Social Security (Scotland) Act 2018 (Scottish Adult Disability Living Allowance) (Consequential Modifications) Order 2025

Considered in Grand Committee

Moved by

That the Grand Committee do consider the Social Security (Scotland) Act 2018 (Scottish Adult Disability Living Allowance) (Consequential Modifications) Order 2025.

My Lords, this draft order is the result of collaborative working between the two Governments of Scotland and supports the Scottish Government’s decision to introduce the Scottish adult disability living allowance in Scotland next month. Discussions on this order began over a year ago under the previous Government. I thank the noble Lord, Lord Cameron, for his previous work in the Scotland Office to facilitate this order.

The Scotland Act 2016 devolved significant powers, including responsibility for certain social security benefits and employment support, to the Scottish Parliament. The Scottish Government’s introduction of the Scottish adult disability living allowance under Section 31 of the Social Security (Scotland) Act 2018 exercises this responsibility. The Scottish Government will administer this new benefit in Scotland through their executive agency, Social Security Scotland.

At introduction, the Scottish adult disability living allowance will operate on broadly the same terms as the disability living allowance that it replaces. It is the intention of the UK Government that those individuals in receipt of the Scottish adult disability living allowance should receive the same treatment in the reserved social security and tax systems as those on the disability living allowance, the Scottish recipients of which will transfer from DWP to Social Security Scotland.

The order before us is made under Section 104 of the Scotland Act 1998, which allows for necessary amendments to legislation in consequence of any provision made by or under any Act of the Scottish Parliament. It is therefore the appropriate vehicle to make these technical—by which I mean “very technical”—but important changes to recognise the Scottish adult disability living allowance in reserved systems. Scotland Act orders are a demonstration of devolution in action, and I am pleased to say that the Scotland Office has taken through over 250 orders since devolution began.

I turn to the effect that this order will have and the provisions that it will make. The order makes amendments to UK legislation to ensure that the Scottish adult disability living allowance is recognised as a qualifying benefit, in the same way as disability living allowance, in the reserved social security system with regard to entitlements to additional reserved UK Government benefits and premiums. This includes the Christmas bonus and the carer’s allowance. This means that recipients of the Scottish adult disability living allowance will be entitled to receive the annual £10 Christmas bonus payment if it has not already been paid via another benefit. Should all other eligibility criteria be met, it will also ensure that the reserved carer’s allowance can be paid to someone caring for someone in receipt of the Scottish adult disability living allowance.

This order also prevents dual entitlement to benefits paid because of the same needs: individuals entitled to Scottish adult disability allowance cannot be entitled to attendance allowance, disability living allowance or personal independence payments. This is in the same way that disability living allowance and PIP are not payable to people in receipt of attendance allowance. It also amends the taxation of trusts with disabled beneficiaries, to treat those with beneficiaries in receipt of Scottish adult disability living allowance in the same way as those with beneficiaries that receive DLA.

My Lords, I am grateful to the Minister for her introduction of this order. As she says, it is technical and complex but there can be the rub in these kinds of things. I also welcome the fact that there is constructive collaboration between the Scottish Government and the UK Government on this. The people of Scotland have two Governments; it is important that they know that they do, and who is doing what and where they are working together. I take it that the same funding transfer will take place as in other social security benefits that have been transferred to Scotland. Again, it is important that the UK Government make that clear and that the Scottish Government acknowledge it, but it obviously gives the Scottish Government the ability to adapt these benefits to local circumstances, which is really the advantage of this.

I think we might all be grateful for the Scottish Commission on Social Security’s analysis. There are one or two aspects of concern which it has raised— I do not intend to pursue them all—that I want to explore with the Minister. In my previous capacity as a Member of Parliament, obviously I saw many circumstances where benefit claimants had problems with the administration. They also had family involved in that too.

