SSC/S5/19/13/A

SOCIAL SECURITY COMMITTEE

AGENDA

13th Meeting, 2019 (Session 5)

Thursday 9 May 2019

The Committee will meet at 9.00 am in the James Clerk Maxwell Room (CR4).

1. Decision on taking business in private: The Committee will decide whether totake items 4 and 5 in private.

2. Delivery of devolved benefits: The Committee will take evidence from—

Shirley-Anne Somerville, Cabinet Secretary for Social Security and OlderPeople, Scottish Government;

David Wallace, Chief Executive, Social Security Scotland;

Lisa Baron-Broadhurst, Programme Director, Social Security Directorate,Andy McClintock, Chief Digital Officer, Social Security Directorate, andKevin Stevens, Head of Strategic & Programme Finance, Social SecurityDirectorate, Scottish Government.

3. Subordinate legislation: The Committee will consider the following negativeinstrument—

The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations2019 (SSI 2019/133)

4. Delivery of devolved benefits: The Committee will consider the evidenceheard earlier in the meeting.

5. Annual report: The Committee will consider a draft annual report.

SSC/S5/19/13/A

Anne PeatClerk to the Social Security Committee

Room T3.60The Scottish Parliament

EdinburghTel: 0131 348 5182

Email: SocialSecurityCommittee@parliament.scot

SSC/S5/19/13/A

The papers for this meeting are as follows—

Agenda Item 2

SPICe Briefing SSC/S5/19/13/1

Agenda Item 3

Note by the Clerk SSC/S5/19/13/2

Agenda Item 5

PRIVATE PAPER SSC/S5/19/13/3 (P)

Social Security Committee

13th Meeting, 2019 (Session 5), Thursday 9 May 2019

Progress of social security devolution: „Wave 1‟ and „wave 2‟ benefits

Introduction This paper provides suggested themes for discussion with the Cabinet Secretary for Social Security and Older People on progress in implementing „wave 1‟ benefits and proposals for „wave 2.‟

Wave 1 benefits are: best start grant, carer‟s allowance supplement, funeral expense allowance, best start foods and the young carer grant.

Not included in this list are universal credit Scottish choices or the job grant as neither are Scottish social security benefit payments.

Wave 2 benefits are the remaining benefits being devolved: the three forms of disability assistance, cold spell heating assistance, winter heating assistance, employment injury assistance and severe disablement benefit.

The Scottish Government published an overview of the benefits that are being devolved including spend and caseload. Available here.

The table below sets out key dates for wave 1 and wave 2. The Scottish Government will have full legal and financial responsibility for all devolved benefits from April 2020. New benefits will open for new claims only, with existing cases being transferred from DWP by 2024. This timetable was announced on 28 February along with the publication of a number of policy position papers and a consultation on disability assistance.

The Scottish Government published a „lessons learned‟ paper on 2 May.

Audit Scotland‟s report published last week found that while:

“The Scottish Government has done well to establish a new agency. […] delivering on its initial commitments [was] harder than expected.”

A key theme raised was the difficulty recruiting staff with the right levels of skills – particularly in IT and finance. The report found that the programme “is doing the right things” but it “faces significant resourcing challenges” to deliver „wave 2‟ and “there is a risk that constant short term delivery pressures do not allow the team the time and space to implement the required changes.”

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Table 1: Timetable for Scottish social security In Payment

Carer‟s allowance supplement September 2018

BSG – pregnancy and baby payment December 2018

BSG – early years April 2019

Launch this year BSG – school age 3 June 2019

Funeral expense payment Summer 2019

Best start foods Summer 2019

Young carer grant Autumn 2019

Launch in 2020 Disability assistance for children and

young people Summer 2020

Short term assistance Summer 2020

Welfare foods (nursery milk Scottish scheme)

August 2020

Disability assistance for older people Winter 2020

Winter heating assistance for families with a child on highest rate care

component of disability assistance for children and young people

Winter 2020

Launch in 2021 Disability assistance for working age

people Early 2021

Carer‟s allowance supplement for those with more than one disabled child

Early 2021

Winter heating assistance for older people

Winter 2021

Launch in 2022 Carer‟s assistance Spring 2022

Employment injuries assistance Autumn 2022

Income supplement 2022

It is expected that most cases will have transferred from DWP by 2023, and all will have transferred by 2024. This is with the exception of severe disablement allowance which will remain with the DWP in the long term.

