Social Security (Amendment) (Scotland) Bill: child rights and wellbeing impact assessment - updated April 2025

CRWIA Stage 2 – Assessment of Impact and Compatibility

What evidence have you used to inform your assessment? What does it tell you about the impact on children’s rights?

Evidence from stakeholders / policy colleagues

The proposals included in the Bill have been developed in close collaboration with a range of internal Scottish Government stakeholders, including:

• Social Security Policy Division
• Scottish Government Legal Directorate
• Care Experience and Whole Family Wellbeing Division
• Mental Health and Incapacity Law Division
• Communities Analysis Division

A public consultation ‘Scotland’s social security system – enhanced administration and compensation recovery’^[19], which informed the Bill ran from 4 August to 27 October 2022 and sought views on any potential impacts that the proposals may have on children’s rights and wellbeing. The consultation document was made also made available in an easy-read format^[20], and responses were accepted by whatever method respondents preferred. 34 responses were received and those have been published where the appropriate permissions were provided.^[21]

A range of associated public engagement events took place during the same period and an online workshop was co-facilitated with Disability Equality Scotland to gather the views of their members. An independent analysis of consultation responses was undertaken by external consultants EKOS^[22] and published by the Scottish Government on 31 March 2023.^[23]

The feedback from the public engagement events was supplemented by further research undertaken by the Social Security Experience Panels and Client Panels teams with their members. This research took the form of focus groups, interviews and a survey to explore members’ views on topics included within the consultation.^[24]

Four organisations in the public and third sector provided further information on the impact of the proposals on children’s rights and wellbeing. Feedback from the respondents highlighted the positive impact of the proposals on increasing access to, and take-up of, social security assistance as a way to help tackle child poverty.

Citizen’s Advice Scotland stated in their consultation response that the proposals had the potential to advance the commitments made in the Bright Start, Bright Futures: Tackling Child Poverty Delivery Plan, including in “addressing challenges that areas of long ingrained poverty become trapped in” and “making it easier to access the support available”.

A recognised limitation of the public consultation was that very few responses were received from stakeholders in the legal and insurance sectors with an interest in the policy about compensation recovery. The Scottish Government sought to engage with potentially impacted stakeholders, who may have experience of the UK compensation recovery scheme, to gain insight and further scope out the design of the new scheme.

A targeted engagement event with stakeholders from the insurance and personal injury industry was held in March 2023. The purpose of this virtual event was to communicate the proposal and provide reassurance that the Scottish Government’s preferred approach to the recovery of social security assistance is one which offers consistency across both UK and Scottish Governments.

A public consultation was not conducted on the provisions about information for audit of the social security system. The Scottish Government is clear that this provision is high priority, fundamental to the functioning of the Scottish social security system and aligns with the practice of other government departments. Stakeholder engagement will inform the processes used to capture information for audit to ensure that they are clear, user-friendly and accessible. Further engagement will be undertaken and further impact assessments developed as regulations are developed and prior to operational implementation. At Stage 2 provisions were amended into the Bill that Scottish Ministers must consult publicly before making regulations under section 87B(5) on the categories of individuals who are not to be requested to provide information.

Views were not sought on the proposal about re-determinations beyond the period allowed as the need for this provision emerged after the public consultation during policy development. To seek input from stakeholders on this proposal, Scottish Government requested written feedback and offered an engagement session with public and third sector organisations.

A series of meetings were also hosted by Scottish Government officials to consider the impacts and benefits of the re-determinations provisions (withdrawing a re-determination request and allowing re-determinations requests beyond a calendar year in exceptional circumstances). These were held with various stakeholders including Scottish Women’s Convention; Blesma; Scottish Association for Mental Health; The Action Group; and Inclusion Scotland amongst others. These meetings were held in small groups and were designed to seek views on the proposed amendments and identify any barriers that people who seek to challenge a decision may have on families, children and young people.

Evidence from children and young people

While there has not been direct engagement in relation to the Bill specifically with children and young people, engagement has taken place with organisations who work with and represent children, young people and their families. Several of the evidence sources which have been considered include the views and experiences of children and young people.

Organisations that work with children, young people and families that participated in the consultation process and with whom engagement has taken place that has informed policy development include: Child Poverty Action Group; The Promise Scotland; One Parent Families Scotland; Save the Children; The Action Group and Scottish Women’s Aid.

The proposals in the Bill have been developed in a collaborative way, taking into account the views of a wide range of stakeholders. The Scottish government recognise the value of consulting children and young people directly, as well as through representative organisations and will continue to explore further engagement opportunities during the passage of the Bill and prior to implementation. The proposals in the Bill aimed at improving client experience are rooted in the values of providing children, young people and their families with dignity, fairness and respect.

