1. Introduction

GUIDANCE TO LOCAL AUTHORITIES – PANDEMIC SUPPORT PAYMENTS AUGUST 2021

1. INTRODUCTION

This guidance is to assist local authorities in delivering new Low Income Pandemic Payments announced as part of the 2021-22 Scottish Budget on 9 March 2021 and Scottish Child Payment Bridging Payments announced as part of the SNP 2021 Scottish Parliament election Manifesto. These payments comprise:

 A £130 Low Income Pandemic Payment (LIPP), to be paid to households by the end of October 2021 who are either: in receipt of Council Tax Reduction (CTR) or are within agreed groups exempt from Council Tax or who have no liability.  £520 to be paid in both 2021 and 2022 for each child in receipt of Free School Meals on the basis of low income. Payments are to be made quarterly aligning with the commencement of school holidays.

The previously announced Family Pandemic Payments and COVID Spring Hardship Payments form part of the £520 to be paid as Scottish Child Payment Bridging Payments in 2021 and have been incorporated into this guidance.

Resource to facilitate delivery of these payments in 2021-22 will be paid via a redetermination of General Revenue Grant in the last two weeks of March 2022 based on actual costs incurred for payments made and a fixed contribution to administration costs. Similar arrangements will be observed in 2022-23. Notional allocations have been confirmed to local authorities through correspondence.

This guidance is intended to support delivery of the above payments, and provides:

 background on the Pandemic Support Payments;  guidance for the Scottish Child Payment Bridging Payments;  guidance for the Low Income Pandemic Payment;  reporting templates for completion and return to the Scottish Government.

2. PANDEMIC SUPPORT PAYMENTS - BACKGROUND

Purpose

It is widely recognised that the impacts of the COVID pandemic have not been felt evenly across Scotland, with increased pressure on household budgets translating into increases in debt and food insecurity particularly for those on low incomes. Whilst restrictions are being eased, many households will continue to face increased challenges in meeting their basic needs in 2021-22 and beyond.

Whilst the Scottish Child Payment is now being delivered for children under the age of 6, the current timescale for delivery is that the payment will be rolled out to older children and young people by the end of 2022. Given the acute need among families immediate support has been agreed through new Bridging Payments, which build upon the approach taken to deliver payments during the pandemic. On this basis around 145,000 children and young people are anticipated to benefit from this support, almost two years ahead of the full roll out of Scottish Child Payment.

The Low Income Pandemic Payment is intended to provide additional financial support to people living on low incomes, helping to mitigate the impacts of the COVID pandemic and to build financial resilience, and in doing so tackle poverty and promote the wellbeing of people across Scotland.

The payments can be used by recipients as they see fit and there is no requirement or expectation that payments received are used for a particular purpose. Common uses may include purchasing essentials, such as food and fuel.

Delivery

Following the agreement of COSLA Leaders, local authorities will deliver the new Pandemic Support Payments on behalf of Scottish Ministers. This guidance has been drafted to help deliver these payments.

The Scottish Government has made available fixed level administration funding to support the delivery of both the Low Income Pandemic Payment and Scottish Child Payment Bridging Payments. Local authorities have been advised of their own funding allocation.

Funding for payments made, in line with this guidance, will be provided on a cost recovery basis through redetermination of the General Revenue Grant and paid to councils in March 2022. A similar process will be observed in 2022-23.

This funding will be made available under powers conferred on the Scottish Ministers by section 1A of the National Health Service (Scotland) Act 1978.

Local authorities, in delivering these new payments, should ensure compliance with GDPR regulations and review privacy statements as required.

3. SCOTTISH CHILD PAYMENT BRIDGING PAYMENTS

Summary

1. Local authorities will issue payments totalling £520 in both 2021 and 2022 for children and young people of school age [P1 – S6 education] in receipt of Free School Meals on the basis of low income eligibility criteria.

2. The total value of payments to be made in 2021 incorporates the £100 COVID Spring Hardship Payment, made at Easter 2021, and the £100 Family Pandemic Payment, made at summer 2021. The £100 Family Pandemic Payment to be made in winter 2021 is also incorporated in forthcoming payments.

3. Payments will be made quarterly for eligible children and young people in spring, summer, autumn and winter. The amounts for each payment are set out in this guidance.

