Question reference: S6W-19900
- Asked by: Collette Stevenson, MSP for East Kilbride, Scottish National Party
- Date lodged: 11 July 2023
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Current status: Answered by Shirley-Anne Somerville on 28 July 2023
Question
To ask the Scottish Government what estimate it has made of the costs of mitigating any UK Government policy decisions, insofar as those decisions impact on people in Scotland, in (a) each of the last five financial years and (b) the current financial year.
Answer
More than £711 million has been spent in the last five financial years to mitigate the effects of UK Government policy. It included investment in Discretionary Housing Payments, the Scottish Welfare Fund, money advice services, and Universal Credit Scottish choices.
The Scottish Government uses Discretionary Housing Payments (DHPs) to fully mitigate the bedroom tax and we have recently provided funding to mitigate the benefit cap as far as is possible within devolved powers. DHPs are also used to support those affected by the ongoing freeze to local housing allowance rates.
In 2023-24 we are making £83.7 million available to local authorities to spend on DHPs. Since 2018 (including 2023-24) we have invested over £452 million in DHPs, and a further £8.7 million to assist local authorities with the administration of the scheme.
The Scottish Welfare Fund (SWF) is an essential source of occasional support for those most in need. In 2023-24 we are investing £35.5 million in the SWF. Since 2018 (including 2023-24) we have invested over £210 million in the fund and a further £32 million to assist local authorities with the administration of the scheme.
From 2018 to late 2022, the Scottish Government allocated funding from its overall welfare and debt advice budget for advice relating to UK Government welfare reforms. From October 2022, this funding stream was brought together with previously separate funding streams to support the Money Talk Team service delivered by Citizens Advice Scotland. Since 2018, £6.58 million has been invested in money advice services specifically relating to UK Government welfare reforms.
Since 2017, the Scottish Government has been giving people in Scotland the choice to receive their Universal Credit award either monthly or twice monthly and to have the housing costs in their Universal Credit award paid directly to their landlord. Since 2018, the cost to the Scottish Government of providing these choices has been £0.8 million.
A breakdown of spend on Discretionary Housing Payments, the Scottish Welfare Fund, money advice services, and universal credit Scottish choices in the last five financial years and the current financial year is provided in the following table.
Year | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | Total |
DHP, Bedroom tax budget | £50.1m | £52.3m | £59.7m | £71.0m | £68.1m | £69.7m | £370.9m |
DHP, Benefit cap budget | £6.2m 1 | £6.2m | |||||
DHP “Other” | £10.9m | £10.9m | £18.9m 2 | £10.9m | £16.0m 3 | £7.9m | £75.5m |
DHP Admin funding | £1.2m | £1.2m | £1.2m | £1.2m | £1.7m 4 | £2.2m | £8.7m |
Scottish Welfare Fund | £33.0m | £33.0m | £35.5m | £35.5m | £38.0m 5 | £35.5m | £210.5m |
Scottish Welfare Fund admin funding | £5.0m | £5.0m | £5.5m | £5.5m | £5.5m | £5.5m 6 | £32.0m |
Money advice services 7 | £1.5m | £1.5m | £1.5m | £1.5m | £0.7m | See note 7, below | £6.6m |
Universal credit Scottish choices | £0.2m | £0.2m | £0.2m | £0.1m | £0.1m | No forecast available | £0.8m |
Total cost of mitigating UK Government welfare reform | £101.8m | £104.0m | £122.5m | £125.7m | £130.1m | £127.0m | £711.1m |
1. Prior to 2023-24 benefit cap funding was included in the DHP ”Other” line
2. Figure includes additional £8m of Covid-support funds
3. Figure includes additional £2.6m for benefit cap support and £2.5m cost of living support
4. Figure includes £0.5m additional admin funding paid for benefit cap policy roll-out preparation
5. Figure includes £2.5m to support delivery of the Scottish Welfare Fund in 2022-23
6. Forecast
7. From 2018 to late 2022, The Scottish Government allocated funding from their overall welfare and debt advice budget for specific advice relating to UKG Welfare Reforms. From October 2022, this funding stream was brought together with other previously separate funding streams to support the new, streamlined Money Talk Team service delivered by Citizens Advice Scotland.