Social Security (Scotland) Act (2018): Devolved Social Security Assistance, Uprating for Inflation - A report in fulfilment of section 86A: Duty to consider effects of inflation

1. Purpose

1.1 This report is published under section 86A^[1] of the Social Security (Scotland) Act 2018^[2] (‘the Act’) which requires Scottish Ministers to consider the effects of price inflation on all forms of assistance delivered under Chapter 2 of Part 2 or section 79 of the Act and to lay a report in the Scottish Parliament before the end of each financial year.

1.2 This report sets out the inflation-adjusted level of each relevant figure, explains how the inflation-adjusted levels have been calculated and states what the Scottish Ministers have done, or intend to do, in light of their calculations and their reasons for that decision.

1.3 The forms of assistance under the reporting duty in section 86A include:

1. Carer’s assistance (includes Young Carer Grant)

2. Cold-spell heating assistance

3. Winter heating assistance (includes Child Winter Heating Assistance)

4. Disability assistance (Child and Adult Disability Payment)

5. Early years assistance (Best Start Grant)

6. Employment injury assistance

7. Funeral expense assistance (Funeral Support Payment)

8. Housing assistance

9. Short-term assistance

10. Scottish Child Payment

1.4 Of the above forms of assistance, the Best Start Grant, Child Winter Heating Assistance, Funeral Support Payment, Young Carer Grant, Short-term assistance, Scottish Child Payment, Child Disability Payment and Adult Disability Payment have been delivered and are included in this report for consideration. The report is required to consider the change in prices since the previous report was laid before the Scottish Parliament on 5 December 2021.^[3]

1.5 This report also explains how the inflation-adjusted level of Carer’s Allowance Supplement has been calculated. Although this reporting is not required by the Social Security (Scotland) Act 2018, it is being provided to offer a fuller picture of all the assistance that is being delivered. Similarly, there will be reporting on other forms of assistance not covered by the 2018 Act such as Job Start Payment and Best Start Foods.

1.6 Finally, section 86B^[4] of the Social Security (Scotland) Act 2018 requires Scottish Ministers to bring forward legislation before the end of each financial year, to replace the payment amount in the regulations which is, in their opinion, materially below its inflation-adjusted level. All forms of carer’s assistance (including Young Carer Grant), disability assistance, employment injury assistance, and funeral expense assistance (now referred to as Funeral Support Payment) and Scottish Child Payment that are set out in devolved legislation are to be uprated to the inflation-adjusted level set out in section 86A. This means that for the financial year 2023-24 there is a requirement to uprate Funeral Support Payment, Carer’s Allowance Supplement, Young Carer Grant, Child Disability Payment and Adult Disability Payment. Scottish Child Payment was uprated to £25 per week, in November 2022. This action has met the duty to uprate for 2023-24.

1.7 The Scottish Government is committed to embedding the eight Scottish social security principles in Section 1 of the Social Security (Scotland) Act 2018 into the policy making process. The approach to uprating, in particular, is intended to reinforce the principles that:

• social security is an investment in the people of Scotland;
• social security is itself a human right and essential to the realisation of other human rights;
• the Scottish social security system is to contribute to reducing poverty in Scotland and
• opportunities are to be sought to continuously improve the Scottish social security system in ways which— i) put the needs of those who require assistance first, and ii) advance equality and non-discrimination.