Social Security Assistance in Scotland: up-rating for inflation in 2026 - 2027

Foreword

We know that people are continuing to struggle with rising prices. That is why it is vital that we ensure the financial support provided by social security payments maintain their value, avoiding any decline in their purchasing power. As a Government we recognise this, which is why I was proud when we extended the legal obligation to annually increase all benefits delivered under the Social Security (Scotland) Act 2018 in line with inflation.

This report, as in previous years, sets out the impact of inflation on Scottish social security payments and confirms the Scottish Governments intentions to address that impact in 2026-27. Each form of assistance has been adjusted to consider the rate of change in prices in the economy using the recognised measure of inflation – the 12 month rate of the Consumer Prices Index (CPI) – for September 2025.

Each year, we strive to go further and I am delighted to see our Scottish social security system continuing to evolve and improve to meet the needs of the people of Scotland. Following the enactment of the Social Security (Amendment) (Scotland) Act 2025, work has begun on the implementation of a range of improvements to various processes and policies, helping to further enhance client experience and provide value for money.

Social Security Scotland continues to successfully roll out new benefits with Scottish Adult Disability Living Allowance introduced in March 2025, replacing Disability Living Allowance for adults in Scotland. In the first six months, payments totalling £33.9 million have already been made.

This winter, Pension Age Winter Heating Payment is expected to provide support to at least 880,000 pensioners to help with heating bills for those of state pension age and with an individual income below £35,000 per year.

Further improvements are planned in the near future. Extra support for those caring for more than one person will be available in the form of the new Carer Additional Person Payment and Scottish Carer Supplement which replaces, for most carers, the Carer’s Allowance Supplement. These new forms of assistance will be paid alongside Carer Support Payment as part of an enhanced overall package of Carer Support from March 2026.

The continued investment in social security, providing much needed support to those most vulnerable in our society, reflects our relentless determination to address inequality and poverty in Scotland.

Shirley-Anne Somerville

Cabinet Secretary for Social Justice