AIC/16/22 Agenda item 11 7 September 2016 A New Future for Social Security in Scotland Consultation Purpose of the paper The purpose of this paper is to inform the AIC about the Scottish Government s consultation on the new social security powers and to seek their input into our response. Our initial thoughts for our response is that we should strongly support the more positive, personalised and holistic direction of travel outlined for the benefits system in Scotland (or at least the areas that are being devolved) as it could encourage more people, especially those from our priority access groups, to consider education. It is also our view that we should seek to streamline the interaction between our student support funding and these benefits to maximise the likelihood of positive outcomes for students. This paper also outlines how we will seek input on our response from college staff and student support experts. Finally the paper outlines that this consultation is running alongside a Scottish Government review of student support for both sectors. The SFC is part of that review group. The Committee is invited to: Note the consultation and process, including the developing EIA. Inform the SFC response. Recommend contacts for wider circulation of this information. Financial implications There are no direct financial implications as a result of initial discussion and contribution to the consultation.
A New Future for Social Security in Scotland Consultation Purpose 1. The purpose of this paper is to inform the AIC about the Scottish Government s consultation on the new social security powers and to seek their input into our response. Background 2. A New Future for Social Security in Scotland was published in March. In that paper, the Scottish Government made a commitment to work with people across Scotland to determine how best to use the new social security powers which are being devolved by the Scotland Act 2016. 3. The Scottish Government is inviting responses to a consultation process which will then enable the views of stakeholders to be reflected in primary legislation to be introduced to the Scotland Parliament by June 2017. Consultation will run from July 29 to October 28. You can find more information at: http://www.gov.scot/topics/people/fairerscotland/futurepowers/consultation 4. The proportion of the Scottish social security budget that will devolve to Scotland amounts to only 2.7 billion or 15% of the total 17.5 billion spent in Scotland every year to support our people, tackle inequalities and take a step towards building a fairer Scotland. 5. The consultation outlines that the Scottish Government intends to take an ambitious, new and distinctly different path to the one the UK Government has followed. It states that transferring the devolved benefits will require a largescale programme of transition, implementation and, where appropriate, reform. The consultation outlines that this will be of a scale unlike anything the Scottish Government has delivered since devolution. 6. The full consultation, A New Future for Social Security in Scotland; Consultation on Social Security in Scotland can be found here: http://www.gov.scot/publications/2016/07/9955 7. A shorter, summary version can be found here: http://www.gov.scot/publications/2016/07/5342 1
8. Specific areas on which Scottish Government are consulting which are expected to be reflected in the Bill include: Part 1: A Principled Approach - Fixing the Scottish Government s principles for social security in legislation, including the principle that people should be treated with dignity and respect; Part 2: The Devolved Benefits - Delivering on the Scottish Government s policy commitments, including our commitments to: increase Carer s Allowance to the level of Jobseekers Allowance, and replace Sure Start Maternity Grants with a new, expanded Best Start Grant; and Part 3: Operational Policy - Taking a Scottish approach to important social security matters such as helping to ensure that the user s experience reflects our principles, reviewing and appealing decisions and taking care of each individual s information and personal data. 9. Some more details on the questions asked in relation to each section are provided in Annex A. Initial SFC reflections 10. The SFC executive feels that we should respond to this consultation and support its positive direction of travel to enable the devolved aspects of the benefit system to be more personalised. Committee members may want to reference the Outcomes diagram in Annex B for evidence of this. 11. A particular focus of our response will be a request for a more streamlined interaction between the benefit system and college education to encourage more people from the most disadvantaged communities to consider college and to make it easier for those who are currently at college and on benefits. We also suggest that our response encourages the Scottish Government to incentivise the option and possibility of study either full or part time whilst on benefits which would be a significant change from the current system. 12. In terms of more detailed responses in relation to the tie-in between benefits and student support for students particularly those with children, caring responsibilities or those with care experience we feel that it would be ideal if they could continue to receive benefits support in the holidays whilst studying. This would also apply to other students who are defined as self-supporting. 13. The student support system is designed to provide students some help with general maintenance costs during term-time but we know that in some cases colleges have to help with things like student housing costs through their discretionary funds. There is a very strong moral and education reason for this 2
support to be put in place and it is fundamental to helping us deliver our access ambitious but it also means that this uses up funding from an already limited pot of funds and therefore puts support for other students at risk. 14. SFC's Student Support team, through its 2014 Review of Student Support and its ongoing engagement with student support contacts in the sector, is aware of a number of ways in which the social security and student support systems interact and impact upon one another. 15. A Scottish Government Review of Student Support is taking place at the same time as the review of Social Security. We welcome the opportunity to review these two systems alongside each other and create a system which incentivises study as an option for social security recipients and makes the transition to college or university study as straightforward as possible. 16. Our general principle is that study should be a viable option for those receiving benefits and we should ensure that the system incentivises study as an option, rather than results in students losing out on support. However, we also have some more detailed issues we would like to explore through this consultation such as At present, students can stay on benefits if studying part time, but not full time. Is there a sound rationale for this? In particular we need to look at the tie-in between benefits and student support for students with children, student carers, care experienced students, self-supporting students. It would be ideal if they could continue to receive benefits (eg. Housing Benefit, Benefits support in the holidays) whilst studying. The UK Government's decision to only allocate Housing Benefit to people over the age of 21 has also put additional pressure on the student support funds, with students under this age seeking help with housing costs from the college. Universal Credit it would be helpful if it could be explicitly stated that study is an acceptable activity to undertake as a work related requirement. At present the system provides a definition of study in terms of number of hours of study for FE students. This should be reviewed and the definition harmonised between FE and HE. 3