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Theme 1: Programme resources and planning The Audit Scotland report (2nd May) raised a number of issues on the adequacy of programme resources and the need for more detailed planning.

The programme has assessed it needs 345 „core staff‟ but has been “routinely operating” with around 30% of these posts unfilled. Audit Scotland commented that:

“Given the real likelihood that the pace and pressure within the programme will increase, there is a high risk of a decline in staff morale and staff leaving, resulting in the loss of existing skills and experience”

More widely, there are 460 staff in total working on implementation across the Scottish Government as a whole.

Audit Scotland commented on a reliance on temporary and contractor staff because of difficulties in recruiting people with the skill and experience it needs. It noted that: “the high level of contractor and interim staff use has implications for the programme in terms of costs and continuity.”

As well as resulting in increased staff costs, Audit Scotland said, this also impacted on the capacity of the programme to plan and deliver which in turn further increased costs, created greater reliance on existing DWP systems and placed pressure on staff.

The report found that programme staff were aware of the issues but also that:

“there is a significant risk that the programme doesn‟t have the time and capacity to learn from experience to date and make the changes necessary to successfully deliver on wave two timescales”

The programme had estimated it needed £118m in 2019/20 but was allocated £77.8m in the Scottish budget.1 Audit Scotland noted that:

“managing expenditure within this budget is challenging given the level of activity anticipated.”

Audit Scotland was critical of the delay in updating the estimate of full implementation costs prepared for the financial memorandum to the Social Security (Scotland) Bill in 2017 and original business case. The report outlined significant changes since then, including the large increase in programme staff, increased use of contractors and policy decisions such as Social Security Scotland staff carrying out disability assessments. The report commented that:

“The programme intends to update its overarching programme business case. It struggled to resource this work and progress it as

1n.b: This is the budget for the programme and is separate from the budget Social Security Scotland

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The following suggests themes for discussion:

quickly as it had planned and has brought in consultants to progress this.”

In response, the Cabinet Secretary wrote to the Committee outlining action that had been taken. This included that:

The government is about to award a contract for the major computerplatform that will underpin future benefits

Salary flexibility is being explored in relation to IT posts, along with alonger term programme designed to develop the government‟s ownspecialist base

The government has commissioned an independent review of finances,which is due to report this month

The Committee may wish to discuss:

Whether the timetable announced in February is deliverable Whether the Cabinet Secretary is considering increasing the

financial resources available to the programme Whether the independent review of finances will be published When the revised business case and implementation costs will be

published Whether a realistic view was taken at the start of the programme

of the ability to recruit staff with the required specialist skills The risk that increased pressure on staff might affect the culture

of the programme and the Agency, and hence on the serviceprovided to clients

Theme 2: „Wave 1 benefits: Commencement The carer‟s allowance supplement and two of the three forms of best start grant (BSG) are in payment. The BSG school payment will start on 3 June.

The funeral expense payment regulations were passed by the Parliament in March and the benefit is due to start in the summer, but an exact date has not yet been announced. (The BSG early years payment start date was announced on the day it started – 29 April).

There are also regulations which are part of setting up the infrastructure of Scottish social security which have not yet been made. The Scottish Government consulted last year on regulations and a Code of Practice on investigating fraud in the Scottish social security system. The consultation closed in October 2018. but regulations have not yet been laid.

The regulations on best start foods and young carer grant have still to be laid. Both have been consulted on and the young carer grant regulations have gone to the Scottish Commission for Social Security for consideration. The

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best start foods regulations do not need to go to the Commission because they are not being made under the 2018 Act.2 The Audit Scotland report commented that:

“there is a substantial amount of complex work still required to deliver the remaining wave one benefits by the end of 2019”

The Committee may wish to discuss:

When a specific start date for the funeral expense payments will be announced (is the announcement likely to be on the same day that the benefit is commenced?)