Children under 3 In the Children’s Parliament report What Kind of Scotland?,^[25] poverty is identified as the most important barrier to a good life. It affects children day to day, in terms of practical things like having enough food to eat and a house that is warm, but also because children can notice the stress money concerns cause the adults at home.

As part of the formation of the CRWIA for the first Tackling Child Poverty Delivery Plan,^[26] the Poverty and Inequality Commission identified themes, which were developed through consultation with children and young people facilitated by the Children’s Parliament, Young Scot and the Princes Trust, into recommendations including:

• Social Security: put more money towards benefits;
• Improve quality of life by providing greater support to those affected by poverty; and
• Increase incomes and reduce costs to support with: the cost of the school day; the cost of travel; and activity expenses.

Several of the provisions included in the Bill will contribute to the second recommendation of improving quality of life by providing greater support to those affected by poverty.

Of the 13 forms of assistance currently delivered by Social Security Scotland, eight are intended for people who are on a low income. People who use the services of Social Security Scotland are therefore more likely than the wider population to be living on a low income and affected by poverty.

The appeals and re-determinations provisions aim to contribute to the second recommendation by increasing flexibility and choice for people challenging a decision on their benefit entitlement, and by ensuring that people have re-determination and appeal rights in relation to a decision following a change in their circumstances for a later period. These proposals build on a rights-based approach for those engaging with social security and enact continuous improvement. Whilst children under 3 will not be the ones challenging a benefit decision, they will be indirectly impacted by these changes if their parents, guardians or representatives are accessing social security, and these proposals aim to offer increased clarity and understanding to clients and stakeholders in the existing challenge process.

The proposal to introduce formal challenge rights for overpayment liability similarly contributes to the second recommendation by offering people who are entitled to social security assistance and have been found liable for an overpayment the right to challenge this decision. The objective of this proposal is to embed consistency throughout the whole process of challenging liability, and ensure that people have a formal route to dispute liability for an overpayment where they feel it is appropriate to do so. This is consistent with Social Security Scotland’s ethos of treating individuals with fairness, dignity and respect at all times.

Children under 3 will not be the ones to challenge the overpayment liability decision but they could be indirectly impacted by this provision if their parents, guardians or representatives are accessing social security and found liable for an overpayment. This policy intends to offer greater clarity for clients and aims to align the overpayment liability decision challenge process with the existing process in place for challenging entitlement determinations by introducing the right to appeal. It should be noted that the overpayment liability decision is not a determination because determinations are about entitlement.

The proposal to make an appointee liable to account to the individual for any mismanagement of the individual’s property will ensure that any child who is not being cared for by somebody with parental rights and has an appointee in place, is offered the same protections as the Children (Scotland) Act 1995 offers to children with other types of representatives.

Young carers Young Carer Grant (YCG) is a payment that can be applied for annually by young carers aged 16, 17, and 18 who care for someone who is normally paid a qualifying disability benefit.

In December 2022, the estimated number of young carers aged 4-17 in Scotland was around 28,000.^[27] In the 2022-23 financial year, 4,470 applications were received for YCG, with 85 re-determinations requested during this time. The Scottish Government does not hold sufficient data on which age bracket is more likely to request a re-determination, but YCG applications are higher for 16 and 17-year-olds than 18-year-olds.^[28]

The re-determinations and appeals provisions will directly impact young people who wish to challenge a decision on their benefit entitlement by affording further flexibility and choice, which will have a positive effect on a group of people who may have challenging priorities. We know that young carers can invest a substantial amount of time and energy into looking after a family member, and may not have enough time for themselves, which can ultimately have an impact on physical and mental well-being and cause added stress.^[29] This finding has been confirmed in Social Security Experience Panels research.^[30]

These proposals will allow young carers to have further autonomy by empowering young people to challenge a decision made about their entitlement to benefits with greater flexibility and choice in a way which works best for their personal circumstances. They could therefore lead to improved outcomes for young carers in terms of well-being and access to social security assistance.

Young parents

A report from the Women’s Budget Group has found that overall, women are more likely to rely on social security than men.^[31] Additionally, the Scottish Government’s Young People Strategy highlights that young mothers are more likely to be reliant on state benefits and tax credits than older mothers.^[32]

The Scottish Government is aware that young people can lack awareness of the benefits available to them and a negative experience can put them off engaging further with social security services.^[33] The way in which services are accessed and delivered when help is needed can have a huge impact on the dignity of families experiencing poverty, where facing complex difficulties can make accessing support harder, and could increase a sense of distrust in public services.^[34] The re-determinations and appeals provisions included within the Bill will increase access to the challenge rights process and could help very young pregnant people, ensure that young parents have further autonomy when disputing entitlement to a devolved benefit, and help facilitate increased confidence in the challenge process overall.