4. Based on the number of COVID Winter Hardship Payments issued, which utilised the same eligibility criteria, it is estimated that around 145,000 children/young people will benefit from this measure.

Eligibility

5. Eligibility for Free School Meals has been identified as the means to identify those children/young people from low income households – therefore only those of school age [P1 – S6 education] who receive Free School Meals on the basis of low income or on local discretion to promote wellbeing are eligible.

6. To qualify children/young people need to have been registered for Free School Meals on the following dates in both 2021 and 2022:

a. Spring payment – on 2 February or subsequently register and are eligible for Free School Meals by the end of the School term prior to the Easter break. b. Summer payment – on 30 May or subsequently register and are eligible for Free School Meals by the end of the School term prior to the summer break. c. Autumn payment – on 23 September or subsequently register and are eligible for Free School Meals by the end of the School term prior to the October break. d. Winter payment - on 30 November, or subsequently register and are eligible for Free School Meals by the end of the School term prior to the Winter break.

7. Eligibility for Free School Meals based on low income is as follows:

a. A child/young person is eligible to receive Free School Meals, where the household is in receipt of: i. Universal Credit (where monthly earned income is not more than £625); ii. Income Support; iii. Job Seeker's Allowance (income based); iv. Employment and Support Allowance (income related);

v. support under Part VI of the Immigration and Asylum Act 19991.

b. A child/young person is also eligible to receive Free School Meals, where the household is in receipt of: i. Child Tax Credit, but not Working Tax Credit, and where the household income is less than £16,105; ii. both Child Tax Credit and Working Tax Credit and where the income is £7,500 or less.

c. A child/young person may qualify for Free School meals at local authority discretion if their household experience financial hardship. This could be because: i. their immigration status means they have no recourse to public funds. ii. they're still waiting on their first Universal Credit award notice.

8. Children/young people receiving Free School Meals based on universal provision (P1 – P3, extending to P4 from August 2021) are not eligible. Children receiving free lunches in Early Learning and Childcare settings are not eligible.

9. If a child is receiving universal provision and their family meets the eligibility criteria detailed above then local authorities should encourage those families to apply for these payments, with details on how they meet the qualifying criteria.

Delivery

10. Direct payment via BACS is encouraged with flexibility for alternate payment mechanisms to be used, such as PayPoint or equivalent.

11. Where a bank to bank payment is not possible and it is not possible to use an alternate payment method, a pre-payment card to the same value should be issued. However this should be by exception only. This pre-payment card should not be restricted to a particular retailer and should have the widest possible application – allowing households to use as they see fit.

12. The spring payment for qualifying children/young people should be made: a. prior to the end of the school term prior to the Easter holidays if they were registered for Free School Meals on 2 February. b. by the end of April if the request to register for Free School Meals was made after 2 February.

13. The summer payment for qualifying children/young people should be made: a. prior to the end of the school term prior to the summer holidays if they were registered for Free School Meals on 30 May. b. by the end of July if the request to register for Free School Meals was made after 30 May.

14. The autumn payment for qualifying children/young people should be made:

1 Asylum support: What you'll get - GOV.UK (www.gov.uk) 4

a. prior to the end of the school term prior to the October holidays if they were registered for Free School Meals on 23 September. b. by the end of the second week of November if the request to register for Free School Meals was made after 23 September.

15. The winter payment for qualifying children/young people should be made: a. prior to the start of the winter holidays if they were registered for Free School Meals on 30 November. b. by the end of the second week in January if the request to register for Free School Meals was made after 30 November

16. As of August 2021, the Spring 2021 and Summer 2021 payments have already been delivered. The Winter 2021 payment is inclusive of the £100 Family Pandemic Payment, therefore eligible children/young people are to receive one payment at the increased value of £160.

