Chamber and committees

The Scottish Government has set out in its paper ‘Pensions in an independent Scotland’ a clear and unambiguous commitment on the pension responsibilities it will take on under independence. It also recognises that there would be a need for negotiation with the UK Government as part of the associated transfer of assets and liabilities.

The Scottish Government will enter negotiations with the UK Government following a vote in favour of independence to agree arrangements for the transition to independence, including shared service arrangements where appropriate. The First Minister and Prime Minister signed the Edinburgh Agreement in October 2012, in which the Scottish and UK Governments agree to work constructively together in light of the outcome of the referendum. We expect negotiations on transition to be entered into in the spirit of the Edinburgh Agreement and it will be in the interest of both countries to reach agreement quickly and constructively.

The Expert Working Group on welfare’s first report confirms the Scottish Government’s view that Scotland is well positioned to deliver benefit payments, including pensions, to people living in Scotland following independence. It also finds that all delivery options are possible in an independent Scotland.

Further Information can be found in the Scottish Government’s white paper Scotland’s Future: your guide to an Independent Scotland.

Yes. While the statistics code of practice specifically covers the production of official statistics, Pensions in an Independent Scotland was produced using the principles contained in the code. It was led by Scottish Government analysts who produced the document in an impartial and objective way, ensuring the accuracy of its statistics and their presentation.

Pensions in an Independent Scotland sets out clearly that under 2010-based Office of National Statistics/National Records of Scotland population projections, and without further action being taken, the total dependency ratio in Scotland will rise slightly above the dependency ratio in the UK in the early 2030s, although this picture has improved slightly following updated 2012-based projections. As the paper also points out, the UK pensioner population is projected to rise more quickly than the Scottish pensioner population over the long term.

There are no current plans for a further publication on pensions and independence.

Social Protection is currently more affordable in Scotland than the rest of the UK as a proportion of tax revenues and GDP. For example, figures from 2011-12 show that 38% of Scottish tax revenues were spent on social protection, compared with 42% for the UK as a whole.

All countries face long-term fiscal challenges associated with aging populations Scotland wouldn’t be immune to this. However, Scotland will face any long-term challenges from a starting point of having a relatively stronger fiscal position than the UK as a whole and, with the economic levers available under independence, there will be the opportunity to grow and diversify the Scottish economy.

Pensions in an Independent Scotland makes clear that expenditure on social protection is currently lower in Scotland as a share of GDP than in the UK as a whole.

Annex B of the report reads: “The estimated cost is £8.5 million in 2016-17, relative to a baseline where Savings Credit is abolished. Total costs will increase over time.”

We are clear that transitional arrangements must not prevent the Scottish Government from having the policy flexibility to make any immediate changes to welfare (including pensions) policy, and we welcome the Expert Group on Welfare’s acknowledgement of this.

In Chapter 4 of the Scottish Government’s White Paper Scotland’s Future: your guide to an Independent Scotland we set out our priorities for action, including halting the further rollout of Universal Credit and Personal Independence Payment in Scotland, allowing the first government of an independent Scotland to take forward reforms to the welfare system that meet Scotland’s needs and reflect our priorities.

The costs and savings would be subject to negotiations.

I refer the member to the answer to question S4W-17825 on 9 December 2013. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.