Scotland Moves Away from the UK in Social Security Policy ESPN Flash Report 2018/72
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Scotland moves away from the UK in social security policy ESPN Flash Report 2018/72 JONATHAN BRADSHAW AND FRAN BENNETT – EUROPEAN SOCIAL POLICY NETWORK DECEMBER 2018 commitment to introducing an “income Since World War II, Description supplement”. the UK social security system has been Since World War II, the core social Secondly, Scotland has a different largely UK-wide. After security system in the UK (both approach to benefits in practice. devolution in 1999, for insurance and assistance) has been Initially, the differences were modest; a time this broadly based on UK-wide legislation and but they have increased considerably remained true. But regulation delivered by central over time. Thus, in Scotland, Scotland is now government civil servants. The benefits prescriptions are now free of charge (as diverging from the were the same throughout the UK – i.e. in Wales and Northern Ireland), Westminster in Great Britain (England, Wales and whereas in England help is only government’s policies Scotland) as well as Northern Ireland. available following a means test (and in three ways: in the Local councils (municipalities) only had for some specific groups on other principles on which the responsibility for delivering (but not grounds). Scotland (and Wales) never social security system regulating) housing benefit and council abolished the means-tested Educational and anti-poverty tax benefit. Even in Northern Ireland, Maintenance Allowance for young policies are based; in which had its own Parliament and civil people staying on at school and has the mitigation of service, the policy was to maintain effectively abolished the “bedroom tax” “welfare reforms” and parity with Great Britain. Now, following (or “abolition of the spare room other changes to devolution of some powers in this area subsidy” for social tenants on housing benefits; and in the to Scotland, the governance of social benefit, as the Westminster governance of the security is changing. government describes it). Under the social security system. First, the Social Security (Scotland) Act Scotland Act 2016, some powers in relation to payment of universal credit 2018 recognises social security as a human right and states: “respect for the have been devolved to the Scottish dignity of individuals is to be at the government, which has taken advantage of this to introduce twice- heart of the Scottish social security system” and “social security is an monthly payment and direct payment of investment in the people of Scotland”. the element for housing costs to landlords by default. It bases social security provision on 7 principles, including these. The Child Scotland is now often also more Poverty (Scotland) Act 2017 re– generous. For example, the Scottish LEGAL NOTICE introduced statutory targets Government has used the Scotland Act (abandoned by the Westminster This document has been 1998 to make discretionary housing prepared for the European government) and reporting, and a payments to compensate for benefit Commission. However, it delivery plan was published which cuts (as local authorities elsewhere reflects the views only of the stated that “poverty is fundamentally have done). When parts of the authors, and the Commission about lack of income”. In addition to cannot be held responsible discretionary Social Fund were localised for any use which may be compensation for benefit cuts, some as local welfare assistance and the made of the information new benefits have been introduced or funding cut in England, Scotland contained therein. changed in Scotland and there is a maintained a national level Scottish Welfare Fund and backed it with involves key stakeholders in extra resources. Council tax designing the legislation on social Further reading benefit is now “council tax security, setting up “Experience Child Poverty Action Group in reduction” in Scotland. Panels” of people who have used Scotland (2018), Welfare reform: the social security system. It is the impact on families in Scotland Now the Scottish Government has developing a social security new powers to top up UK social Child Poverty Action Group in charter, setting out what people security payments and create new Scotland (2016), Poverty in can expect from the system in benefits. There is a Cabinet Scotland 2016: Tools for clear language, which includes Secretary for Social Security (not Transformation, Child Poverty Action consultation. Its powers over “welfare”); a Social Security Group employment support will also be Committee in the Scottish used to develop a new, voluntary, Patrick, R. (2018), What we can Parliament; a new Scottish approach to such provision. learn from Scotland’s approach to Government Social Security social security, blog 38 for Social Directorate; a new Social Security Outlook & Policy Association: Agency; and a new independent http://www.social-policy.org.uk/50- scrutiny body to hold Scotland’s commentary for-50/scotland-social-security/ social security system to account So far, the results are modest; and Scottish Government (2018a), (the Scottish Commission on Social Scotland will have control over only Every Child, Every Chance: The Security). In addition, a new 11 benefits and 15% of social Tackling Child Poverty Delivery Plan statutory Poverty and Inequality security spending. Universal credit 2018-22 Commission is being established to will be administered by Scottish Government (2018b), advise Scottish Ministers. Westminster. However, the new Annual Reform on Welfare Reform Best Start grants will replace Sure approach in Scotland can provide Start maternity grants. Grants for not just opportunities to evaluate Simpson, M., McKeever, G. and second and subsequent children different principles and provisions, Gray, A.M. (2017), Social Security Systems based on Dignity and will be restored; and new grants but also a good example for others Respect, Report for Equality and will be given for children at the wishing to reform social security Human Rights Commission: start of nursery and primary and anti-poverty policies. Change is being driven in part by the https://www.equalityhumanrights.c school. In addition, a new national om/en/publication-download/social- increasing awareness of the impact minimum school clothing grant has security-systems-based-dignity- on Scotland of austerity cuts in the been introduced. The Carers and-respect Allowance is being raised to the UK. A recent annual “welfare same level as jobseeker’s reform” report from the Scottish allowance. Different processes will Government said that the cuts Author be created to award benefits for imposed by the UK Government Jonathan Bradshaw (University of disability. will continue to reduce benefit spending: by 2020/21, annual York) and Fran Bennett Taxation is now also a devolved social security spending in issue to some extent. The Scottish Scotland is expected to have been Parliament has used this to vary reduced by £3.7 billion compared income tax rates and thresholds. with 2010. Thirdly, Scotland has a different approach to governance. It The Flash Reports are produced by the European Social Policy Network (ESPN) established in 2014 to provide the European Commission with independent information, analysis and expertise on social policies in 35 European countries. The topics covered are identified by ESPN experts in the light of significant developments in their countries, or in some cases suggested by the Commission or the Flash Reports’ editorial team (Eric Marlier, Slavina Spasova and Bart Vanhercke). The ESPN is managed by LISER (Luxembourg Institute of Socio-Economic Research), APPLICA and the OSE (European Social Observatory). More information on the ESPN: http://ec.europa.eu/social/main.jsp?catId=1135&langId=en. .