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Social Security benefits

Most social security benefits are paid out by the UK government. Benefits are provided through the Department for Works and Pensions (DWP). Since 2016 (The Scotland Act 2016), the Scottish Government have been able to make additional social security payments. Social security payments are provided in Scotland by Social Security Scotland.

Selected benefits from Social Security Scotland

Benefits for people under 16 years include (all rates for 2023):

• Scottish Child Payment - £100 every four weeks to help towards the costs of looking after each child under 16 for families who get certain benefits
• A range of Best Start grants e.g. Best Start Grant Pregnancy and Baby Payment – one off payment of up to £707.25 from 24 weeks in pregnancy up until a baby turns 6 months for families who get certain benefits
• Bereavement Support Payment – Financial support to those who qualify when someone dies in the family.

Other Social Security Scotland benefits include disability benefits (Adult Disability Payment and Child Disability Payment), carer benefits (Carer’s Allowance Supplement and Young Carer Grant) and Heating Benefits (Child Winter Heating Payment and Winter Heating Payment.

The Scottish Welfare Fund is also available to provide support to those over 16 years and who are on a low income and getting certain benefits. Applications are made through local councils. There are two funds – Crisis Grant which helps with unexpected emergencies and Community Care Grants which provides financial support for people who care for others.

Finally, young people under the age of 23 years and people over 60+ years are entitled to free trave

Selected benefits from the Department of Work and Pensions (DWP)

All rates 2023 unless stated.

Child Benefit – A weekly benefit of £24 (first child) or £15.90 (additional child). Paid to the person responsible for that child. Children may also qualify for Child Benefit if they are under 20 and they stay in approved education or training.

Cost of Living Payment – Three one-off payments worth £900 to people who receive certain benefits such as Universal Credit or Pension Credit.

State Pension (or New State Pension) - A weekly payment of £203.85 to who have reached retirement age (2023/24). Pensioners (and other groups) may also qualify for additional support such as Pensions Credit – a top-up benefit where a pensioner’s total income falls below a certain level.

Universal Credit (UC) – A payment to help with living costs including food, heating and housing. Available to some people if they are on a low income. UC was worth £292.11 per month for a single person under 25 years and £368.74 per month for a single person over 25 years. People living as couples and if there is children in the household. Note: Jobseekers Allowance is being replaced by Universal Credit going forward

There are a wide range of other benefits available to those in need in society including Personal Independence Payment (PIP) – extra money to help people who experience illness, disability or a mental health condition or Attendance Allowance which is paid to some people who need help with their care or have a disability or illness.

The UK government reported in 2023/24 it would spend £341bn on social protection which includes social security payments.

Different Scottish and UK approaches to social security benefits

In recent years Conservative UK governments have been keen to reduce government spending and instead focus on economic growth. Conservative UK governments aim to encourage more people take up paid employment (“people to work their way out of poverty”) rather than depend on the State. Therefore, the eligibility for benefits has been tightened with, for example, those unemployed being subject to benefit sanctions (penalties) for missing a job interview or similar. Further, in 2017, the UK Conservative government introduced a two-child limit cap or limit for some types of support e.g. the child element of the Child Tax Credit.

In Scotland, the SNP government has pursued a different approach. With the aim of reducing social inequality, the SNP introduced, for example, the Scottish Child Payment in 2021 which has subsequently been uprated and was worth £25 in 2023.

There is a debate on what has been called the “welfare trap”. This is where people who are unemployed are encouraged to take up work but find that their income is lower if they move off benefits and into paid employment. Critics of the welfare trap would like to see higher minimum rates of pay to ensure everyone taking up paid employment is better off in work.

National Health Service (NHS)

One of the most important ways in which people are supported in the Scotland (healthcare is a devolved matter) is through the National Health Service (NHS). With a comprehensive range of services covering all aspects of health, the NHS is largely paid for from taxation. Founded in 1948, the NHS continues to provide care for most people in the UK although there is a private healthcare sector with about one in eight people in the UK using the private sector for healthcare in 2022.

The debate over the NHS

The UK government reported in 2023/24 it would spend £245bn on health. This is a record figure. However, with an ageing and growing population plus the increasing cost of attracting and retaining staff, healthcare repeatedly funding falls short of healthcare demand. In recent years, NHS waiting lists and waiting times for treatments have grown. A range of NHS staff have also taken industrial action (strikes) over pay and conditions.

Housing

Decent, affordable housing is a basic requirement for everyone. As with healthcare and education, the Scottish government aims to reduce social inequality through investment in social housing (housing to support people who can’t afford to rent or buy a home on the open market). In 2023-24, the Scottish Government will spend almost £752m to improve social housing in Scotland including building new houses and improving existing housing.

Education

There is also a range of support within schools to reduce social inequality. This support includes free school meals and school clothing grants. Young people who stay in school beyond 16 years of age may be entitled to financial support through the Educational Maintenance Allowance (EMA). Many schools also receive additional Scottish Government funding to reduce the impact of poverty on the school day i.e. to provide for free financial support for visits or to pay for cooking in Home Economics. This additional money for schools is known as Pupil Equity Funding or PEF.

Opportunities for All

Under Opportunities for All, every 16 to 19 year old in Scotland will be offered a learning or training place in education or a Modern Apprenticeship if they are not already in a job.

The Scottish government will provide thousands of training places including 25,000 Modern Apprenticeship opportunities. It will also prioritise provision in colleges for 16 to 19 year olds and retain the Education Maintenance Allowance to provide financial support to those from lower income backgrounds to stay on at school.

The Early Years Framework

It is now widely accepted that the first three years of a child's life are critical to its life-long development. Therefore the government now tries to intervene early on with families where children are living in poverty and/or have parents with drug, alcohol or emotional issues. The Scottish government approach focuses on the Early Years Framework. This is an attempt to veer away from a reactive, crisis management approach towards prevention, early identification and early intervention in the lives of vulnerable children.

Baby box

Every baby born in Scotland is entitled to a baby box which is full of essentials. The box can also become a safe sleep space for babies. The box includes items such as: clothes, thermometer for the baby and the bath, books, and a comforter. Over 90% of parents who received one said it was working well.

Other forms of support – UK

The National Living Wage (NLW) is the minimum pay per hour which workers must receive by law. From April 2023 the rate was £10.42 for people aged 23 years age.

Workers who are under the age of 23 are entitled to the National Minimum Wage (NMW). The wage rate per hour depends on their age and if they are an apprentice.

Despite the NLW/NMW, many jobs such as catering, cleaning and care sector jobs, are low paid. People working in these types of jobs on the NLW/NMW often don’t earn enough money to make ends meet. They are said to experience “in-work poverty” as their income is not high enough to life them out of poverty. Anti-poverty campaigners have called for higher hourly wage rates or a real Living Wage of at least £10.90 per hour.