17. In order to manage expectations of those eligible, local authorities should make information available publicly on the proposed delivery timetable for payments. The table below can therefore be adapted for this purpose:

Payment Value Period of Date payment to be made eligibility Spring 2021 £100 2 February to Prior to the Easter holidays if (COVID Spring end of term registered for Free School Meals on 2 Hardship prior to Easter February. For registrations after this Payment) break date payments will be made by end of April. Summer 2021 £100 30 May to end Prior to the summer holidays if (Family of term prior to registered for Free School Meals on 30 Pandemic summer break May. For registrations after this date Payment) payments will be made by the end of July. Autumn 2021 £160 23 September Prior to the October holidays if to end of term registered for Free School Meals on 23 prior to September. For registrations after this October break date payments will be made by the second week of November. Winter 2021 £160 30 November Prior to the start of the winter holidays (Family to end of term if registered for Free School Meals on Pandemic prior to winter 30 November. For registrations after Payment + break this date payments will be made by the uplift) end of the second week of January. Spring 2022 £130 2 Feb to end of Prior to the Easter holidays if term prior to registered for Free School Meals on 2 Easter break February. For registrations after this date payments will be made by end of April. Summer 2022 £130 30 May to end Prior to the summer holidays if of term prior to registered for Free School Meals on 30 summer break May. For registrations after this date

payments will be made by the end of July. Autumn 2022 £130 23 September Prior to the October holidays if to end of term registered for Free School Meals on 23 prior to September. For registrations after this October break date payments will be made by the second week of November. Winter 2022 £130 30 November Prior to the start of the winter holidays to end of term if registered for Free School Meals on prior to winter 30 November. For registrations after break this date payments will be made by the end of the second week of January.

Reporting

18. Local authorities are required to report the final number of payments made under this measure, and the total value of payments issued, to the Scottish Government Tackling Child Poverty Unit via email to [email protected]. This should be reported, using the template provided, no later than:

a. 13 May for the spring payment b. 31 August for the summer payment c. 30 November for the autumn payment d. 31 January for the winter payment

19. Returns will enable funding to be provided to local councils through redetermination of the General Revenue Grant and Parliamentary scrutiny of this measure.

Treatment for tax and benefit purposes

20. DWP have considered the purpose of the payment against the definition of ‘local welfare provision’ in relevant legislation.2 On that basis, DWP have indicated that payments would be disregarded for the purpose of those benefit entitlements for which the legislation specifies that capital to be disregarded includes ‘any local welfare provision.’3 DWP have also indicated that the payments would have no impact on particular contribution-based benefits.4

21. DWP have indicated that payments will be treated as capital for the purpose of Universal Credit and may impact upon entitlement where the total capital held exceeds £6,000, either prior to or as a result of this payment. Further information on the treatment of capital for the purpose of Universal Credit can be found on the understanding Universal Credit website.

2 Regulation 2(1) of the Income Support (General) Regulations 1987, regulation 1(3) of the Jobseeker’s Allowance Regulations 1996, regulation 2(1) of the Employment and Support Regulations 2008, regulation 2(1) of the Housing Benefit Regulations 2006 and regulation 1(2) of the State Pension Credit Regulations 2002. 3 Income-related Employment and Support Allowance, Housing Benefit, Income Support, Income- based Jobseekers’ Allowance, and State Pension Credit. 4 New Style Jobseeker’s Allowance and New Style Employment and Support Allowance. 6

22. HMRC have indicated that payments would be disregarded as income for tax and benefit purposes.

23. Within the Council Tax Reduction system a crisis payment made by a local authority for the purpose of meeting a short term need is disregarded as income and capital of a person, where the payment is made using the local authority’s power to advance well-being5 and is using funding provided by the Scottish Ministers6. While it is for local authorities, as administering bodies, to reach their own view on this point, the Scottish Government is funding the payments as a response to the crisis that the global pandemic is causing. Payments to promote the welfare of children in need7 are also disregarded as income and capital of a person.

Communications and key messaging

24. To support local communications the following key messages are suggested:

 New Scottish Child Payment Bridging Payments will be made for each school aged child who receives Free School Meals on the basis of low income in 2021 and 2022. These payments are funded by the Scottish Government.  Payments will be made quarterly around the start of the Easter, Summer, October and Winter holidays, with £520 paid in both 2021 and 2022.  Payments which you have received to date, including the £100 paid at Easter 2021 and £100 at summer 2021 are part of the total to be received.  No application for this payment is required and payments will be made automatically to households where a child/young person is in receipt of Free School Meals on the basis of low income.  The payment can be used by families for any purpose as they see fit. There is no expectation that these payments are to be used for any specific purpose.  This is in addition to support delivered through the continuation of Free School Meals over the school holidays and the £130 Low Income Pandemic Payment.  Pre-school aged children are not eligible for this additional payment. The Scottish Child Payment is available for children under the age of 6 – to find out more about this and to apply please visit Scottish Child Payment - mygov.scot.  Children receiving universal Free School Meal provision in primary school settings are not eligible.  If you have not registered for Free School Meals and believe you would be eligible you can find out more and apply at: School meals - mygov.scot

