Scotland Act 2016 implementation: tenth annual report

7. Social Security

Part 3 of the Scotland Act 2016 contains 14 Sections relating to social security and employment support.

The Scottish Government is responsible for implementation in respect of these powers, ensuring the safe and secure transition of the benefits being devolved to Scotland and the design of new benefits as part of a Scottish social security system with dignity, fairness and respect at its heart. To achieve this the Social Security Programme was established and a new agency, Social Security Scotland, was created.

Social Security Scotland operates in accordance with the eight principles set out in the Social Security Charter and Social Security (Scotland) Act 2018. This sets the framework to ensure that the Scottish social security system meets the needs of Scottish citizens.

Social Security Scotland is now successfully delivering eighteen benefits and will have provided support worth over £6.7 billion in 2025-26, when around 2 million people were expected to be in receipt of payments.

Costs

75. The costs set out in Table 7.1 have been updated following last year’s report. Social Security Scotland includes a range of administration and operational costs to support the delivery of payments and services. The work that the Scottish Government undertakes, including the Implementation Costs of the Social Security Programme, is funded from the Advice, Policy and Programme budget line within the Scottish Government’s Social Justice Portfolio.

76. A detailed breakdown of costs can be found in the Social Security Programme Business Case, published in February 2023. These costs reflect the necessary changes resulting from the pandemic, including an additional year added to the Programme to support safe and secure benefit delivery and case transfer for around 700,000 clients from DWP to Social Security Scotland, as well as adding the Scottish Child Payment extension into the Programme and providing increased functionality for our most complex benefits.

2025-26 Developments

77. At the end of March 2026, the Social Security Programme closed following successful roll-out of 18 benefits. This has been the largest delivery programme and transfer of powers under devolution since the original settlement as set out in the Scotland Act 1998. Using a combination of agile and waterfall methodology, the Programme has successfully managed a highly complex schedule of benefit implementation, created the infrastructure – including a new Scottish Government agency, Social Security Scotland – to deliver a brand new public service, co-designed with the people who use it and based on the foundational principles of treating people with fairness, dignity and respect.

The Social Security (Scotland) Act 2018

78. The over-arching framework for use of the Scottish Government’s Social Security powers is set out in the Social Security (Scotland) Act 2018. The rules relating to individual benefits are set out in regulations made under enabling powers in the 2018 Act. In 2025-26, regulations have been made covering changes to Pension Age Winter Heating Payment ahead of being delivered through Social Security Scotland, as well as changes to Carer Support, introducing Carer Additional Person Payment and Scottish Carer Supplement, which replaces Carers Allowance Supplement.

Social Security Scotland

79. Social Security Scotland was established to deliver on Scottish Ministers’ obligations under the 2018 Act and the Agency delivers its services in accordance with the eight principles set out in the Act and a Social Security Charter. The Agency is founded on the values of treating people with dignity, fairness and respect.

80. In November 2025, Social Security Scotland published its annual Client Satisfaction Survey, covering the period from April 2024 to March 2025, which showed that people continue to have a very positive experience of Social Security Scotland. 77% of people responding to the survey said their overall experience was ‘very good’ or ‘good’; and 91% of people who had been in touch with a member of staff at Social Security Scotland reported that they had been treated with kindness.

81. Social Security Scotland directly employed 4,152 Full Time Equivalent staff across its various sites as at 30 September 2025^[14]. It delivered almost £6 billion of benefit payments in 2024-25; £2.2 billion through Agency Agreements and over £3.7 billion directly. Further details of this spending are provided in Social Security Scotland’s Annual Report and Accounts for 2024-25^[15], which were published in November 2025, in accordance with statutory timescales.

82. With the launch of Carer Additional Person Payment in March 2026, Social Security Scotland’s service has now expanded to eighteen separate benefit payments, eight of which are entirely new forms of financial support available only in Scotland. Social Security Scotland will continue to build capacity and capability with a focus on efficiency in as it prepares for the launch of further Scottish Government benefits.

Benefits Launched

83. Further improvements to Scottish carer benefits were introduced in March 2026. Carer Additional Person Payment was launched for those caring for multiple people – worth over £500 per year per additional cared for person. Carer’s Allowance Supplement was replaced with Scottish Carer Supplement which is paid alongside Carer Support Payment instead of twice yearly so carers get extra support more regularly and consistently. The Scottish Government has extended support when a caring role ends due to bereavement from 8 to 12 weeks, providing more stability at a very difficult time for carers. The Scottish Government also removed the requirement for carers to have been providing a certain number of weeks of care before they can be paid during a temporary break from caring.

84. Payments began in November 2025, delivered through Social Security Scotland, for our Pension Age Winter Heating Payment. The key aim of this benefit is to mitigate some of the impact of additional domestic heating costs in winter by providing reliable financial support to people of pension age with an income of £35,000 or less, who are more vulnerable to cold temperatures due to their age and therefore have a greater need for household heating. From winter 2025 onwards, all pensioners will generally receive £203.40 or £305.10 per household, depending on age. The payment will provide support to pensioners most in need with over 880,000 people estimated to benefit from the payment this winter (2025-26), following payment recovery from those with an income above £35,000.

Case Transfer

85. In line with its commitment, the Scottish Government completed the case transfer process for around 730,000 disability and carer benefit awards. This means every disabled person and carer in the country who received Disability Living Allowance, Personal Independence Payment, Attendance Allowance or Carer's Allowance from the Department for Work and Pensions are now receiving their benefits from Scotland’s social security system. Completing the transfer of disability and carer benefits on time and on budget was a significant milestone in the devolution of social security.

Other Policy Developments

86. The Scottish Government up-rated all Scottish social security payments by 1.7% in April 2025. This included payments where there was a statutory requirement, as well as those where up-rating was discretionary. However, from May 2025, this statutory duty to up-rate was extended to include all social security payments delivered under the Social Security (Scotland) Act 2018.

Future Plans

87. The Scottish Government published the response to the Independent Review of Adult Disability Payment (ADP) on 19 February 2026, representing another significant milestone in the ongoing transformation of Scotland’s social security system. Led by Edel Harris OBE and informed by extensive engagement with disabled people and representative organisations, the final report of the Review was published in July 2025.^[16]

88. Recognising that disabled people will want to see improvements as early as possible, several recommendations started to be delivered within three months of the response being published. These include strengthening trauma-informed practice, expanding research with seldom heard groups, and enhancing staff training. Recommendations to change eligibility criteria will require further policy development, consultation and detailed cost analysis before any decisions can be made on them. This is essential to ensure any changes can be implemented safely and sustainably, while delivery of existing benefits is not put at risk.

89. The Scottish Government remains committed to replacing the Industrial Injuries Disablement Scheme with Employment Injury Assistance (EIA) in Scotland. The existing benefit was introduced more than 75 years ago, and successive UK Governments have not updated it significantly. So that EIA best meets Scotland’s needs, the Scottish Government is prioritising longer-term reform. This was backed by the largest number of responses to our consultation in 2024. We established the Employment Injury Assistance Steering Group in June 2025 to provide expert input to help address the unique complexities associated with replacing the Scheme. We expect the Group’s final report and recommendations in summer 2026.

90. In January 2026, the Scottish Government announced plans to introduce an additional payment for families with children under 1 that receive the Scottish Child Payment. The new payment will bring the total amount paid for eligible under‑1s to £40 per week. Subject to Parliamentary approval, payments will commence in 2027-28. The Scottish Fiscal Commission estimate that around 12,000 children will receive this increased support once the payment is delivered, with full year costs estimated to be around £7 million for 2028-29.