What still needs to be put in place before the remaining „wave 1 benefits‟ can launch

When the Government intends to lay the regulations on investigations and offences that were consulted on last year

Theme 3: Wave 1 benefits: „lessons learned‟ A „lessons learned‟ paper was presented to the Social Security Scotland executive advisory board in March. Issues raised included:

Tight timescales : including the release of products in close proximity to Go Live “meant that testing was constrained”

Guidance products could have been clearer and implementing changes in response to issues arising could be improved

Early live system performance and stability “significantly impacted delivery”

Strengths identified included: the collaborative approach, leadership and positive client experience. The Scottish Government published a separate „lessons learned‟ paper on 2 May. Issues raised included:

Allowing more time for staff recruitment and induction

Ensuring guidance for frontline staff is clear and comprehensive

Cultivating strong relationships with DWP at official level Issues raised in the Audit Scotland report included the manual work -around that had been needed for the BSG payment. This had been needed because the required digital interface with DWP systems to check that the applicant had not received the equivalent benefit from the DWP had not been developed in time.

“This has led to increased processing times, and a higher risk of error. Developing the automatic check will be completed later in the

2 They are to be made under Scottish Ministers’ powers to make regulations under s.13 Social Security

Act 1988. See: policy note to the Scotland Act 1998 (Agency Arrangements) (Specification) (no.2)

Order 2018 n. 1344

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programme, adding to future workloads and pressure on programme staff.” (Audit Scotland, May 2019)

Another issue has been that the BSG – pregnancy and baby payment attracted far more applications than had been forecast. This was discussed in a paper to the Social Security executive advisory board on 9 March:

“It is vital that we have access to appropriate data so that we can appropriately evaluate and revise our forecasts. We do not yet have sufficient information to do this for BSG.” (Communities Analysis Division paper to Social Security Scotland Scotland executive advisory board. BSG forecasting FOI release)

The management information published also indicates how processes were performing in the early days of the benefit. Statistics on the BSG payments were published on 29 April and show that:

52% (7,820) of applications were processed within 10 working days

79% (11,775) were processed within 15 working days, and

21% (3,160) were processed in 21 days or more Around two thirds of applications were successful. Of the 4,905 applications denied, 1,630 were from postcodes outside Scotland. There were 240 requests for redetermination, of which 145 had been decided by 28 February. Of those decided, around a third (56%) were allowed. David Wallace, Chief Executive of Social Security Scotland told the Committee on 28 February that many of the decisions to allow a BSG payment at redetermination related to the client having gained eligibility since first applying rather than the first decision being wrong at the time it was made. The Scottish Government „lessons learned‟ paper published on 2 May summarised lessons it had taken from the experience of other government programmes, including universal credit and previous public sector IT programmes. These included:

The need to engage with users early, and involve them in the planning and testing stages

Prioritising getting payments correct above meeting a particular timetable

Proposing to transfer people automatically to the new system rather than require new claims

Proposing no face to face assessment at the point of transfer

Managing the project using a mix of traditional „Prince 2‟ and „Agile‟ approaches

Building in contingency to financial planning

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The Committee may wish to discuss: How the experience of launching the CAS and BSG are informing

plans for forthcoming benefits Specific measures that have been put in place to respond to

„lessons learned‟ from the launch of the BSG Reasons why 13% of BSG applications took more than 21 days to

process Progress in improving the data that is available for making

forecasts of demand for the BSG and other Scottish benefits Whether detailed „decision maker‟ guidance will be published for

all Scottish social security benefits Theme 4: Stakeholder engagement The Scottish Government has a wide range of advisory and stakeholder groups related to creating Scottish social security (12 listed on their web-site). It also has „experience panels‟ which enable the „lived experience‟ of those in receipt of social security to be taken into account in designing the Scottish system. The Experience Panels involve more than 2,400 volunteers from across Scotland. A large number of reports of the experience panel have been published. Examples of the impact of the experience panels are given in the 2018 annual report:

“The move from a three month to a six month time period for applying for Best Start Grant came directly from people telling us that three months was not long enough. Similarly, decisions around Social Security Scotland's name, the colours, photos, icons and words they used have been shaped by panel member's input.”