For people accessing Scottish social security benefits, the challenge rights process has been designed with users in mind, with a range of application channels for children and young people who may wish to request a re-determination or make an appeal. This could be over the phone, by paper application, as well as online for disability benefits. These inclusive options are important to allow the young person to apply in whatever way best meets their specific needs. The Scottish Government recognises that some people need additional support to apply due to digital exclusion, disability, or difficulty in communicating.

Young people who have a disability

As of 31 July 2023, 4,150 (4%) of registered ADP applications were made by people between the ages of 16-18.^[35] ADP is the replacement for Personal Independence Payment (PIP) and Disability Living Allowance for adults in Scotland. Following a phased pilot, ADP launched nationally on 29 August 2022. Following this national launch, people are now directed to apply for ADP instead of Personal Independence Payment if they live in Scotland. People living in Scotland who get PIP will have their benefit transferred to Social Security Scotland. As of July, 277,764 people were claiming Personal Independence Payment in Scotland, of whom 3,269 (1%) were aged between 16 and 19.^[36]

There will be re-determination requests and applications for appeals arising about entitlement to CDP. Parents or guardians of disabled children can apply for this benefit when a disabled child is under 16, and this payment aims to provide financial assistance for daily care and mobility needs. Once it has been determined that a child is eligible for CDP, the benefit can be paid up until their 18^th birthday. From July 2021 to June 2023, 42% of applications for CDP had been made for children aged 5-10, whilst 31% were made for children aged 11-15, and 26% were made for children aged 0-4. As of June 2023, 67,000 children and young people were in receipt of CDP.^[37]

Once a child reaches the age of 16, they are considered a young person with legal capacity. Young people aged 16 and over are generally expected to manage their own entitlement to Child Disability Payment including receiving payments and challenging decisions about their entitlement. If the young person cannot manage their own entitlement after they become 16, Social Security Scotland must consider whether an appointee is required to receive disability assistance on behalf of the young person.

While children under 16 who are receiving CDP may not directly interact with the challenge process, as their benefit will be administered by a parent or guardian, they will be positively impacted by the re-determinations and appeals provisions in the Bill that aim to embed further flexibility, access and choice for clients who are disputing a CDP award.

The purpose of the policy to recover social security assistance from compensation awards is to address the issue that currently injured parties receive both compensation payments as well as Scottish social security assistance to mitigate for the same loss from an accident, injury or disease.

In addressing this issue, children and young people who have received CDP as a result of the negligence of a liable third party will no longer be ‘doubly compensated’. This action will revert the approach to compensation recovery to the status quo prior to the devolution of certain social security powers, providing consistency across the UK.

Data provided by the DWP was used to forecast the number of cases where amounts of CDP would be recovered from compensation payments. Initial estimates suggest there may be between 10 and 30 cases per year of CDP recovered. Once the compensator and injured person have reached settlement and the amounts owed are repaid to Scottish Ministers, the proposed provisions will have no further impact on the Scottish social security assistance received from that date onwards.

Children in low income families

SCP is a weekly payment for parents or carers on low incomes who have a child under 16. As of 30 June 2023, 316,190 children aged 0-15 years were actively benefitting from SCP^[38]. Although children under 16 do not receive SCP directly, and therefore do not interact with the challenge process, they may be positively impacted by the proposals to introduce further flexibility and choice in the challenge process.

The provisions on recovering social security assistance from compensation recovery will have an indirect impact on children and young people whose parents, guardians or representatives are in receipt of SCP as a result of an illness or injury caused by a negligent party. This proposal ensures that people are not paid twice or ‘doubly compensated’ for the same injury, accident or disease and that there is a consistent approach across the UK.

Although there is not a direct equivalent of SCP in the UK system, the child element of Universal Credit could be considered as a comparison and is recoverable under the Social Security (Recovery of Benefits) Act 1997. Data was obtained from DWP to help forecast the number of cases where SCP would be recovered from compensation awards. Initial estimates suggest that there may be 70 to 205 cases per year of SCP recovered from compensation awards. As previously mentioned after settlement has been reached and the amounts owed for the relevant period repaid to Scottish Ministers, the proposed provisions will have no further impact on the Scottish social security assistance received from that date onwards.