Perhaps the biggest issue that happens is that those people who have succeeded in applying for and getting long-term benefit, in particular, have a real anxiety about anything that involves a review, even though they have been told that it is permanent. As the commission points out, the fact that there is an option to apply for adult disability payment—the Scottish adult DLA can effectively continue as if it was DWP—sounds like an improvement on the situation in England, where there is an automatic transfer to PIP. But the problem for many claimants is that if they apply, they really do not know whether they will be better or worse off. That is aggravated by the fact that once they have applied, if they find out that they are worse off they cannot revert to the previous benefit.

As ever, I am grateful to the noble Baroness for her helpful introductory remarks and for her kind words about me and my brief stint as a Minister in the Scotland Office. I feel somewhat undeserving of those. The July election meant that I never quite got the opportunity to present a Scotland Act order in this Committee, and I now find myself, regrettably, scrutinising them in opposition.

In general terms, this is indeed a sensible and technical order that we will not oppose. Clearly, those who are entitled to the Scottish adult disability allowance should not also be entitled to the UK Government’s disability living allowance at the same time. Further, it is important that the relevant UK legislation is amended to ensure that recipients of the new Scottish DLA are treated in the same way as recipients of DLA in the rest of the UK, in respect of reserved taxes and benefits.

Since 2016, the devolution of some aspects of welfare to the Scottish Government has been complex and certainly not straightforward. It is perhaps a unique policy area, where some elements are reserved and some are devolved. That means that it requires sophisticated operating systems to be in place within both the new Social Security Scotland and the DWP. It also necessitates close and collaborative working between the Scottish and UK Governments at an official level—a point made so well by the noble Lord, Lord Bruce.

With that in mind, I raise the following points. Is the noble Baroness confident that these operating systems are agile and accurate enough to avoid the very duplication that this order seeks to preclude, as well as ensuring that cases that might be complex and difficult do not lead to people being denied payments that they are entitled to?

Secondly, although there has been no formal consultation here, can the Minister update the Committee on what informal consultation has occurred, if any? Has there been a public information campaign of any kind to ensure that those affected by these changes are aware of them?

I thank both noble Lords for their contributions to the debate this afternoon. As ever, they asked some pertinent and relevant questions. However, I reiterate that this is a technical SI and that the policy process is a matter for the Scottish Government. We are, as our responsibilities make clear, providing them with the legal framework that already exists.

With regard to the questions asked by the noble Lord, Lord Bruce, the same funding transfer arrangements will take place. As I said, this is technical. I completely agree with him in terms of his experiences as an MP. Some of the most heart-wrenching conversations I ever had were with my former constituents who were in fear of what might happen in terms of a review—not even of the review itself. Then the appeal process was something else. So I completely agree with the noble Lord, but I reiterate that the application and review processes are a matter for the Scottish Government and Social Security Scotland. However, I assure him that there will be ongoing collaboration between both Governments, who touch on the lives of the people of Scotland and of people in every corner of the United Kingdom. There is genuine good will; I hope that there will be even better good will after the next set of Scottish elections, but we will see.

With regard to the benefit options, the Scottish Government are making sure that individuals can make an informed choice about what will benefit them, but I want to clarify something for noble Lords: everybody currently on DLA will ultimately end up transferring into the new benefit. It is a replacement benefit. As that process happens, it is a matter for the Scottish Government.

I turn to the noble Lord, Lord Cameron. I am sorry—not necessarily for the country but for him—that he never got to stand on this side of the Room to put forward a Section 104 SI. However, he started the work that we are discussing today, and I am grateful for that. With regard to his specific questions on the agile systems that we expect to be in place, the Scottish Government and Social Security Scotland believe that they are ready for them. In fact, the process will get under way on 21 March. So they are definitely aware, but we will continue to work closely with them. In terms of whether those affected are aware, that will be an ongoing process, but we will make sure that we work closely with anyone who is affected, especially anyone who either is on the border or would have been entitled and who lives in either Scotland, England or Wales—as the onus will be on us, I think; my officials have not shouted at me yet so I think we are okay.

Motion agreed.