Letter from Convener to Secretary of State for Work and Pensions, 11 January 2022
Dear Secretary of State,
UK benefit system and delivery of Scottish benefits
The Committee held an evidence session on 16 December 2021 on the forthcoming Adult Disability Payment (ADP), which will start to replace Personal Independence Payment (PIP) in Scotland. This session considered both issues about the regulations, and for an independent review of ADP, expected to be conducted in 2023.
During the course of this evidence session some concerns were raised that relate to how the UK and Scottish benefit system interact. These are set out below.
Concerns about how divergence in policy might impact on Scottish claimants of UK benefits were raised. For example, as has been pointed out by both the Scottish and UK Governments, if changes were made to the PIP rules or to the ADP rules in Scotland, this could impact on access to passported benefits. This could constrain the scope for policy divergence. (Col 10)
It was suggested by witnesses that the Scottish Government could undertake some early scoping work for the independent review to assist it with looking in more detail at what the constraints on divergence might be, and whether they can be addressed. It was also suggested that the review consider what changes could be made within the current session of Parliament, and those that would need to be made over the longer-term.
The Committee has written to the Scottish Government about its preparations for the independent review and asks if the UK Government will engage with the independent review to share its views on addressing the interaction between ADP and reserved benefits.
We would also appreciate your guidance if, in principle, the UK Government would be minded to accept ADP and CDP as passporting benefits, even if there is future policy divergence from them to PIP and DLA respectively. This will be an important principle to be honoured for the devolution of social security to work as anticipated. This will also be an important area for the Committee to explore with UK Ministers in evidence to the Committee as soon as possible.
The Committee notes that Scottish Government and Department of Work and Pensions (DWP) officials are in continual discussion to ensure that ADP proposed changes will be regarded as like for like and will not impact on passporting entitlements. However, Judith Paterson (Scottish Commission on Social Security (SCOSS)) cautioned that this couldn’t be taken for granted for the future. (Col 18-19)
The UK Government’s green paper on health and disability discusses a number of potential changes to the UK benefit system that could have significant implications for the devolved system. In particular, the green paper refers to consulting on changing PIP descriptors. Subject to the timing of any changes to PIP descriptors, SCOSS considered there would be “obvious” implications for the Scottish system. While major changes suggested, such as exploring the scope of combining working-age benefits such as universal credit allowance and PIP into one benefit, could have indirect consequences for the devolved benefit system. (Col 19) Judith Paterson explained, for example, that if there is a reduced cost of delivering PIP in the UK, there could be, through the fiscal framework, less money for the Scottish Government to deliver ADP, which would have significant implications for Scotland. (Col 20)
Given the implications and potential risks to the Scottish system posed by potential changes to the UK benefit system, the Committee would be grateful for confirmation of the timing for the proposed white paper.
Concerns were also raised with the Committee about the slower than expected transfer of people from DLA to PIP. This means that some people who would be entitled to ADP will be in receipt of DLA when the national roll-out of ADP starts.
The Committee therefore asks the UK Government what the current timetable is for completing PIP roll-out in Scotland.
A response would be welcomed by 4 February.
This letter is copied to Chloe Smith MP, Minister of State (Minister for Disabled People, Health and Work) and to Ben Macpherson, Minister for Social Security and Local Government.
Yours sincerely
Neil Gray MSP
Convener, Social Justice and Social Security Committee