Scottish Welfare Fund: statutory guidance - April 2025

1. Introduction

1.1 The Scottish Welfare Fund (SWF) is a scheme, underpinned by law^[1],[2] and delivered by all 32 local authorities. It aims to provide a safety net to people on low incomes by the provision of Crisis Grants and Community Care Grants.

1.2 The Welfare Funds (Scotland) Act 2015 (“the Act”) places a statutory responsibility on each local authority to maintain a Welfare Fund^[3]. The Act also gives powers to Scottish Ministers to make regulations and publish guidance, setting out how these funds should be administered. The Welfare Funds (Scotland) Regulations 2016 (“the Regulations”) and this guidance have been subject to public consultation (between 27 May 2015 and 21 August 2015). Local authorities should note the statutory nature of this guidance and their responsibility to have regard to it, as required by the Welfare Funds (Scotland) Act 2015 and the Welfare Funds (Scotland) Regulations 2016.

1.3 Following an Independent Review into the Scottish Welfare Fund by Ipsos Scotland^[4] the Scottish Government produced an action plan^[5]. This has led to the establishment by Scottish Government in 2024 of a standing Statutory Guidance Review Committee made up of representation from the Convention of Scottish Local Authorities (COSLA), local authorities, the Scottish Public Services Ombudsman (SPSO), Scottish Prison Service (SPS) and the third sector. Members of the Poverty Alliance Get Heard Scotland Citizen Panel also inputted with suggestions for the Scottish Welfare Fund and the development of this revised guidance. The guidance is reviewed annually and issued by Scottish Ministers under Section 6 of the Act.

1.4 It is important to recognise that local authorities have extensive discretion over how the scheme is delivered in their area, from taking and processing applications to fulfilment of grants. This allows the scheme to be tailored to specific local needs. In addition, by making the point of access close to communities, local authorities are better able to provide a holistic service – making links across services and local organisations.

1.5 This guidance does not seek to cover all scenarios; rather it aims to provide a framework for decision making in order to promote consistency. The absence of guidance on a particular situation does not necessarily mean that a grant should be refused. Where discretion is exercised, it should align to the objectives of the SWF as set out in paragraph 2.1. At all times, local authorities must ensure applicants are treated with respect, and their dignity is preserved^{[6] [7].}