5 The power under section 20 of the Local Government in Scotland Act 2003. 6 Schedule 4 paragraph 37 and schedule 5 paragraph 25 of the Council Tax Reduction (Scotland) Regulations 2012 and regulation 27(1)(j)(xi) of the Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012; these provisions were amended by the Council Tax Reduction (Scotland) Amendment (No. 4) Regulations 2020. 7 The power under section 22 of the Children (Scotland) Act 1995. 7

 Children/young people who receive Free School Meals as a result of local authority discretion, including those with no recourse to public funds, are eligible.  If you receive Universal Credit, then this payment will be counted as capital. This will not normally affect the amount you receive unless you have savings or other capital totalling over £6,000. If you are concerned that this payment could impact your Universal Credit award, you should report the payment in your journal by signing in to your Universal Credit account or by calling the Universal Credit helpline on 0800 328 5644.  This payment will be disregarded in full for other benefits and for income tax purposes.

25. Recipients of the Bridging Payments should be directed to claim the Scottish Child Payment once it opens to applications. Further details of this will be shared in due course.

26. Individuals can be directed to the public information available at DN: tbc

4. LOW INCOME PANDEMIC PAYMENT

Summary

1. It has been agreed that local authorities will provide a Low Income Pandemic Payment (LIPP) of £130, by the end of October 2021, for each household in receipt of Council Tax Reduction (CTR), and other households who are exempt from Council Tax or who have no liability as per below criteria.

2. It is estimated that around 550,000 households will be eligible for support through this measure. This includes approximately 500,000 households in receipt of CTR, and an estimated 50,000 households who are exempt from Council Tax.

Eligibility

3. Households are eligible to receive the payment if they satisfy the criteria for at least one day during the period between 1 April 2021– 30 April 2021.

4. The criteria is that they are in receipt of CTR, including Second Adult Rebate (SAR), or that they are exempt or have no liability for Council Tax on the following basis:

i. all the occupants are under 18 ii. all the occupants are care leavers iii. all the occupants are severely mentally impaired iv. the property is unoccupied because the resident has gone to someone else's home to provide care or the resident receives care elsewhere v. occupants are accessing Housing Support Service and/or living in temporary accommodation or a refuge

5. Eligibility for households living in dwellings exempt from Council Tax may require to be determined through other systems, for example housing records to identify individuals in temporary accommodation.

6. Reasonable steps should be taken to ensure a household receives no more than one payment, for example where:

a. a household moves to another local authority area within the payment period. In this instance the first local authority where the applicant was resident should make the payment; b. a household moves address, within the same local authority, or receives an exemption during the period of eligibility. c. a household splits. In this instance the total number of payments issued should not exceed the number of newly formed households.

7. Where a Council Tax dwelling contains more than one household for CTR purposes, who have joint and several liability for Council Tax, a payment should be made for each household in receipt of CTR in their own right, subject to the

eligibility outlined above. This approach should be applied for groups who are exempt or who have no liability for Council Tax, with one payment being made for each eligible household within the Council Tax dwelling.

8. Where a claim to CTR has been backdated and awarded for at least 1 day during the above noted period, this household will be eligible to receive the payment.

9. Where an eligible individual dies prior to receipt of payment, the payment should be made to the executor of the estate. Existing processes should be observed for payments made in this instance.

Delivery

10. All payments, except where backdating occurs, should be made no later than 31 October 2021. Payments, in cases where backdating occurs, should be made no later than 30 November.

11. In order to manage expectations of eligible households, councils should make information available publicly on the proposed delivery timetable and process for payments in their area.

12. Where entitlement is based on receipt of CTR, the payment should be made to the CTR applicant, or by credit to the account as indicated below. For groups who are exempt or who have no liability for Council Tax, local authorities should use discretion to identify the payee in these households.

