Minimum Income Guarantee early steps deliverability paper

Appendix B: Ending the parenting penalty within Universal Credit: summary of the impacts of each option against key areas.

Option 1: SCP applicant applies to Social Security Scotland and provides evidence to verify childcare costs

Applicant

Positive: applicant receives additional childcare payment

Negative: applicant will have to provide information and verification to two government departments

Policy

Positive: will meet Policy intent of 100% of childcare costs (within maximum limit) being paid

Social Security Scotland / Scottish Government

Negative: will require significant additional admin resource to process applications

Negative: will require significant additional admin resource to verify eligibility/documentation

DWP

Not applicable

Legislation

Positive: based on current understanding this option can be delivered using current “top up” powers (Scottish Child Payment)

Data

Not applicable

Technology

Negative: significant changes will be needed to existing IT systems

Risks

Negative: will require significant additional operational resource

Negative: significant changes will be needed to existing IT systems with associated costs and timelines

Negative: lack of reliable third-party data increases fraud risk that Social Security Scotland may not feel is sustainable

Opportunities

Positive: can be delivered under current powers

Positive: can be built on existing Scottish Child Payment service

Option 2: Applicant applies to Social Security Scotland and DWP shares data to verify childcare costs

Applicant

Positive: applicant receives additional childcare payment

Negative: applicant has to apply to Social Security Scotland for additional childcare payment

Policy

Positive: will meet Policy intent of 100% of childcare costs (within maximum limit) being paid

Social Security Scotland / Scottish Government

Negative: will require additional admin resource to process applications

DWP

Negative: will require changes to DWP data sharing processes

Legislation

Positive: based on current understanding this option can be delivered using current “top up” powers (Scottish Child Payment)

Data

Negative: will require updated data sharing agreements with DWP

Negative: will require additional data sharing processes with DWP

Technology

Negative: significant changes will be needed to existing IT systems

Risks

Negative: will require agreement and joint working with DWP

Negative: will require additional operational resource

Negative: significant changes will be needed to existing IT systems with associated costs and timelines

Negative: places additional burden on applicant

Opportunities

Positive: can be delivered under current powers

Positive: can be built on existing Scottish Child Payment service

Option 3: DWP share data with Social Security Scotland and they auto-award childcare costs

Applicant

Positive: applicant receives additional childcare payment

Negative: applicant has to apply to Social Security Scotland for additional childcare payment

Policy

Positive: will meet Policy intent of 100% of childcare costs (within maximum limit) being paid

Positive: will maximise take up

Social Security Scotland / Scottish Government

Negative: will require additional admin resource to process applications

DWP

Negative: will require changes to DWP data sharing processes

Legislation

Positive: based on current understanding this option can be delivered using current “top up” powers (Scottish Child Payment)

Data

Negative: will require updated data sharing agreements with DWP

Negative: will require additional data sharing processes with DWP

Technology

Negative: significant changes will be needed to existing IT systems

Risks

Negative: will require agreement and joint working with DWP

Negative: will require additional operational resource

Negative: significant changes will be needed to existing IT systems with associated costs and timelines

Opportunities

Positive: can be delivered under current powers

Positive: can be built on existing Scottish Child Payment service

Positive: opportunities to minimise operational resource through automation

Positive: minimal burden on applicant