A summary of membership noted underrepresentation from certain groups such as people from ethnic minorities and young people. The 2018 annual report stated that:

“we will reopen recruitment of panel members in early 2019 to refresh membership. We will also continue work with ethnic minorities, and begin a large programme of work with particular marginalised, sensitive and dispersed groups of people.”

There are also the various advisory groups which inform Government policy. While information on many advisory groups is available on line, the published minutes are not always very recent (for example the latest published minutes for the best start grant are for January 2018). The most recent published minutes are those for November 2018 for the Disability and Carer‟s Expert Advisory Group which are for November 201. An independent review of the Disability and Carer Benefit Advisory Group (April 2019) found that, in general, participants and officials had a positive view of the group, but some areas were identified for improvement. For example the review queried:

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“The degree to which the advice provides and conveys challenge, detail, evidence and collective voice of the Group.”

The Committee may wish to discuss:

Progress in ensuring that the experience panels include a wide range of lived experience

How to capture „lived experience‟ outwith the „experience panels‟ Whether all the advisory groups have the resources available to

them to enable them to provide robust advice and challenge to the government

Whether, in order to promote transparency in policy making, minutes of all advisory groups should be published

Theme 5: Joint working with UK Government Delivering Scottish social security requires joint work between the Scottish and UK Governments including:

Ensuring smooth interaction between reserved and devolved social security for people receiving payments

The Scottish Government reliance on data and administrative systems run by the DWP

Agency agreements where the UK Government delivers devolved benefits on the Scottish Government‟s behalf.

Audit Scotland commented that:

“The programme and agency will be reliant on the DWP for a number of years.”

Their report noted that:

“The programme has maintained productive working relationships with the DWP across operational areas.”

Interaction between reserved and devolved rules Introducing devolved benefits requires legislation in both the Westminster and Scottish Parliaments in order to make sure that this doesn‟t result in benefit recipients losing money from elsewhere in the system. It is also necessary to ensure that the reserved benefits stop being available in Scotland as the Scottish benefits come into force. Data and administrative systems The Scottish Government has agreed a contract with DWP to use its payment system and customer information system for three to five years with the potential for extension. Audit Scotland reported that the Scottish Government is currently assessing the feasibility of developing digital systems at a Scotland wide level in the longer term. The agency also often has to rely on DWP information to identify those eligible for certain devolved benefits. The operation of universal credit

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flexibilities is also dependent on DWP implementing administrative system changes. Similarly, „abolishing the bedroom tax at source‟ would require administrative changes to DWP systems related to calculating the housing cost element of universal credit. Agency agreements The Scottish Government is currently using agency agreements for a transitional period for carer‟s allowance and welfare foods. The carer‟s allowance agency agreement is published but the welfare foods agency agreement is not. The current timetable is to take full legal and financial responsibility for remaining benefits by April 2020, although actual delivery of these by Social Security Scotland will be phased in between now and 2024. Further agency agreements will therefore be required to cover the period from 2020 to 2024. The current carer‟s allowance agency agreement is due to finish in September 2020. This current agreement sets out that:

Annual increases to carer‟s allowance will be the same for the UK and Scottish carer‟s allowance

The treatment of debt recovery and fraud will be the same as the UK carer‟s allowance

The Scottish Government will not request changes to procedures and processes, and

It will be reviewed through the joint ministerial group on welfare The Committee may wish to discuss:

How experience of the carer‟s allowance agency agreement will inform future agency agreements

Whether it is likely that agency agreements will continue to be on the basis of making no change to existing UK benefit policy

Whether the agency agreement for welfare foods ought to be published, and whether all future agency agreements will be published

Progress of discussions with DWP on adjusting universal credit to implement split payments

How to ensure good relationships between DWP and Scottish Government

Theme 6: Wave 2 Benefits: disability assistance The Scottish Government is currently consulting on the three forms of disability assistance that will be legislated for from 2020. These are:

Disability assistance for children and young people – replacing child DLA

Disability assistance for working age people – replacing PIP

Disability assistance for older people – replacing attendance allowance

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The focus for change is on improving the assessment process. The basic structure and amounts paid will not change. The Scottish Government proposes that transfers will be automatic and people currently on DLA, PIP or attendance allowance will not need to make a new claim. Most people will transfer to the equivalent Scottish benefit. For example, people of pension age on attendance allowance will transfer to disability assistance for older people. However people aged over 65 on PIP3 will move onto disability assistance for working age people. People over 65 on DLA will transfer to Social Security Scotland but remain on DLA.4 The policy position paper on disability and carer‟s assistance refers to the need for at least a year‟s detailed development before a new benefit can be launched:

“Our experience of delivering the first tranche of benefits shows that we need at least a year of detailed design, development and testing”

Disability assistance for children and young people is due to start for new claims in summer 2020, which means we are very close to the start of that required period of “detailed design development and testing.” The Committee may wish to discuss:

Progress with “detailed design, development and testing” for disability assistance for children and young people, given its launch in just over a year‟s time

Progress in developing the clinical guidance for assessing whether the terminal illness rules ought to apply

Whether any further detail is available for the policy to make an additional payment to carers of more than one disabled child from spring 2021 (such as the amount of payment and eligibility)

If some people of pension age are to receive DLA under the administration of Social Security Scotland, what appeal rights, provision for changes of circumstances, terminal illness rules etc will apply?

3 The replacement of DLA for working age people by PIP is expected to be completed by February

2021. However this process does not include those on DLA who were born before April 1948. As at

August 2018 there were around 82,000 people in Scotland aged over 65 on DLA (statXplore. The

Office for Budget Responsibility estimated in March that PIP is expected to be fully rolled out by

February 2021 which would be before people start to transfer onto Scottish disability assistance. 4 Scottish Government, personal communication to SPICe, April 2019.

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Theme 7: Wave 2 Benefits: winter payments Cold spell heating assistance and winter heating assistance are due to replace cold weather payments and winter fuel payment.

The current transitional arrangements run until April 2020. Further transitional arrangements will therefore be needed given that cold spell heating assistance and winter heating assistance will not start until winter 2021 and full implementation will not be complete until 2024.

The policy position paper on winter benefits (February 2019) stated that:

“we will explore with DWP transitional delivery of these benefits on the basis of existing eligibility. We anticipate that we will need to work closely with DWP to progressively transfer responsibility for payments and undertake an annual review of delivery arrangements in Scotland.”

Some benefits are „exportable‟ to other EEA countries under EU Co-ordination Rules. UK Government policy is that essentially the same rights will apply after Brexit, although there is legislation before the Westminster parliament that would allow changes to be made by regulations in the longer term.

The Committee may wish to discuss: What transitional arrangements will be made to cover the period

from April 2020 until the introduction of cold spell heatingassistance and winter heating assistance

Policy on benefits that are exportable to other EEA countries. Forexample, will winter heating assistance be available to Scottishresidents who move to other EEA countries, in the same way thatwinter fuel payments are

Theme 8: Wave 2 Benefits: other disability benefits Also being devolved are severe disablement allowance (SDA)5 and industrial injuries disablement benefits (IIDBs).6

SDA will remain with the DWP on a long term basis under an agency agreement.

IIDBs are due to be replaced by employment injury assistance with new claims starting from Autumn 2022.7 The policy position paper on IIDBs noted a number of difficulties in transferring existing claims including:

“While the scheme has a relatively low caseload in Scotland, it is likely to be one of the most complex to transition.” […]

5 A benefit for people unable to work due to disability. It closed to new claims in 2001 and as at

November 2018 there were 2,010 people in Scotland in receipt. 6 Acts as a form of no fault compensation for employees who have had an industrial accident or

contracted one of a list of industrial diseases due to working in specified occupations. This list is

overseen by the Industrial Injuries Advisory Council 7 See Q&A on employment injury assistance

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There is some information available electronically but with the majority being paper, it would be particularly complex to transfer the paper files quickly ensuring that no Scottish clients are missed.