17. We are now seeking AIC advice on this and the wider consultation. However, we also feel that it would be beneficial to seek the views of college contacts though our Student Support Network email list, to ensure that we have fully captured relevant feedback on the current system. We will also seek the view of the Further Education Student Support Advisory Group (SFC's advisory group on student support policy). Risk assessment 18. There are no risks associated with this paper. Equality and diversity assessment 19. Equality and low income is a priority throughout the consultation. 20. The Scottish Government seeks input to improve its partial Equality Impact Assessment (EqIA) so as to produce a full EqIA to support the Bill. The partial EqIA that has been developed to support the Consultation so far is available at; Download the Partial Equality Impact Assessment (EQIA) 21. Equality and diversity considerations are central to the development of this consultation and SFC acknowledges the Scottish Government s EqIA, in particular, and we will also carefully assess our own responses for equality impacts. Financial implications 22. There are no direct financial implications as a result of initial discussion and contribution to the consultation. Recommendations 23. The Committee is invited to: Note the consultation and process, including the developing EIA Inform the SFC response Recommend contacts for wider circulation of this information Publication 24. This paper will be published on the Council website. Further information 25. Contact Halena Gauntlett, tel: 0131 313 6697, email: hgauntlett@sfc.ac.uk. 4
Annex A: Specific areas on which Scottish Government are consulting which are expected to be reflected in the Bill; Part 1: A Principled Approach - Fixing the Scottish Government s principles for social security in legislation, including the principle that people should be treated with dignity and respect; Part 2: The Devolved Benefits - Delivering on the Scottish Government s policy commitments, including our commitments to: increase Carer s Allowance to the level of Jobseekers Allowance, and replace Sure Start Maternity Grants with a new, expanded Best Start Grant; and Part 3: Operational Policy - Taking a Scottish approach to important social security matters such as helping to ensure that the user s experience reflects our principles, reviewing and appealing decisions and taking care of each individual s information and personal data. In relation to Part 1, A Principled Approach; the consultation asks: Which way do you think principles should be embedded in the legislation? Through a Claimant Charter or through legislation. We might give thought to how legislation can be implemented and on whom would you place a duty to abide by the principle that claimants should be treated with dignity and respect? o The Scottish Government o The Scottish Ministers o The Chief Executive of the Social Security Agency o Someone else, please specify and the role of Ministers Or to give thought to how our priority groups might better understand the key messages through a Charter, what it should contain and who should be involved in drafting it? Are the Outcomes in Annex B the right high level outcomes to develop and measure social security in Scotland? Consideration is given to user experience and co-production. Co-production means enabling people to shape and co-design the services they use, and involves a process of on-going dialogue with service users and organisations, to achieve improved outcomes. In order to co-produce social security services, from the perspective of users and people with real-life experience of the current system. Does the Committee have suggestions for priority and interest groups? 5
o With whom should the Scottish Government consult, in order to ensure that the use of language for social security in Scotland is accessible and appropriate? o How can the Scottish social security system ensure all social security communications are designed with dignity and respect at their core? In relation to Part 2: The Devolved Benefits, the consultation outlines the devolved benefits (see below) and seeks feedback on proposed changes: o Ill Health and Disability Benefits which means - Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance (AA), Severe Disablement Allowance (SDA) and Industrial Injuries Disablement Benefit (IIDB) o Carer s Allowance o Sure Start Maternity Grants (which we propose should be replaced by the Best Start Grant) o Funeral Payments o Cold Weather Payments and Winter Fuel Payments o Discretionary Housing Payments o Some powers in relation to Universal Credit (i.e.to split payments between household members) The consultation outlines that a first and guiding priority will be ensuring a smooth transition for people receiving benefits, particularly disabled people and carers. It then seeks more detailed feedback on each of the above policies. Some particular areas the committee may wish to note are: o The consultation also outlines the need to ensure that disability benefits work as effectively as possible with other devolved services such as health and social care and housing, and to explore the potential for a whole-oflife disability benefit that is responsive to people s needs at different stages of their lives. o In relation to the carers allowances it suggests developing a Scottish carer s benefit which helps deliver positive experiences and outcomes for carers and is embedded in a wider carers strategy. This could include better joining up with devolved services, and addressing the barriers to work and study in the current Carer s Allowance o The consultation proposes to introduce a new Job Grant for young people, who have been unemployed for more than 6 months, and who are entering the labour market. 6
Part 3: Operational Policy, this section relates to anyone with an interest in social security in Scotland. Part 3 looks at the strategic functions that the social security system will need to carry out in order to operate competently. The Scottish Government is considering how it works with, and delivers through existing public and third sector organisations, not for profit, social enterprises or private sector partners in Scotland. The Committee may wish to consider that the Scottish Government seeks views on publicly funded advice services and considers information protection. Equality and low income is a priority throughout the consultation, the consultation specifically asks: What does the Scottish Government need to do, as it develops a Scottish social security system, to ensure that equality implications (including for those on low incomes) are fully taken into account? Are there equality considerations for individual benefits (including those on low incomes) that you would like to draw to our attention? What does the Scottish Government need to do to ensure that a Scottish social security system provides the right level of support for those who need it, and what are the possible equality impacts of this? Annex B: Short, Medium and Long Term Outcomes 7
8