Westminster has passed a major milestone in the transfer of new powers to Holyrood under the Scotland Act 2016, meaning that for the first time the Scottish parliament will be able to legislate to tailor the welfare system to reflect local needs, including the ability to create entirely new welfare benefits in areas of devolved responsibility
The new regulations set out the timetable for the transfer to Holyrood of a number of welfare powers, including the ability to create new benefits in devolved areas; top up reserved benefits (such Universal Credit, tax credits and child benefit); make discretionary payments and assistance; change employment support; make changes to Universal Credit for the costs of rented accommodation, and on the timing of payments and recipients; and make discretionary housing payments.
The majority of these powers will transfer on 5 September 2016. Discretionary housing payments will transfer on 1 April 2017.
The transfer of welfare powers is being overseen by a joint ministerial working group on welfare, with representatives from Westminster and Holyrood. The group will meet next in the autumn, and work is ongoing to discuss the transfer of the remaining welfare powers under the Act (including carers and disability benefits, as well as maternity payments and funeral payments) which will transfer at a later date.
Once all of the powers are transferred the Scottish government will have control of 15% of current social security spend in Scotland.
Additional new powers (including on tax, welfare, air passenger duty (APD), and the licensing of onshore oil and gas extraction) will be implemented at later dates. For income tax rates and thresholds this will be April 2017, and for APD April 2018. Other dates are to be determined.
Keith Brown, Scottish cabinet secretary for economy, jobs and fair work, said: ‘New powers on employability are among the most exciting of the new areas to be devolved as it gives Scotland the chance to create services that help long term unemployed Scots find work and stay in work.
‘Devolving powers over discretionary housing payments will allow us to have full control over the funding allocation for Scotland, in addition to the funding we are already providing to mitigate fully the negative impact of the bedroom tax.
‘We have already committed to extending winter fuel payments to families with severely disabled children and reform assessments for disability benefits.'