The UK Government receives specialist advice on industrial injuries and diseases from the Industrial Injuries Advisory Council. The policy position paper states that the UK government has decided that the role of IIAC should remain unchanged and that it should provide advice to UK Ministers only. The paper therefore proposes that:

“It may therefore be prudent not to establish a similar Council until the scheme has been sufficiently changed to avoid duplication.”

Suggestions for changes to the scheme include, for example, extending it to self-employed people or making changes to the list of industrial diseases. However the policy position paper states that the interaction with reserved law would make such suggestions difficult to implement.

The Committee may wish to discuss: The timescale for more detailed policy development and

consultation for employment injury assistance Whether it would be preferable if the IIAC could provide advice to

the Scottish Government or, in the longer term, whether thereshould be a Scottish version of the IIAC

Whether, in the absence of significant policy differences, IIDBsought to remain administered by DWP in a similar way to SDA

Camilla Kinder Senior Researcher SPICe, 03 May 2019

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Social Security Committee

13th Meeting, 2019 (Session 5), Thursday 9 May 2019

Subordinate Legislation

Overview of instrument

1. There is one negative instrument for consideration at today’s meeting.

The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations

2019 (SSI 2019/133)

2. This Committee has been designated lead and the Instrument and Policy Noteare attached at Annexe A.

Purpose

1. The instrument makes amendments to the Council Tax Reduction (Scotland)Regulations 2012 and the Council Tax Reduction (State Pension Credit)(Scotland) Regulations 2012.

2. The purpose of which are to ensure that Discretionary Housing Payments are nottreated as income or capital within the Council Tax Reduction scheme.

Delegated Powers and Law Reform Committee consideration

3. The DPLR Committee considered the instrument at its meeting on 23 April and

did not raise any issues.

For Decision

4. The Committee is invited to consider and note the instrument.

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S C O T T I S H S T A T U T O R Y I N S T R U M E N T S

2019 No. 133

COUNCIL TAX

The Council Tax Reduction (Scotland) Amendment (No. 2)

Regulations 2019

Made - - - - 4th April 2019

Laid before the Scottish Parliament 8th April 2019

Coming into force - - 1st June 2019

The Scottish Ministers make the following Regulations in exercise of the powers conferred by

sections 80 and 113(1) and paragraph 1 of schedule 2 of the Local Government Finance Act

1992(a) and all other powers enabling them to do so.

Citation and commencement

1. These Regulations may be cited as the Council Tax Reduction (Scotland) Amendment (No. 2)

Regulations 2019 and come into force on 1 June 2019.

Amendment of the Council Tax Reduction (Scotland) Regulations 2012

2. The Council Tax Reduction (Scotland) Regulations 2012(b) are amended as follows—

(a) in schedule 4 (sums to be disregarded in the calculation of income other than earnings), in

paragraph 62 after “to” insert “regulation 2(1) of the Discretionary Financial Assistance

Regulations 2001(c) or”, and

(b) in schedule 5 (capital to be disregarded), in paragraph 11(1)(d) after “to” insert

“regulation 2(1) of the Discretionary Financial Assistance Regulations 2001 or”.

(a) 1992 c.14. Section 80 and paragraph 1 of schedule 2 were amended by paragraph 176 of schedule 13 of the LocalGovernment etc. (Scotland) Act 1994 (c.39). There are other amendments to section 80 and amendments to section 113(1) that are not relevant to these Regulations. The functions of the Secretary of State, in so far as within devolved competence, were transferred to the Scottish Ministers by virtue of section 53 of the Scotland Act 1998 (c.46).

(b) S.S.I. 2012/303, relevantly amended by S.S.I. 2017/326, S.S.I. 2018/211 and S.S.I. 2019/29. (c) S.I. 2001/1167, to which there are amendments not relevant to these Regulations.

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Annexe A

Amendment of the Council Tax Reduction (State Pension Credit) (Scotland) Regulations

2012

3. In schedule 4 (capital disregards) of the Council Tax Reduction (State Pension Credit)

(Scotland) Regulations 2012(a), in paragraph 21(2)(n) after “to” insert “regulation 2(1) of the

Discretionary Financial Assistance Regulations 2001(b) or”.

