Hansard

Today, I would like to provide Parliament with an update on the introduction of the carers allowance supplement, and on progress with the next phase of delivery for social security in Scotland.

I am delighted to say that the vast majority of carers allowance supplement payments were issued during September 2018, and that all payments to carers, including the few that required special handling, were processed by mid-October. I am pleased to announce that, subject to the successful and timely transfer of data from the Department for Work and Pensions, the next payments of carers allowance supplement will be made to the majority of qualifying carers on 14 December.

Members of the Social Security Committee who visited Social Security Scotland’s headquarters in Dundee saw the feedback wall that includes comments from people who called in during September. I am sure that they will have been as touched as I was by some of the comments.

I want to take the opportunity to tell Parliament about one woman who, having received her payment, took the time to send in a card. She gave up her job to care for her daughter who was suffering from a long-term illness. As she said, she does it because she loves her daughter, but she sometimes gets tired, so the payment had made her feel appreciated. We should all be proud of that. I know that I speak on behalf of Parliament when I say that we all value and welcome what carers do for society.

Today is international children’s day: I am particularly delighted—on such an appropriate day—to be able to tell members more about our progress in delivery of the best start grant, which will support low-income families who have children in their early years. I gave evidence to the Social Security Committee on the draft Early Years Assistance (Best Start Grants) (Scotland) Regulations 2018 at the start of October, and I am pleased that the committee and Parliament approved the regulations. The regulations put in place a benefit that is fully in keeping with social security principles.

The best start grant is an investment in the resilience of families and it provides support at key points in their children’s early years. It respects the rights of the applicant and the rights of the child by ensuring the right to social security. The grant is deliberately designed to be accessible from the point of view of not just eligibility, but the service that will support it. We have improved access to the BSG by giving families longer to apply, both before and after their baby is born.

In addition, the BSG will foster dignity and respect. Where possible, it will minimise intrusive questioning by making the most of existing sources of information. The BSG has been built on modelling, research, collaboration with stakeholders and engagement with users to provide a sound evidence base for our decisions.

This morning, I signed the commencement regulations for the relevant sections of the Social Security (Scotland) Act 2018, which give the Scottish ministers the power to pay a form of early years assistance under the act. Today, I am proud to announce that we will use our new powers to take applications for the best start pregnancy and baby grant from 10 December. I am delighted to say that that means that payments will be made before Christmas 2018.

The best start grant will pay a £600 pregnancy and baby payment for the first child in a low-income family. That is £100 more than they would have got from the DWP sure start maternity grant, which the BSG replaces. It is important that, unlike the United Kingdom Government, the Scottish Government does not put a cap on the number of children, so payments will no longer be limited to the first child in the family. All second and subsequent children will receive a payment of £300 each.

I make it clear that that is not just for second children who will be born in the future. Our expansion of the window for application means that, from 10 December, parents who have a second or subsequent child who is not yet six months old can apply for the BSG. Under the Scottish Government, those children will be eligible to receive up to £800 in their early years. They would have received nothing from the UK Government.

Of course, in addition to the pregnancy and baby payment of £600, we are committed to the introduction of two new additional payments for every child. Those payments, which will be introduced by the summer of 2019, will be made at key transition points in the young child’s life. A payment of £250 will be made around the time when a child can start nursery, in order to support families with the costs of early learning, and a payment of £250 will be made around the time when the child can start school.

Based on 2019-20 figures, we estimate that when the early learning and school payments are included, the total number of payments that will be made each year will be in the region of 39,000, at a cost of £12.1 million. That is a substantial investment to ensure that our under-fives get the best possible start in life, and it reflects the Government’s emphasis on the early years.

As outlined in our programme for government, I am delighted to be able to deliver the pregnancy and baby BSG payments six months early. That means paying to families on lower incomes more money more quickly, and giving them vital help at a time when the support that is provided through UK Government social security spending is being drastically reduced.

We are in the final stages of preparation and testing for the launch, but this has not been without its challenges. As part of the programme for government, the First Minister announced that we would, assuming that the DWP put the necessary systems in place, be accelerating delivery of the best start grant. Although I am pleased to have been able to confirm today that we will do that, the caveat about DWP activity proved to be well-founded because—unfortunately—the DWP has not kept to schedule on its implementation plans.

In the summer of 2017, the Scottish Government formally requested use of the DWP’s customer information system, and a plan and schedule for doing that were agreed in spring 2018. However, the dates for accessing the system have consistently slipped and the DWP confirmed on 21 September that it could no longer meet the most-recently agreed dates. That has required us to make adjustments to our social security system in order to unpick, in effect, the computer code that had been put in place to speak to the DWP system.

Despite the challenges that have arisen from the DWP missing deadlines, Scottish Government officials have worked hard to put in place an alternative system. Because of our planning processes, the implications of the delay to accessing the DWP’s customer information system were recognised at an early stage so, as a result, the impacts have been minimised. Under our contingency arrangements, it will take slightly longer to process applications, but that will not have any impact on parents or on delivery of payments. Our priority is to ensure that parents can access the best start grant. Although we could wait for the DWP to catch up, I do not want parents to be affected by the DWP delay.

Clearly, the DWP has its own challenges to grapple with right now. I have written to the new Secretary of State for Work and Pensions, Amber Rudd, to welcome her to her new role. I have also taken the opportunity to reiterate the Scottish Government’s call to halt the roll-out of universal credit, which has been our eighth such letter in 18 months. I am, however, committed to collaborating with the secretary of state in order to ensure that we develop the best possible systems and processes for our shared clients. My officials have in place strong and effective relationships with their DWP counterparts. There can be a mismatch, however, in how we prioritise vital work on devolution of social security benefits. I have strongly urged—I will continue to do so—that devolution of benefits be given higher priority by the DWP in order to ensure that slippages are avoided and that we do not see such a pattern developing.

I am pleased to report the significant progress in building a new social security system for Scotland. As I have said, it is not without its challenges, but today marks another important milestone in the smooth transfer of benefits. However, our future success is guaranteed only if others—primarily the DWP—also play their full part. If they do, our programme will remain on track.

I reassure Parliament that we will never compromise on safety or security. Social Security Scotland is Scotland’s first new public service in a generation. It has been established for only two and a half months, but we are already demonstrating what we can do with social security powers when they are in our hands. We are delivering a social security system that always treats people with the dignity and respect that they deserve, and we are ensuring that we support the people who are on the lowest incomes. I look forward to reporting further progress in 2019.