13. Local authorities have discretion over the method used to make payments to households. Direct payment via BACS is encouraged with flexibility for alternate payment mechanisms to be used, such as PayPoint or equivalent or cheque. Local authorities should give consideration to the method of payment, given local capacity, and take reasonable steps to ensure recipients are not disadvantaged by the mechanism selected.

14. In line with our shared principles of dignity and respect, our preference is a ‘cash- first’ approach. However, in conjunction with the offer of a direct payment to households, local authorities may also offer a credit to a household’s Council Tax / Water and Wastewater account to reduce their liabilities. It is at the discretion of the householder how they choose for the payment to be made. Where a credit is applied to a household’s Council Tax account, this should be applied after the Council Tax Reduction is calculated to ensure that the household receive the benefit of the full £130 LIPP.

15. A light touch application may be required to request payment details from households. Local authorities should take reasonable steps to verify these payment details. Local authorities must ensure their actions are compliant with GDPR requirements.

16. Local authorities, where contacting individuals should make clear the timescale for response, the information required and what will happen if no response is

received. In doing so there may be instances where, despite reasonable steps being taken to make payments to eligible households within the delivery period, local authorities will be unable to make payment. In these instances the following action should be taken:

a. If councils are unable to make payments to individuals by 31 October, or 30 November where backdating applies, or if no response is received within the deadline set, a credit should be made to Council Tax accounts for eligible households and a notification issued to this effect. b. In the case where no liability for Council Tax exists, no payment will be made and councils should confirm to the Scottish Government how many households were eligible but did not receive a payment.

17. Local authorities will bear no liability to make payment to households out with the period of delivery outlined above.

Reporting

18. Local authorities are required to provide high level reporting, using the template provided in this guidance, to the Scottish Government Tackling Child Poverty Unit via email to [email protected]. The template includes:

a. the number of payments made in their area by those who are: i. in receipt of CTR; ii. exempt from Council Tax (as per above criteria).

b. The number of households who were eligible but for which it was not possible to make a payment, including for those who are: i. in receipt of CTR; ii. exempt from Council Tax (as per above criteria)

19. Returns should be provided no later than 17 December 2021. This will enable funding to be provided to local councils through redetermination of the General Revenue Grant and Parliamentary scrutiny of this measure.

Treatment for tax and benefit purposes

19. DWP have considered the purpose of the payment against the definition of ‘local welfare provision’ in relevant legislation.8 On that basis, DWP have indicated that payments would be disregarded for the purpose of those benefit entitlements for which the legislation specifies that capital to be disregarded includes ‘any local welfare provision.’9 DWP have also indicated that the payments would have no impact on particular contribution-based benefits.10

8 Regulation 2(1) of the Income Support (General) Regulations 1987, regulation 1(3) of the Jobseeker’s Allowance Regulations 1996, regulation 2(1) of the Employment and Support Regulations 2008, regulation 2(1) of the Housing Benefit Regulations 2006 and regulation 1(2) of the State Pension Credit Regulations 2002. 9 Income-related Employment and Support Allowance, Housing Benefit, Income Support, Income- based Jobseekers’ Allowance, and State Pension Credit. 10 New Style Jobseeker’s Allowance and New Style Employment and Support Allowance. 11

20. DWP have indicated that payments will be treated as capital for the purpose of Universal Credit and may impact upon entitlement where the total capital held exceeds £6,000, either prior to or as a result of this payment. Further information on the treatment of capital for the purpose of Universal Credit can be found on the understanding Universal Credit website.

21. HMRC have indicated that payments would be disregarded as income for tax and benefit purposes.

22. Within the Council Tax Reduction system a crisis payment made by a local authority for the purpose of meeting a short term need is disregarded as income and capital of a person, where the payment is made using the local authority’s power to advance well-being11 and is using funding provided by the Scottish Ministers12. While it is for local authorities, as administering bodies, to reach their own view on this point, the Scottish Government is funding the payments as a response to the crisis that the global pandemic is causing.