KATE FORBES

Authorised to sign by the Scottish Ministers

St Andrew’s House,

Edinburgh

4th April 2019

(a) S.S.I. 2012/319, relevantly amended by S.S.I. 2013/142, S.S.I. 2015/46, S.S.I. 2016/81, S.S.I. 2017/326, S.S.I. 2018/211 and S.S.I. 2019/29.

(b) S.I. 2001/1167, to which there are amendments not relevant to these Regulations.

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EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Council Tax Reduction (Scotland) Regulations 2012 and the

Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012 (“the principal

Regulations”).

The amendments add references to payments under the Discretionary Financial Assistance

Regulations 2001 (“the 2001 Regulations”) to lists of payments that local authorities must

disregard in the calculation of income and capital for the purposes of the principal Regulations.

The Social Security (Scotland) Act 2018 (asp 9) provides for local authorities to have the power to

make discretionary housing payments under provisions in that Act, once they are commenced. The

principal Regulations were amended by the Council Tax Reduction (Scotland) Amendment

Regulations 2019 (S.S.I. 2019/29) to ensure that any such payments are disregarded in council tax

calculations. The amendments made by these Regulations will ensure that any payments made

under the 2001 Regulations will also be disregarded in such calculations.

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POLICY NOTE

THE COUNCIL TAX REDUCTION (SCOTLAND) AMENDMENT (NO. 2)

REGULATIONS 2019

SSI 2019/133

The above instrument is made in exercise of the powers conferred by sections 80 and 113 and

paragraph 1 of schedule 2 of the Local Government Finance Act 1992. It is subject to the

negative procedure.

The purpose of these Regulations is to ensure that Discretionary Housing Payments

are not treated as income or capital within the Council Tax reduction scheme.

Policy Objectives

This instrument amends the Council Tax Reduction (Scotland) Regulations 2012 and the

Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012 (jointly referred

to as “the principal Regulations”).

The Council Tax Reduction (CTR) scheme operates by reducing a household’s council tax

liability by taking into account their circumstances and income. It was introduced with an

overall policy objective of ensuring that no household would be worse off than it would have

been had Council Tax Benefit not been abolished.

The Council Tax Reduction Amendment (Scotland) Regulations 2019, which came into force

on 1 April 2019, amend various legislative references in the principal Regulations to reflect

intended changes to the legislation which governs the payment of Discretionary Housing

Payments (DHP).

It has become evident that existing DHP payment arrangements require to be continued

beyond 1 April 2019. This means that legislative references to DHPs within the principal

Regulations should be made to both the current legislation and to its intended replacement

(by Part 5 of the Social Security (Scotland) Act 2018). This will ensure the payments are not

treated as income or capital within the Council Tax Reduction scheme.

Regulations 2 and 3 make amendments to the principal Regulations to maintain these

legislative references so that local authorities are directed that entitlement to relief under the

CTR scheme is to be unaffected by payments of DHP, under either legislative basis.

Consultation

As this instrument does not alter the policy intention of the principal Regulations and ensures

Discretionary Housing Payments will benefit their recipients rather than being used to meet

increased Council Tax liabilities, it was not considered necessary to consult on the policy.

COSLA and the local authority practitioner community have been engaged in the

development of these regulations and in the proposed changes to the Discretionary Housing

Payment arrangements.

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Impact Assessments

An Equalities Impact Assessment (EQIA) was undertaken in development of the principal

Regulations. As these amending Regulations do not alter the policy intention of the principal

Regulations a further EQIA has not been produced.

As there is no impact on the environment or on environmental issues no Strategic

Environmental Assessment is required.

Financial Effects

This instrument has no impact on Council Tax receipts or liabilities.

The Minister for Public Finance and Digital Economy confirms that no BRIA is necessary as

the instrument has no financial effects on the Scottish Government, local government or on

business.

Scottish Government

Directorate for Local Government & Communities

3 April 2019

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