you agree or disagree with the proposal that an individual whose entitlement to a benefit is already actively under review should not be required to provide fresh information for audit?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 7: Do you agree or disagree with the proposal that an individual whose entitlement to a benefit is due to be considered within the next 3 months should not be required to provide fresh information for audit?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 8: Do you agree or disagree with the proposal that an individual who is entitled to benefit but is not receiving any payments because it has been suspended or nil rated should not be required to provide fresh information for audit?

Agree/Disagree

If you disagree please give reasons for your answer.

Question 9: Are there any other categories of individual you think should not be required to provide fresh information for audit that have not been identified in the proposed categories?

Yes/No/Don’t know

If yes please give details.

Period within which someone can ask the Scottish Ministers to withdraw a request for information

As the process of gathering information and carrying out an audit has multiple complex stages, timescales for collecting, analysing and publishing annual government statistics are strictly timetabled - slippage must be avoided wherever possible.

In this case it is anticipated that the information gathering stage (stage 2) of the exercise must be completed within a three month window after selection, to allow for data validation, quality assurance, and compilation of results before the official publication deadline.

Where a person’s award has been selected, they will have the right to ask to be removed from the sample and for the request for information to be withdrawn. The Scottish Ministers will only do so if they decide that the individual has a good reason.

Social Security Scotland will consider each case on its own merits, and if the request is not withdrawn, the individual will then be given further opportunities and support where needed to provide the information.

To ensure that appropriate audit data can be gathered in a timely manner, a careful balance needs to be struck between ensuring individuals have enough time to consider the request and ask for it to be withdrawn, and ensuring that enough time is left to complete the exercise if that request is rejected.

We propose that the regulations specify the individual will have a period of 14 days (two calendar weeks) from the date of the request for information, to ask that Social Security Scotland withdraw the request. Where an individual requires additional support, this timeframe may be extended by a reasonable period to ensure fairness and accessibility.

Question 10: Do you agree or disagree that 14 days (two calendar weeks), which may be extended where there are additional support needs, is sufficient time within which to request that the request for information be withdrawn?

Agree/disagree

If you disagree please give reasons for your answer.

Period within which the Scottish Ministers must decide whether there is good reason to withdraw their request, and what will happen if the decision is not made within the prescribed period. The regulations should clearly state how long Social Security Scotland has to decide whether there is a good reason for someone to withdraw a request. This is important so that people know what to expect and to ensure the audit process remains fair and transparent.

Stage 2 of the audit will need to move quickly, as staff may be reviewing over a thousand cases in a short timeframe. It is also important that people who ask to withdraw a request receive a decision without unnecessary delay. The time limit therefore needs to balance making timely decisions with the practical demands of reviewing a large volume of cases.

We propose that the regulations require Social Security Scotland to make a decision within 28 days (four calendar weeks). If no decision is made in that time, Scottish Ministers must write to the client to confirm that the request for them to provide information is withdrawn.

Question 11: Do you agree or disagree that 28 days (four calendar weeks) is a reasonable timeframe for Social Security Scotland to respond to a request to withdraw a request for information?

Agree/disagree

If you disagree please give reasons for your answer.

Approach to Impact Assessments

Sections 87B-E of the 2018 Act were already subject to an Equalities Impact Assessment ^[5], Fairer Scotland Duty Impact Assessment ^[6], Business and Regulatory Impact Assessment ^[7], Islands Impact assessment ^[8] Child Rights and Wellbeing Impact Assessment ^[9] through the introduction of Part 7 of the 2025 Act.

Relevant impact assessments will be carried out as part of the development of the regulations. This will help ensure that the information for audit powers are fair, accessible and inclusive, and that the process is proportionate. It will also help identify and address any unintended effects at an early stage.

We expect the audit process to affect only a very small number of people receiving benefits from Social Security Scotland, selected at random. However, each benefit is aimed at specific groups with particular needs. For this reason, we have identified that the following impact assessments are likely to be required:

Equalities Impact Assessment

An Equalities Impact Assessment (EQIA) considers how a policy might affect different people. It assesses whether people with the protected characteristics of age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership could be unfairly disadvantaged and helps make sure decisions are fair and inclusive.^[10]

Question 12. Can you think of any impacts on people with protected characteristics that could result from our proposals, that we should consider?

Yes/No/Don’t know

If yes, please describe the impacts we should consider

Childs Rights and Wellbeing Impact Assessment

A Child’s Rights and Wellbeing Impact Assessment (CRWIA) assesses how a policy may affect children and young people. It considers whether their rights, wellbeing, and best interests are being upheld, and whether any groups of children could be negatively affected. The assessment helps identify and reduce potential harms, improve outcomes for children, and ensure that children’s views and needs are properly taken into account.

Question 13. Can you think of any impacts on children and young people that could result from our proposals, that we should consider?

Yes/No/Don’t know

If yes, please describe the impacts we should consider

Island Communities Impact Assessment

An Island Communities Impact Assessment (ICIA) looks at how a policy may affect people living in island communities in Scotland. It helps identify whether island areas could be impacted differently from mainland communities, taking into account challenges such as remoteness, access to services, cost of living, transport, and sustainability. It ensures that the needs and circumstances of island communities are properly considered and that decision making supports fair, resilient, and sustainable island living.

Question 14. Can you think of any impacts on island communities that could result from our proposals, that we should consider?

Yes/No/Don’t know

If yes, please describe the impacts we should consider

Fairer Scotland Duty Impact Assessment

A Fairer Scotland Duty Impact Assessment looks at how a policy may reduce or increase inequalities of outcome caused by socio‑economic disadvantage. It helps us consider the needs of people experiencing poverty, low income, deprivation, or unequal access to opportunities. The assessment ensures socio‑economic impacts are considered early and meaningfully.

Question 15. Can you think of any socio-economic impacts that could result from our proposals, that we should consider?

Yes/No/Don’t know

If yes, please describe the impacts we should consider

We do not anticipate that there are any significant impacts on business or consumers and therefore do not propose to carry out the following assessments:

Business and Regulatory Impact Assessment - Business and Regulatory Impact Assessments (BRIAs) are used to assess the costs, benefits and risks of any proposed primary or secondary legislation or policy changes that may have an impact on the public, private, third sector or regulators.

Consumer Duty Impact Assessment - Consumer Rights Assessments looks at how a policy may affect consumers and service users. It helps ensure that decisions support good consumer outcomes, including clear information, affordability, choice, and fairness.

Question 16. Do you agree that there are no likely business or regulatory impacts resulting from our proposals?

Agree/Disagree

If you disagree, please describe the impacts you think we need to consider.

Question 17. Do you agree that there are no likely impacts on consumers resulting from our proposals?

Agree/Disagree

If you disagree, please describe the impacts you think we need to consider.