Compensation queries Social Security Scotland: FOI release

Information requested

Request for information 1:

I refer to the Stage II complaint response issued by Social Security Scotland (CE1MUI931264/25), in which it is stated that: “Social Security Scotland has no policy or scheme in place for offering compensation.”

In order to understand whether this statement is accurate, supported by policy and consistently applied, please provide the following information:

Copies of any policies, guidance, internal instructions, decision-making frameworks or operational documents that relate to:

• compensation;
• financial redress;
• discretionary payments;
• consolatory payments;
• remedies following maladministration;
• or remedies following upheld or partially upheld complaints.

Request for information 2:

Confirmation of whether Social Security Scotland has any policy, scheme or guidance (current or historical) that permits financial redress, discretionary payments, or other remedies where a claimant has suffered:

• direct financial loss;
• distress or inconvenience;
• or injustice as a result of maladministration.

Request for information 3:

If Social Security Scotland maintains that it “has no policy or scheme in place for offering compensation”, please confirm:

• whether this position is documented in any policy, guidance or instruction; 
• and if so, provide a copy of the document that formally establishes this position.

Request for information 4:

For each of the last three financial years, the number of cases in which Social Security Scotland has:

• offered any form of financial redress, discretionary payment, consolatory payment or other remedy following a complaint or error;
• or refused a request for redress on the basis that no policy or scheme exists.

Request for information 5:

Copies of any guidance provided to complaint handlers on how to respond to requests for compensation, financial redress or remedies arising from alleged maladministration.

Response

Request for information 1, 2 and 3:

Social Security Scotland are an Agency within the Scottish Government. As such, we follow guidance contained within the Scottish Public Finance Manual. This permits us to make discretionary ex gratia payments, which are payments for which we have no legal obligation to pay (see Losses and Special Payments, point 27).

We may consider making an ex-gratia payment if our action or inaction resulted in a client experience which did not match our values or commitments, and caused financial loss, gross inconvenience or severe distress.

For further details, please see the attached policy document – Ex Gratia Compensation Policy. Please note that this document is a working draft currently undergoing final review and approval. It is provided in response to your FOI request, but its content may change prior to formal publication. 

Request for information 4:

The number of discretionary payments made by Social Security Scotland following a complaint or error for each of the past three financial years is as follows:

• 2022/2023: 0
• 2023/2024: 8
• 2024/2025: 3

Request for information 5:

Please find attached three internal process and guidance documents for ex gratia payments.

• Ex-Regulatory & Ex Gratia Payments
• Client Experience Alternative Payment Process - flow chart
• Alternative Payments Ex-Regulatory & Ex Gratia Payments - flow chart

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.

FOI 202500499775 - Information released - Annex

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