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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 6 November 2025
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Displaying 1294 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

Does the same principle not apply to adult disability payment? The Scottish Government has been clear that the same principles are supposed to apply for both disability benefits. Your answer does not explain the huge difference between the 11 per cent and 37 per cent increases.

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

Generally speaking, there is good cross-party agreement on the principles. The real issue is deciding how effective payments are and addressing the specific problems that have manifested in the welfare system.

The Scottish Government has made its views known strongly, for good reasons or bad reasons, about the mitigation of the two-child cap—that is not new, and it has been on-going for some time. Why did you decide to introduce mitigation for the two-child cap now, which did not meet the Scottish Fiscal Commission’s deadline for working on the budget? Why did the SFC have to come back last week to say that its projections were for £155 million in 2026-27, which would increase to £198 million in 2029-30?

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

Yes, and in the foreseeable future, because the Scottish Fiscal Commission has provided forecasts right up to 2029-30.

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

Have you been able to work out the increase in those costs? Obviously, Parliament cannot do anything about them—we have to accept them, as those are the market prices for office accommodation and hotel accommodation. Has a percentage increase been built into projections for future budgets?

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

With respect, cabinet secretary, I note that the increase in the adult disability payment budget is 11 per cent, whereas the child disability payment increase is 37 per cent, which is far in excess of 11 per cent and is also far in excess of what has happened south of the border. I am interested in why that huge growth in payment is to happen over the course of just a year. What is the reason for that?

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

So, there will be no tax changes or changes to public expenditure to fund the policies.

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

That would be helpful, because one of the most important things that we must do when welfare benefits are developed is measure their effectiveness. There is relatively good cross-party agreement that the Scottish child payment has worked well, been quick, been easy to access and had a pretty convincing record on targeting those who are most in need. I would argue that the evidence for the child payment is much more positive than it is for other benefits.

As we are in a very tight fiscal situation—you have referred to that—we have to be sure that the benefits that are being paid out are effective, yet we seem to have a considerable gap in the data that would allow us to understand which payments are the most effective. Why do we know that the Scottish child payment has worked well when that is not so clear for other benefits? Do you accept that that is a big issue for the Scottish Government, particularly if it is trying to mitigate policies from the Westminster Government at the same time?

13:45  

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

It has been really well trailed in the media recently that the cost of Edinburgh hotel accommodation in the inner city has shot up substantially. That includes hotels that members use—I am not someone who does that, but a lot of colleagues do. Has that cost indeed increased? In some cases, I think that it has done so by 30 or 35 per cent, with further increases likely. Has that been thought about in relation to members’ accommodation expenses?

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

I will turn our attention to social security budgets. The child disability payment budget is £450 million at the moment, and the costs are to go up to £618 million in 2025-26, which is an increase of 37 per cent. Will you outline why there is such an extensive increase in that budget?

Finance and Public Administration Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Liz Smith

I will finish with the direct question that I asked your colleague Shirley-Anne Somerville last Thursday. The Scottish Government is arguing that its policy choices are about investment, and I presume that the return on that investment will be due not in the forthcoming budget but in years ahead. Where is the money coming from to fund the substantial increase in social security?