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Chamber and committees

Social Justice and Social Security Committee

Subordinate Legislation considered by the Social Justice and Social Security Committee on 23 February 2023

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Introduction

  1. This report sets out the Social Justice and Social Security Committee's consideration of the Social Security Up-rating (Scotland) Order 2023. The minutes of the meeting have been published on the Committee's webpage. The Official Report of the meeting is available on the Scottish Parliament's website.

The Social Security Up-rating (Scotland) Order 2023

  1. The Social Security Up-rating (Scotland) Order 2023 [draft] was laid on 31 January 2023. This instrument was made in exercise of the powers conferred by sections 150(9) and 150A(6), and 189(1) and (4) of the Social Security Administration Act 1992 (‘the 1992 Act’). This instrument is subject to the affirmative procedure, which means it is for the Committee to recommend to the Parliament whether the draft regulations should be approved.

  1. According to the Policy Note and Explanatory Note, this instrument reviews the rates of some devolved social security benefits for which the Scottish Government follows the policy of the Department for Work and Pensions (DWP).

  1. The Scottish Government states that the instrument uprates the following benefits:

    • Attendance Allowance

    • Carer’s Allowance

    • Disability Living Allowance

    • Personal Independence Payment

    • Severe Disablement Allowance

    • Industrial Injuries Disablement Benefits

    • Industrial Death Benefit.

  1. The Scottish Government says that the Order also restates the amount of Child Dependency Increase as an additional weekly payment payable to some recipients of Carer’s Allowance and Severe Disablement Allowance and an increase to the Adult Dependency Increase as an additional weekly payment payable to some recipients of Severe Disablement Allowance. It adds that other benefits associated to the Severe Disablement Allowance and Industrial Injuries Scheme benefits will also increase.

  1. The Delegated Powers and Law Reform Committee considered the instrument at its meeting on 21 February 2023, and made no recommendations in its report in relation to this instrument.

  1. At its meeting on 23 February 2023, the Social Justice and Social Security Committee heard from Ben Macpherson MSP, Minister for Social Security and Local Government. The evidence session focussed on the Order as well as another affirmative instrument - The Social Security (Up-rating) (Miscellaneous Amendment) (Scotland) Regulations 2023.

  1. During the evidence session, Members asked questions about the adequacy of social security payments given the cost of living crisis and its impact particularly on low income households. The Minister said that the Scottish Government chose to increase the value of benefits where uprating is not a statutory requirement in light of the increase in the cost of living, including the high costs of food and energy.

  1. When asked about the Scottish Government's use of uprating as a measure and the need for it to be reviewed, the Minister explained that the September Consumer Price Inflation (CPI) is a measure over the preceding 12 months to September and not just the month of September. Therefore benefits will get uprated in April 2023 with a CPI representing change in prices over the year to September 2022. He added that the Government looks into other options every year but the current approach is currently the best.

  1. Members asked whether the Scottish Government might in future consider the uprating of benefits on an individual benefit basis instead of a blanket CPI rate and whether it would prefer to be able to decide independently of DWP about the increase of benefits with no statutory duty. The Minister replied that there has already been some flexibility and added—

    There are exclusively Scottish benefits whereby there is discretion to uprate. In the previous financial year, we chose to uprate by 6 per cent instead of 3.1 per cent for a number of such benefits, and this year we have uprated by 10.1 per cent even though there was no obligation to do so. i

  1. Following the evidence session, the Minister for Social Security and Local Government moved motion S6M-07738—That the Social Justice and Social Security Committee recommends that The Social Security Up-rating (Scotland) Order 2023 [draft] be approved.

  1. The motion was agreed to without division.

Recommendation

  1. The Social Justice and Social Security Committee recommends that The Social Security Up-rating (Scotland) Order 2023 [draft] be approved.