Communications and key messaging

23. To support local communications the following key messages are suggested as a template for adaptation:

 As announced by the Scottish Government on 8 March, households in receipt of Council Tax Reduction will receive a £130 payment to help towards increased costs and lost income during the pandemic.  The payment will also be offered to households who: o have no liability for Council Tax as they are in temporary accommodation, including a refuge. o are exempt from Council Tax as: . their home is unoccupied because they are being cared for or are caring for someone else; . all members of the household are care leavers, are under 18 or are severely mentally impaired;  Eligibility is based on receipt of Council Tax Reduction, or meeting criteria for additional groups, in April 2021. If a backdated claim for Council Tax Reduction is awarded for this period, then households will also be entitled to the payment.  Payments will be made by the end of October 2021 for eligible households.  The date when payments will commence is still to be confirmed.  Only one payment will be made to each household.  We will be in contact to agree how the payment will be made. This can be paid into your bank account, via an alternate mechanism such as PayPoint, or as a credit to your Council Tax account.

11 The power under section 20 of the Local Government in Scotland Act 2003. 12 Schedule 4 paragraph 37 and schedule 5 paragraph 25 of the Council Tax Reduction (Scotland) Regulations 2012 and regulation 27(1)(j)(xi) of the Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012; these provisions were amended by the Council Tax Reduction (Scotland) Amendment (No. 4) Regulations 2020. 12

 We will not employ third parties to gather information on our behalf. If you have reason to believe that the person contacting you does not work for the council please contact us immediately. You should never give out your bank details to someone you do not trust.  Households can use this money as they see fit and there is no expectation that the £130 payment be used for any specific purpose.  If you receive Universal Credit, then this payment will be counted as capital. This will not normally affect the amount you receive unless you have savings or other capital totalling over £6,000. If you are concerned that this payment could impact your Universal Credit award, you should report the payment in your journal by signing in to your Universal Credit account or by calling the Universal Credit helpline on 0800 328 5644.  This payment will be disregarded in full for other benefits and for income tax purposes.  This payment is in addition to support delivered through the Family Pandemic Payment.  If you are not already receiving Council Tax Reduction and believe you may be eligible you can find out more at the Citizen’s Advice Scotland website.  The free Money Talk Team service is available to help ensure you receive all the support you are entitled to. Delivered by Citizen’s Advice Scotland, this can be accessed by calling 0800 085 7145, or you can find out more on their website.

24. Individuals can also be directed to the public information available at https://www.mygov.scot/low-income-pandemic-payment.

5. REPORTING TEMPLATES

REPORTING TEMPLATE - SCOTTISH CHILD PAYMENT BRIDGING PAYMENT

Organisation: <>

Payment: <>

Notes for completion of return: this template should be completed and returned to the Scottish Government Tackling Child Poverty Unit via email to [email protected], no later than:  13 May for the spring payment  31 August for the summer payment  30 November for the autumn payment  31 January for the winter payment

Table 1: Number of payments issued:

Number of Payments Total Value of Payments Issued for Eligible Children / Young People

Additional information - where appropriate please record detail of any outstanding payments or known issues in the box below:

Completed by:

Position: Contact Details: Date:

REPORTING TEMPLATE - LOW INCOME PANDEMIC PAYMENT

Organisation: <>

Notes for completion of return: This template should be completed and returned to the Scottish Government’s Tackling Child Poverty Unit no later than 17 December 2021. Returns should be made via email to [email protected].

Table 1: Please record the number of payments which have been successfully issued to eligible households:

PAYMENTS SUCCESSFULLY ISSUED Eligible Group Total Number of Total Value of Payments Payments (£) CTR recipients Other groups, as detailed below i. all the occupants are under 18 ii. all the occupants are care leavers iii. all the occupants are severely mentally impaired iv. the property is unoccupied because the resident has gone to someone else's home to provide care or the resident receives care elsewhere v. occupants are accessing Housing Support Service and/or living in temporary accommodation or a refuge

Table 2: Please record the number of households which were eligible but for which it was not possible for a payment to be made:

Eligible Group Number of payments not made: CTR recipients Other groups, as detailed below i. all the occupants are under 18 ii. all the occupants are care leavers iii. all the occupants are severely mentally impaired iv. the property is unoccupied because the resident has gone to someone else's home to provide care or the resident receives care elsewhere v. occupants are accessing Housing Support Service and/or living in temporary accommodation or a refuge

Additional information - where appropriate please record detail of any outstanding payments or known issues in the box below:

Completed by:

Position: Contact Details: Date: