SOCIAL SECURITY COMMITTEE AGENDA 8th …...2020/03/19 · AGENDA 8th Meeting, 2020 (Session 5)...

SSC/S5/20/8/A

SOCIAL SECURITY COMMITTEE

AGENDA

8th Meeting, 2020 (Session 5)

Thursday 19 March 2020 The Committee will meet at 9.30 am in the David Livingstone Room (CR6). 1. Decision on taking business in private: The Committee will decide whether

to take item 7 in private. 2. Subordinate legislation: The Committee will take evidence on the Carer's

Allowance Up-rating (Scotland) Order 2020 [draft] from—

Shirley-Anne Somerville, Cabinet Secretary for Social Security and Older People, Veronica Smith, Cross-Cutting Policy Officer, and Niall Wilson, Solicitor, Scottish Government.

3. Subordinate legislation: Shirley-Anne Somerville (Cabinet Secretary for Social Security and Older People) to move—S5M-21020—That the Social Security Committee recommends that the Carer's Allowance Up-rating (Scotland) Order 2020 [draft] be approved.

4. Subordinate legislation: The Committee will take evidence on the Funeral

Expense Assistance and Young Carer Grants (Up-rating) (Miscellaneous Amendments) (Scotland) Regulations 2020 [draft] from—

Shirley-Anne Somerville, Cabinet Secretary for Social Security and Older People, Veronica Smith, Cross-Cutting Policy Officer, and Niall Wilson, Solicitor, Scottish Government.

5. Subordinate legislation: Shirley-Anne Somerville (Cabinet Secretary for Social Security and Older People) to move—S5M-21019—That the Social Security Committee recommends that the Funeral Expense Assistance and Young Carer Grants (Up-rating) (Miscellaneous Amendments) (Scotland) Regulations 2020 [draft] be approved.

6. Subordinate legislation: The Committee will consider the following negative

instruments—

SSC/S5/20/8/A

Carer's Allowance Up-rating (Miscellaneous Amendments) (Scotland) Regulations 2020 (SSI 2020/32) The Council Tax Reduction (Scotland) Amendment Regulations 2020 (SSI 2020/25) The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2020 (SSI 2020/64)

7. Work programme: The Committee will consider a paper from the Fiscal Framework Working Group.

Anne Peat Clerk to the Social Security Committee

Room T3.60 The Scottish Parliament

Edinburgh Tel: 0131 348 5182

Email: [email protected]

SSC/S5/20/8/A

The papers for this meeting are as follows— Agenda Item 2

Note by the Clerk

SSC/S5/20/8/1

Agenda Item 4

Note by the Clerk

SSC/S5/20/8/2

Agenda Item 6

Note by the Clerk

SSC/S5/20/8/3

Note by the Clerk

SSC/S5/20/8/4

Agenda Item 7

PRIVATE PAPER

SSC/S5/20/8/5 (P)

Social Security Committee

8th Meeting, 2020 (Session 5), Thursday 19 March 2020

Subordinate Legislation

Overview of instrument

1. The Committee has been designated as lead committee for consideration of thefollowing affirmative instrument:

Carer’s Allowance Up-rating (Scotland) Order 2020

2. The Cabinet Secretary for Social Security and Older People will attend themeeting to move the motion to approve.

3. The following papers are available in Annexe A:

The Instrument

Policy Note

Purpose of the Regulations

Carer’s Allowance Uprating

4. The UK Government delivers Carer’s Allowance on behalf of the ScottishGovernment through an agency agreement. This agreement commits theScottish Government to increase the rate of Carer’s Allowance at the same rateas the Department for Work and Pensions.

5. This order will uprate Carer’s Allowance by 1.7% (Consumer Price Index,September 2019). This is to ensure that Carer’s Allowance keeps pace with priceinflation and will increase the weekly rate of Carer’s Allowance from £66.15 to£67.25.

Child Dependency Increase

6. There is a requirement under Social Security Administration Act 1992 thatamounts that remain un-altered are re-stated in the Order. The Carer’s AllowanceUp-rating (Scotland) Order 2020 makes clear that the weekly rate of childdependency increase (CDI) remains unaltered.

7. CDI is a weekly payment of £11.35 payable to a recipient of Carer’s Allowancewho is entitled to receive Child Benefit. Child Dependency Increase wasabolished in 2003 but saved for transitional cases, which affects a small numberof recipients.

Delegated Powers and Law Reform Committee consideration

8. The DPLR Committee considered the regulations at its meeting on 25 February2020 and did not raise any issues.

SSC/S5/20/8/1

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https://www.legislation.gov.uk/sdsi/2020/9780111044230/contents

For Decision

9. Is the Committee content to recommend approval of this instrument?

SSC/S5/20/8/1

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Draft Order laid before the Scottish Parliament under section 150(2) of the Social Security

Administration Act 1992 for approval by resolution of the Scottish Parliament.

D R A F T S C O T T I S H S T A T U T O R Y I N S T R U M E N T S

2020 No.

SOCIAL SECURITY

The Carer’s Allowance Up-rating (Scotland) Order 2020

Made - - - - 2020

Coming into force - - 6th April 2020

The Scottish Ministers make the following Order in exercise of the powers conferred by sections

150(9) and 189(1) and (4) of the Social Security Administration Act 1992(a) and all other powers

enabling them to do so.

As required by section 150(1)(a)(i)(b) of that Act, the Scottish Ministers have made a review and

it appeared to the Scottish Ministers that the general level of prices was greater at the end of the

period under review than it was at the beginning of the period.

In accordance with section 150(2) of that Act a draft of this Order has been laid before and

approved by resolution of the Scottish Parliament.

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Carer’s Allowance Up-rating (Scotland) Order 2020 and

comes into force on 6 April 2020.

(2) In this Order “the 1992 Act” means the Social Security Contributions and Benefits Act

1992(c).

(a) 1992 c.5. The function of making an order to up-rate carer’s allowance was transferred to the Scottish Ministers on commencement of section 81 of the Social Security (Scotland) Act 2018 (asp 9), dealing with carer’s allowance supplement. This is in terms of regulation 4 of the Scotland Act 2016 (Transitional) Regulations 2017 (S.I. 2017/444), which causes section 53(1) and (2) of the Scotland Act 1998 (c.46) to have effect on commencement of a provision which relies on the exception in relation to carer’s benefits in Section F1 of Part 2 of schedule 5 of the Scotland Act 1998. Section81 was commenced on 3 September 2018 by regulation 2 of S.S.I. 2018/250. Accordingly, responsibility for the exercise ofthe functions exercisable by the Secretary of State for Work and Pensions in relation to carer’s allowance as provided for under section 70 of the Social Security Contributions and Benefits Act 1992 (c.4) has transferred to the Scottish Ministers as regards provision of carer’s allowance to people residing in Scotland. The function of up-rating carer’s allowance, and the additional payments of adult dependency increase and child dependency increase, under section 150(9) of the Social Security (Administration) Act 1992 (c.5) also transferred to the Scottish Ministers on that date. Given the transfer is via section 53 of the Scotland Act 1998, the need to obtain Treasury Consent to the making of the Order is removed, by section55 of that Act. Section 189(1) of the Social Security Administration Act 1992 (c.5) was amended by paragraph 109(a) of schedule 7, and schedule 8, of the Social Security Act 1998 (c.14) (“the 1998 Act”), paragraph 57 of schedule 3 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) and schedule 6 of the Tax Credits Act 2002 (c.21). Section 189(4) was amended by section 86, paragraph 109(c) of schedule 7, and schedule 8 of the 1998 Act and article 4 and Part 1 of the schedule of S.I. 2013/252.

(b) A new section 150(1)(a)(i) was substituted by section 6(1) and (2)(a) of the Pensions Act 2007 (c.22). The function, under section 150(1)(a)(i), of reviewing the sums referred to in article 2 falls within the responsibility for carer’s allowance which has transferred to the Scottish Ministers.

(c) 1992 c.4.

Certified copy from legislation.gov.uk Publishing

Annexe ASSC/S5/20/8/1

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Rate of carer’s allowance and date on which change takes effect

2.—(1) In the third column of paragraph 4(a) of the table in Part III of schedule 4 of the 1992

Act (which specifies the weekly rate of carer’s allowance), for “£66.15” substitute “£67.25”.

(2) The amendment made by paragraph (1) takes effect on 6 April 2020, subject to paragraph

(3).

(3) Where arrangements have been made by or on behalf of the Scottish Ministers for carer’s

allowance to be paid on a Wednesday, the amendment takes effect on 8 April 2020.

Rate of increase for qualifying child

3. In the second column of paragraph 9 of the table in Part IV of schedule 4 of the 1992 Act

(which specifies the weekly rate of increase for qualifying child), the weekly rate remains at

£11.35.

Name

A member of the Scottish Government

St Andrew’s House,

Edinburgh

Date

(a) Paragraph 4 was relevantly amended by S.I. 2002/1457 and S.S.I. 2019/102.

Certified copy from legislation.gov.uk Publishing SSC/S5/20/8/1

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EXPLANATORY NOTE

(This note is not part of the Order)

Article 2 of this Order provides for an increase in the weekly rate of payment of carer’s allowance.

Article 3 makes clear that the weekly rate of child dependency increase remains unaltered. This

gives effect to the requirement in section 150(2)(c) of the Social Security Administration Act 1992

(c.5) to re-state amounts that are not being increased. Child dependency increase is an additional

payment payable to a recipient of carer’s allowance who is entitled to receive child benefit in

relation to a child or children. It is payable only to those with transitional protection. Child

dependency increase was abolished by section 1(3)(e) and schedule 6 of the Tax Credits Act 2002

(c.21) but saved for transitional cases by article 3 of the Tax Credits Act 2002 (Commencement

No. 3 and Transitional Provisions and Savings) Order 2003 (S.I. 2003/938). Given that child

benefit is payable, in certain circumstances, until a child reaches the age of 20, child dependency

increase is potentially payable until 2023.

The transitional arrangement for payment of adult dependency increase came to an end for all

cases on 5 April 2020(a). No business and regulatory impact assessment has been prepared for this

Order as no impact upon business, charities or voluntary bodies is foreseen.

(a) See section 15(2) of the Welfare Reform Act 2009 (c.24). Adult dependency increase, provided for in paragraph 9 of the table in Part IV of schedule 4 of the Social Security Contributions and Benefits Act 1992, read with section 90, was an additional payment payable to a recipient of carer’s allowance where the person receiving carer’s allowance lived with a dependent who was an adult.


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POLICY NOTE

THE CARER’S ALLOWANCE UP-RATING (SCOTLAND) ORDER 2020

SSI 2020/XXX

The above instrument will be made in exercise of the powers conferred by sections 150(9)

and 189(1) and (4) of the Social Security Administration Act 1992 („the 1992 Act‟). The

instrument is subject to the affirmative procedure. For the purposes of this note, the

instrument will be referred to as „the 2020 Order‟.

Purpose of the instrument.

This Order provides for an increase in the weekly rate of payment of Carer‟s Allowance

and the restatement of the amount of Child Dependency Increase as an additional weekly

payment payable to some recipients of Carer‟s Allowance.

Policy Objectives

The purpose of the 2020 Order is to uprate the weekly rate of payment of Carer‟s Allowance.

The functions of the Secretary of State for Work and Pensions in relation to Carer‟s

Allowance payable to people resident in Scotland transferred to the Scottish Ministers, with

effect from 3 September 2018. The result is that the Scottish Ministers are responsible for the

provision of Carer‟s Allowance to people who usually live in Scotland. An agency

agreement has been entered with the Secretary of State for Work and Pensions, exercising

powers arising from the Scotland Act 1998 (Agency Arrangements) (Specification) Order

2018. This has the effect that the Secretary of State delivers Carer‟s Allowance on behalf of

the Scottish Ministers. In terms of that agreement, the Scottish Ministers are committed to

uprate Carer‟s Allowance at the same rate as the Department for Work and Pensions (DWP).

It is, though, a matter for the Scottish Ministers to make an order effecting the uprating.

Given the transfer of functions, the Secretary of State has no power to make legislation in

relation to Carer‟s Allowance payable by the Scottish Ministers.

Section 150(1) of the 1992 Act requires a review of Carer‟s Allowance, among other benefits,

and to uprate them where there has been in increase in the general level of prices. It has been

determined that there has been an increase in the general level of prices in the past year.

Accordingly, this Order is brought forward in reliance on section 150(2)(a), to increase the

relevant sums so far as they fall within the competence of the Scottish Ministers. In line with

the approach of the DWP, the uprate to be applied is according to the September 2019

Consumer Price Index (CPI) as published on 16 October 2019, in this case 1.7%. This is the

12-month inflation rate, which compares prices for September 2019 with the same month a

year ago. There is an individual rounding convention for how new rates are calculated with

the payment rounded to the nearest multiple of 5 pence.

The Order provides for an increase in the weekly rate of payment of Carer‟s Allowance from

£66.15 to £67.25.

Child Dependency Increase is an additional weekly payment payable to a recipient of Carer‟s

Allowance who is entitled to receive Child Benefit. While the Child Dependency Increase is

not uprated, the current weekly payment of £11.35 needs to be restated in the Order in

SSC/S5/20/8/1

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compliance with section 150(2)(c) of the 1992 Act. Child Dependency Increase was

abolished in 2003 but saved for transitional cases, which affects a small number of recipients.

The transitional arrangements for payment of Adult Dependency Increase will come to an end

on 5 April 2020. Accordingly, the Order does not include any provision in relation to that

payment.

These figures match the rate that the UK Government will apply to Carer‟s Allowance and

Child Dependency Increase in England and Wales. The increase to Carer‟s Allowance will

take effect on 6 April 2020, unless arrangements have been made for payment on a

Wednesday in which case they will take effect on 8 April 2020. Forecasts show an estimate

of 83,0001 recipients of Carer‟s Allowance in Scotland in 2020/21. The uprate will ensure

that Carer‟s Allowance will keep pace with price inflation.

The Minister for Public Finance and Digital Economy announced the proposed rates of

Carer‟s Allowance for 2020/21 to the Scottish Parliament during the Scottish Budget on 6

February 2020. In accordance with the 1992 Act, a draft of this Order is laid before the

Scottish Parliament for approval by resolution.

Consultation

There is no statutory requirement to consult on this instrument. However, a comprehensive

report2, including analytical evidence, on the measures that could be used to uprate devolved

social security assistance provided under the Social Security (Scotland) Act 2018 was

provided to the Social Security Committee and the Scottish Commission on Social Security

(SCoSS) to allow them to engage on the uprating policy prior to the laying of this legislation.

The analytical report was prepared to provide a detailed review of relevant inflation measures

to inform the options available to uprate devolved social security assistance. The Policy

Paper set out the Scottish Government‟s proposed approach to uprating and recommended the

use of the September CPI with the payment rounded to the nearest 5 pence. The paper also

noted that, during any period when a benefit is delivered by DWP on behalf of Scottish

Ministers under an agency agreement, Scottish Ministers will be obliged to uprate on the

same basis as DWP. SCoSS were supportive of the Scottish Government‟s uprating policy

in the short term and the Social Security Committee noted the Scottish Government‟s

position and had no further views to report beyond the discussion at the Committee on 10

October 20193.

Impact Assessments

The full range of impact assessments were considered and completed where necessary for the

Social Security (Scotland) Bill (which included provision for the Carer‟s Allowance

Supplement) and will take place for each of the devolved benefits e.g. impact assessments

have been published, for Best Start Grant4, Funeral Expense Assistance

5, Young Carer Grant

6.

1 Source: (supplementary table S5.1 Chapter 5) https://www.fiscalcommission.scot/forecasts/

2https://www.parliament.scot/S5_Social_Security/General%20Documents/20190902_CabSecSSOP_to_Convener_uprating_m

easures.pdf 3 http://www.parliament.scot/parliamentarybusiness/report.aspx?r=12322&mode=pdf

4 https://beta.gov.scot/publications/early-years-assistance-consultation-best-start-grant-regulations/pages/9/

5 https://www.gov.scot/publications/consultation-funeral-expense-assistance-regulations/pages/8/

6 https://www.gov.scot/publications/consultation-young-carer-grant-regulations/pages/8/

SSC/S5/20/8/1

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https://www.fiscalcommission.scot/forecasts/

https://www.parliament.scot/S5_Social_Security/General%20Documents/20190902_CabSecSSOP_to_Convener_uprating_measures.pdf


http://www.parliament.scot/parliamentarybusiness/report.aspx?r=12322&mode=pdf

https://beta.gov.scot/publications/early-years-assistance-consultation-best-start-grant-regulations/pages/9/

https://www.gov.scot/publications/consultation-funeral-expense-assistance-regulations/pages/8/

https://www.gov.scot/publications/consultation-young-carer-grant-regulations/pages/8/

Impact assessments for any new Scottish carer benefits will be undertaken at the point where

policy is being developed and regulations are being drafted.

As the uprating of Carer‟s Allowance ensures that the benefits people receive keep pace with

inflation, and maintain the current situation, then it is considered that there is no significant

impact on the private, voluntary or public sector.

Financial Effects

A Financial Memorandum7 was completed prior to introduction of the Social Security

(Scotland) Bill.

The Financial Memorandum considers the costs of uprating and recognises that the

methodology of uprating of benefits for inflation is a source of financial risk as any future

policy differentials between Scotland and the UK for uprating could result in additional

pressures on the Scottish Budget.

However, as this uprate to Carer‟s Allowance for recipients in Scotland is the same as to

recipients in England and Wales this means there will be no impact on the Scottish Budget.

The block grant adjustment methodology detailed in the “Agreement between the Scottish

Government and the UK Government on the Scottish Government‟s fiscal framework”

published on 23 February 2016, continues to link adjustments to the Scottish block grant in

respect of welfare to spending on equivalent policy areas in England and Wales. This means

the Scottish Government is funded to provide the same level of benefits as in England and

Wales.

Scottish Government

Social Security Directorate

February 2020

7 http://www.parliament.scot/S5_Bills/Social%20Security%20(Scotland)%20Bill/SPBill18FMS052017.pdf

SSC/S5/20/8/1

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http://www.parliament.scot/S5_Bills/Social%20Security%20(Scotland)%20Bill/SPBill18FMS052017.pdf





1. The Committee has been designated as lead committee for consideration of thefollowing affirmative instrument:

Funeral Expense Assistance and Young Carer Grants (Up-rating) (MiscellaneousAmendments) (Scotland) Regulations 2020

2. The Cabinet Secretary for Social Security and Older People will attend themeeting to move the motion to approve.

3. The following papers are available in Annexe A:

The Instrument

Policy Note

4. The Scottish Commission on Social Security (SCoSS) published its scrutinyreport on the draft regulations on 14 February 2020. At the Committee’s meetingon 27 February, the Committee noted the report and agreed that it would not takeevidence from SCoSS.

Purpose of the Regulations

5. This instrument amends the Funeral Expense Assistance (Scotland) Regulations2019 and the Carer’s Assistance (Young Carer Grants) (Scotland) Regulations2019.

Funeral Expense Assistance

6. The Instrument uprates by price inflation two of three amounts payable under theFuneral Expense Assistance (Scotland) Regulations 2019. These are the amountof assistance which are payable towards:

funeral costs if the deceased has left in place a pre-paid funeral plan

a fee for removing an active implantable medical device from thedeceased.

7. The standard amount of assistance that is available towards other funeral costs isincreased by more than inflation from £700 to £1,000.

8. This instrument also makes several amendments to Funeral Expense AssistanceRegulations to:

provide clarity on entitlement to a payment in circumstances where a pre-paidfuneral plan is in place.

clarify that entitlement to a lump sum under a funeral plan is to be regardedas an asset of the deceased for the purpose of determining whether the

SSC/S5/20/8/2

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https://www.gov.scot/publications/the-social-security-assistance-funeral-expense-assistance-and-young-carer-grants-up-rating-and-miscellaneous-provisions-scotland-regulations/

https://www.gov.scot/publications/the-social-security-assistance-funeral-expense-assistance-and-young-carer-grants-up-rating-and-miscellaneous-provisions-scotland-regulations/

assets of the deceased are sufficient and available to meet the costs of a funeral.

Young Carer Grants

9. The Regulations increase the amount of the Young Carer Grant so that it is in line with price inflation.

10. The Young Carer Grants Regulations are amended to remove the exclusion from entitlement to the grant to young people subject to immigration control.

Delegated Powers and Law Reform Committee consideration

11. The DPLR Committee considered the regulations at its meeting on 25 February 2020 and did not raise any issues.

For Decision 12. Is the Committee content to recommend approval of this instrument?

SSC/S5/20/8/2

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Draft Regulations laid before the Scottish Parliament under section 96(2) of the Social Security

(Scotland) Act 2018 for approval by resolution of the Scottish Parliament.

D R A F T S C O T T I S H S T A T U T O R Y I N S T R U M E N T S

2020 No.

SOCIAL SECURITY

The Funeral Expense Assistance and Young Carer Grants (Up-

rating) (Miscellaneous Amendments) (Scotland) Regulations

2020

Made - - - - 2020

Coming into force - - 1st April 2020

The Scottish Ministers make the following Regulations in exercise of the powers conferred by

sections 28, 34 and 95 of the Social Security (Scotland) Act 2018(a) and all other powers enabling

them to do so.

In accordance with section 96(2) of that Act, a draft of this instrument has been laid before and

approved by resolution of the Scottish Parliament.

In accordance with section 97(2) of that Act, the Scottish Ministers have informed the Scottish

Commission on Social Security of their proposals, notified the Scottish Parliament that they have

done so and made their proposals publicly available by such means as the Ministers consider

appropriate.

Citation and commencement

1. These Regulations may be cited as the Funeral Expense Assistance and Young Carer Grants

(Up-rating) (Miscellaneous Amendments) (Scotland) Regulations 2020 and come into force on 1

April 2020.

Interpretation

2. In these Regulations—

“the Young Carer Grants Regulations” means the Carer’s Assistance (Young Carer Grants)

(Scotland) Regulations 2019(b), and

“the Funeral Expense Assistance Regulations” means the Funeral Expense Assistance

(Scotland) Regulations 2019(c).

(a) 2018 asp 9. (b) S.S.I. 2019/324. (c) S.S.I. 2019/292.



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Amendment of the Young Carer Grants Regulations

3.—(1) The Young Carer Grants Regulations are amended as follows.

(2) In regulation 7 (further eligibility conditions: non-entitlement to Young Carer Grant while

subject to immigration control), omit paragraph (7).

(3) In regulation 12 (amount and form of young carer grants) in paragraph (1), for “£300”

substitute “£305.10”.

Saving provision: the Young Carer Grants Regulations

4.—(1) Where paragraph (2) applies, regulation 12(1) of the Young Carer Grants Regulations

continues to have effect on and after 1 April 2020 in relation to the amount of assistance to be

given to that individual as it did immediately before that date.

(2) This paragraph applies where the individual’s application for a young carer grant was made

before 1 April 2020.

(3) In this regulation, reference to the individual’s application being made is to be construed in

accordance with regulation 4 (making of applications) of the Young Carer Grants Regulations.

Amendment of the Funeral Expense Assistance Regulations

5.—(1) The Funeral Expense Assistance Regulations are amended as follows.

(2) In regulation 11 (estate of deceased person) in paragraph (3), after “burial club,” insert “pre-

paid funeral plan,”.

(3) In regulation 13 (amount of funeral expense assistance)—

(a) in paragraph (1)(b), for “£700” substitute “£1000”,

(b) in paragraph (4)(b), for “£20” substitute “£20.35”, and

(c) in paragraph (6)—

(i) in the opening words, for “£120” substitute “£122.05”, and

(ii) for sub-paragraph (a) substitute—

“has left in place a pre-paid funeral plan, and”.

(4) In regulation 14 (Deductions from an award of funeral expense assistance) in paragraph

1(b)—

(a) omit “pre-paid funeral plan,” and

(b) omit “plan,” where it occurs later in the paragraph.

Saving and transitional provision: the Funeral Expense Assistance Regulations

6.—(1) Where paragraph (2) applies to an individual—

(a) regulation 13(1)(b) and (4)(b) of the Funeral Expense Assistance Regulations continue to

have effect on and after 1 April 2020 in relation to the amount of assistance to be given to

that individual as they did immediately before that date, and

(b) regulation 13(6) has effect as if only regulation 5(1) (2), (3)(c)(ii) and (4) of these

Regulations is in force.

(2) This paragraph applies where the individual’s application for funeral expense assistance was

made before 1 April 2020.


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(3) In this regulation, reference to the individual’s application being made is to be construed in

accordance with regulation 3 (applications) of the Funeral Expense Assistance Regulations.

Name



Edinburgh

Date


5

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make amendments to the Carer’s Assistance (Young Carer Grants) (Scotland)

Regulations 2019 (S.S.I. 2019/324) (“the Young Carer Grants Regulations”) and the Funeral

Expense Assistance (Scotland) Regulations 2019 (S.S.I. 2019/292) (“the Funeral Expense

Assistance Regulations”).

The Regulations fulfil the duty on the Scottish Ministers to bring forward legislation under section

78(1) of the Social Security (Scotland) Act 2018 (asp 9) (“the Act”) to increase the amount of

social security assistance (that is payable each year under Chapter 2 of the Act) to an amount

which is at least as high as if the existing amounts were adjusted in line with price inflation.

Regulation 2 increases the amount of the Young Carer Grant so that it is in line with price

inflation.

There are three amounts of funeral expense assistance payable under the Funeral Expense

Assistance Regulations. Regulation 5(3)(b) and (3)(c)(i) increases in line with price inflation the

amount of assistance which are payable towards funeral costs if the deceased has left in place a

pre-paid funeral plan and towards a fee for removing an active implantable medical device from

the deceased. Regulation 5(3)(a) increases the flat-rate amount of assistance that is available

towards funeral costs (where the deceased has not left in place a pre-paid funeral plan) to an

amount which is higher than if the amount was adjusted in line with price inflation.

The Regulations also make more substantive amendments to the Young Carer Grants Regulations

and the Funeral Expense Assistance Regulations.

Regulation 3(2) removes the exclusion from entitlement to a young carer grant for young people

subject to immigration control within the meaning of section 115(9) of the Immigration and

Asylum Act 1999 (c.33).

Regulation 5(2) amends regulation 11(3) (estate of deceased person) to provide that when

determining whether a person (“the applicant”) is eligible for funeral expense assistance because

the assets of the deceased person are insufficient or unavailable to meet the costs of the funeral,

the Scottish Ministers can regard lump sums due under a funeral plan as among the deceased

person’s assets.

Regulation 5(3)(c)(ii) amends regulation 13(6)(a) to provide that entitlement to a payment via a

pre-paid funeral plan is the only circumstance which reduces the sum payable as a flat rate

contribution towards funeral costs. Regulation 5(3)(c)(ii) also narrows the circumstances in which

the reduction applies: the reduction only applies where a payment from a pre-paid funeral plan

contributes towards meeting the costs of a funeral, and not where such a contribution is made via

an insurance policy, occupational pension scheme or burial club.

Regulation 5(4) ensures that any funds or contributions that are available towards meeting the

expense of the funeral from a pre-paid funeral plan are not deducted from the amount of funeral

expense assistance for which a person is eligible.

Regulations 4 and 6 make saving and transitional provision so that individuals who make an

application for a young carer grant or funeral expense assistance before 1 April 2020 receive the

amount of assistance that was payable immediately before the rates of assistance were increased.

Business and Regulatory Impact Assessments were prepared in respect of the Young Carer Grants

and Funeral Expense Assistance Regulations. These Regulations do not alter the outcome of those

assessments. Accordingly no new Business and Regulatory Impact Assessments have been

prepared for these Regulations as no impact upon business, charities or voluntary bodies is

foreseen.


6

POLICY NOTE

THE FUNERAL EXPENSE ASSISTANCE AND YOUNG CARER GRANTS (UP-

RATING) (MISCELLANEOUS AMENDMENTS) (SCOTLAND) REGULATIONS

2020

SSI 2020/XXX

The above instrument will be made in exercise of the powers conferred by section 28, 34 and

95 of the Social Security (Scotland) Act 2018 („the 2018 Act‟). The instrument is subject to

the affirmative procedure. For the purposes of this note, the instrument will be referred to as

the „2020 Regulations‟.


The Regulations fulfil the duty on the Scottish Ministers to bring forward legislation under

section 78(1) of the Social Security (Scotland) Act 2018 (“the Act”) to increase the amount

of assistance (payable each year under Chapter 2 of the Act) to an amount which is at least

as high as if the existing amount was adjusted in line with price inflation.

The Regulations increase the amount of the Young Carer Grant so that it is in line with

price inflation (“uprating the Young Carer Grant”). The Regulations also uprate two of

three amounts payable under the Funeral Expense Assistance (Scotland) Regulations 2019

so that they are in line with price inflation; namely, 1) the amount which is payable

towards a fee for removing an active implantable medical device from the deceased, and

2) the amount which is payable towards other funeral costs if the deceased has a pre-paid

funeral plan. The Regulations also increases 3) the standard amount of assistance that is

available towards other funeral costs by more than the impact of inflation from £700 to

£1,000 (“uplifting Funeral Expense Assistance”).

The uprate and uplift come into effect on 1 April 2020 for those who make applications on

or after 1 April 2020.

The Regulations make further amendments to the Carer‟s Assistance (Young Carer Grants)

(Scotland) Regulations 2019 and the Funeral Expense Assistance (Scotland) Regulations

2019.

The Young Carer Grant Regulations are amended to remove the exclusion from entitlement

to the grant for young people subject to immigration control.

The Funeral Support Payment Regulations are amended to provide clarity on entitlement to

a payment in circumstances where a pre-paid funeral plan is in place, as an applicant will

be entitled to the flat rate contribution towards other funeral costs at the lower level of

£122.05. The amendments also narrow the circumstance in which this reduced payment

applies. The reduced payment no longer applies where the deceased has left in place an

insurance policy, occupational pension scheme or burial club . Instead, where the deceased

has in place an insurance policy, occupational pension scheme, or burial club, the

individual will notionally receive the standard amount of assistance (£1,000) with the value

of the scheme and any other assets in the deceased‟s estate then being deducted from the

award.

SSC/S5/20/8/2

7

The Regulations also provide that funds or contributions which are available from a pre-

paid funeral plan are no longer deductible from an award. This is to prevent circumstances

were an entitlement to the lower award of £122.05, because a pre-paid funeral plan was in

place, is reduced further by also applying deductions from the same pre-paid funeral plan.

Finally, the Regulations clarify that entitlement to a lump sum under a funeral plan is to be

regarded as an asset of the deceased for the purpose of determining whether the assets of

the deceased are sufficient and available to meet the costs of a funeral.

Policy Objectives

Section 77 of the 2018 Act requires Scottish Ministers to calculate the inflation-adjusted level

of each amount of assistance prescribed in regulations under any section in Chapter 2 and

report to the Scottish Parliament, before the end of each financial year, on what they have

done or intend to do as a result of the changes to prices. Section 78 of the 2018 Act requires

Scottish Ministers to bring forward legislation before the end of each financial year to replace

these amounts of assistance with amounts which are at least as high as the inflation-adjusted

level of each amount.

It has been determined that there has been an increase in the general level of prices in the past

financial year. Accordingly, the Regulations are brought forward in reliance on section 28

and 34 to uprate the relevant sums according to the September 2019 Consumer Price Index

(CPI) as published on 16 October 2019, in this case 1.7%. This is the 12-month inflation

rate, which compares prices for September 2019 with the same month a year ago. There is an

individual rounding convention for how new rates are calculated and the payment is rounded

to the nearest multiple of 5 pence.

The Order provides for a 1.7% increase to the Young Carer Grant payment (from £300 to

£305.10); a 1.7% increase to what Funeral Support Payment is available towards a fee for

removing an active implantable medical device from the deceased (from £20 to £20.35) and a

1.7% Funeral Support Increase to what Funeral Support Payment is available towards funeral

costs where the deceased has left in place a pre-paid funeral plan (from £120 to £122.05).

Instead of providing the same 1.7% increase for the standard amount of Funeral Support

Payment that is available towards other funeral costs (from £700 to £711.90), this element of

the Funeral Support Payment will be uplifted to a more generous figure of £1,000 for all

applications made on or after 1 April 2020.


devolved social security assistance for 2020-21 to the Scottish Parliament during the Scottish

Budget on 6 February 2020. In accordance with the Social Security (Scotland) 2018 Act, a

draft of these Regulations is laid before the Scottish Parliament for approval by resolution.

The 2020 Regulations allow for the removal of section 7(7) from The Carer‟s Assistance

(Young Carer Grants) (Scotland) Regulations 2019. Section 7(7) stops young carers from

applying for Young Carer Grant if subject to immigration control within the meaning of

section 115(9) of the Immigration and Asylum Act 1999. Removing this exclusion allows

young carers to apply for Young Carer Grant without fear of risking their immigration status.

This helps ensure all young carers are treated with dignity, fairness and respect.

SSC/S5/20/8/2

8

These regulations also amend the Funeral Expense Assistance (Scotland) Regulations 2019 to

clarify when individuals are entitled to the standard rate (£1,000) or the lower flat rate

(£122.05) which are payable towards other funeral expenses.

Entitlement to the other expenses standard rate (£1,000) will apply where the deceased has

left in place provision within:

o an insurance policy;o occupational pension scheme; oro burial club.

In these circumstances deductions will be applied to the notional award from the available

assets in the deceased‟s estate, including from the provision listed above.

Entitlement to the other expenses lower rate (£122.05) will apply where the deceased has left

in place provision within:

o a funeral plan.

In these circumstance deductions will be applied to the notional award from the available

assets in the deceased‟s estate, excluding the plan itself. The intention here is to prevent

circumstances were an entitlement to the lower award of £122.05, because a pre-paid funeral

plan was in place, could be reduced further by also applying deductions in respect of any

available funds or contributions from the same funeral plan.

Finally, the opportunity has been taken to make a minor amendment to regulation 11 of the

Funeral Support Payment Regulations (estate of the deceased) to give better effect to the

original policy intent by clarifying that entitlement to a lump sum under a funeral plan is to

be regarded as an asset of the deceased for the purpose of determining whether the assets of

the deceased are sufficient and available to meet the costs of a funeral.

Consultation



social security assistance was provided to the Social Security Committee and the Scottish

Commission on Social Security on 2 September 2019 to allow them to engage on the uprating

policy prior to the laying of this legislation. The analytical report was prepared to provide a

detailed review of relevant inflation measures to inform the options available to uprate

devolved social security assistance. The Policy Paper set out the Scottish Government‟s

proposed approach to uprating and recommended the use of the September CPI with the

payment rounded to the nearest 5 pence. The Scottish Commission on Social Security

(SCoSS) was supportive of the Scottish Government‟s uprating policy in the short term and

1https://www.parliament.scot/S5_Social_Security/General%20Documents/20190902_CabSecSSOP_to_Conven

er_uprating_measures.pdf

SSC/S5/20/8/2

9



the Social Security Committee noted the Scottish Government‟s position and had no further

views to report beyond the discussion at the Committee on 10 October 20192.

Impact Assessments


Social Security (Scotland) Bill and have been published for Funeral Expense Assistance3 and

Young Carer Grant4. Impact assessments for any new Scottish assistance will be undertaken

at the point where policy is being developed and regulations are being drafted.

As the uprating of Young Carer Grant and Funeral Support Payment ensures that the

assistance people are eligible for in 2020 keeps pace with inflation, and maintains the current

situation, then it is considered that there is no significant impact on the private, voluntary or

public sector.

Financial Effects


(Scotland) Bill.

The Financial Memorandum states that funding for existing benefits will be transferred from

the UK Government under the terms of the Fiscal Framework agreement. The Financial

Memorandum also considers the costs of uprating and recognises that the methodology of

uprating of benefits for inflation is a source of financial risk. This is because any future

policy differentials between Scotland and the UK for the method of uprating could result in

additional pressures on the Scottish Budget.

The Young Carer Grant is a new form of assistance, therefore there is no funding transfer

from the UK government and the cost of this Grant and the uprate will be met from the

existing Scottish Budget. The Funeral Support Payment is not uprated annually by inflation

in England and Wales and therefore there will be no corresponding increase to the funding

transfer from the UK Government. The uprate will be met from the existing Scottish

Budget. The cost of the uprate is included in the benefit expenditure forecasts set out in the

Scottish Fiscal Commission Economic and Fiscal Forecasts February 2020.

The uplift to the flat rate element of the Funeral Support Payment to a more generous figure

of £1,000 will largely be met through a corresponding transfer from the UK Government as a

result of the corresponding increase in the Funeral Expense Payment rate in England and

Wales. However, as eligibility for the Funeral Support Payment in Scotland was expanded

by around 40% this creates a funding difference which will be met from the existing Scottish

Budget.

Scottish Government


February 2020

2 http://www.parliament.scot/parliamentarybusiness/report.aspx?r=12322&mode=pdf




SSC/S5/20/8/2

10









1. The Committee has been designated lead Committee for the following negativeinstrument:

Carer’s Allowance Up-rating (Miscellaneous Amendments) (Scotland)Regulations 2020 (SSI 2020/32)

2. The Instrument and Policy Note are attached at Annexe A.

Purpose 1. The purpose of these Regulations is to increase the amount an eligible person for

Carer’s Allowance can earn in a given week without being considered to begainfully employed, and therefore not entitled to receive Carer’s Allowance. Thethreshold amount will increase from £123 to £128.

2. As with the Carer’s Allowance Order, these changes reflect the equivalentchanges made in England and Wales due to the agency agreement between theUK and Scottish Governments.

3. The Regulations also increase the amount which the partner of a personreceiving Carer’s Allowance can earn each week without the person receiving theCarer’s Allowance losing any entitlement to an additional payment in the form ofChild Dependency Increase1.

Delegated Powers and Law Reform Committee consideration 3. The DPLR Committee considered the instrument at its meeting on 25 February

and did not report any issues.

For Decision

4. The Committee is invited to consider and note the instrument.

1 Child Dependency Increase is payable where a person receiving Carer’s Allowance is entitled to receive Child

Benefit in relation to a child or children. Child Dependency Increase was abolished in 2003 but saved for transitional cases which affects a small number of recipients, potentially up to 2023.

SSC/S5/20/8/3

1

http://www.legislation.gov.uk/ssi/2020/32/contents/made

http://www.legislation.gov.uk/ssi/2020/32/contents/made

S C O T T I S H S T A T U T O R Y I N S T R U M E N T S

2020 No. 32

SOCIAL SECURITY

The Carer’s Allowance Up-rating (Miscellaneous Amendments)

(Scotland) Regulations 2020

Made - - - - 18th February 2020

Laid before the Scottish Parliament 19th February 2020

Coming into force - - 6th April 2020


sections 70(8), 90, 122(1) and 175(1) and (3) of the Social Security Contributions and Benefits

Act 1992(a) and all other powers enabling them to do so.


1. These Regulations may be cited as the Carer’s Allowance Up-rating (Miscellaneous

Amendments) (Scotland) Regulations 2020 and come into force on 6 April 2020.

Amendment of the Social Security (Invalid Care Allowance) Regulations 1976

2. In regulation 8(1) of the Social Security (Invalid Care Allowance) Regulations 1976(b)

(circumstances in which a person is or is not to be treated as gainfully employed) for “£123”, in

both places where it occurs, substitute “£128”.

(a) 1992 c.4. The function of prescribing the circumstances in which a person is or is not to be treated as gainfully employed,for the purpose of section 70(1)(b) of the Social Security Contributions and Benefits Act 1992 (“the 1992 Act”), transferredto the Scottish Ministers on the commencement of section 81 of the Social Security (Scotland) Act 2018 (asp 9), dealing with carer’s allowance supplement. The same applies to the function in section 90 of the 1992 Act to make regulations setting out entitlement to child dependency increase, including earning limits. In both cases the transfer is in terms of regulation 4 of S.I. 2017/444, which causes section 53(1) and (2) of the Scotland Act 1998 (c.46) to have effect upon commencement of a provision which relies on the exception in relation to carer’s benefits in Section F1 of Part 2 of schedule 5 of the Scotland Act 1998. Section 81 was commenced on 3 September 2018 by regulation 2 of S.S.I. 2018/250. Accordingly, responsibility for the exercise of the functions exercisable by the Secretary of State in relation to carer’sallowance has transferred to the Scottish Ministers as regards provision of carer’s allowance to people residing in Scotland. The setting of relevant earnings limits falls within that responsibility. The requirement to consult the Social Security Advisory Committee in section 172 of the 1992 Act does not apply to the Scottish Ministers by virtue of section 33 of the Scotland Act 2016 (c.11). Section 90 of the 1992 Act was relevantly amended by paragraph 26 of schedule 8 of the Welfare Reform and Pensions Act 1999 (c.30) and by paragraphs 1 and 2 of the schedule of S.I. 2002/1457. Section 90 was repealed by schedule 6 of the Tax Credits Act 2002 (c.21) in respect of child dependency increase, subject to savings provision in article 3 of S.I. 2003/938. Section 90 of the 1992 Act was repealed for remaining purposes, namely in relation to adult dependency increase, by Part 2 of schedule 7 of the Welfare Reform Act 2009 (c.24), subject to saving by section 15(2)(b) of that Act. Section 122(1) of the 1992 Act is cited for the meaning assigned to the word “prescribed”. An amendment was made to section 175(1) which is not relevant to these Regulations.

(b) S.I. 1976/409. Regulation 8(1) was relevantly amended by S.I. 1996/2744, S.I. 2002/2497 and S.S.I. 2019/21.



2

Amendment of the Social Security Benefit (Dependency) Regulations 1977

3. In paragraph 2B of schedule 2 of the Social Security Benefit (Dependency) Regulations

1977(a) (increase of carer’s allowance for child dependants – earnings limits)—

(a) for “£240”, in both places where it occurs, substitute “£245”, and

(b) for “£32” substitute “£33”.

SHIRLEY-ANNE SOMERVILLE



Edinburgh

18th February 2020

(a) S.I. 1977/343. Paragraph 2B was inserted by S.I. 1984/1699 and last amended by S.S.I. 2019/21.


3

EXPLANATORY NOTE


These Regulations amend earnings limits used to determine entitlement to carer’s allowance and

entitlement to additional payments payable to carer’s allowance recipients, so far as payment is the

responsibility of the Scottish Ministers. This adjustment relates to the up-rating, by the Scottish

Ministers, of the weekly rate of payment of carer’s allowance (see the Carer’s Allowance Up-

rating (Scotland) Order 2020 (S.S.I. 2020/XXX)).

Regulation 2 amends regulation 8 of the Social Security (Invalid Care Allowance) Regulations

1976 (S.I. 1976/409). It increases the amount which a person eligible for payment of carer’s

allowance from the Scottish Ministers can earn in a given week without being deemed to be

gainfully employed.

Regulation 3 amends schedule 2 of the Social Security Benefit (Dependency) Regulations 1977

(S.I. 1977/343). The effect is to increase the amount which the partner of a person eligible for

payment of carer’s allowance from the Scottish Ministers can earn in a given week without the

person receiving carer’s allowance losing any entitlement to what is payable by way of an

additional payment where that person is entitled to receive child benefit. This addition is known as

child dependency increase and is payable only to those with transitional protection. Child

dependency increase was abolished by section 1(3)(e) and schedule 6 of the Tax Credits Act 2002

(c.21) but saved for transitional cases by article 3 of the Tax Credits Act 2002 (Commencement

No. 3 and Transitional Provisions and Savings) Order 2003 (S.I. 2003/938).

No business and regulatory impact assessment has been prepared for these Regulations as no

impact upon business, charities or voluntary bodies is foreseen.


4

POLICY NOTE

THE CARER’S ALLOWANCE UP-RATING (MISCELLANEOUS AMENDMENTS)

(SCOTLAND) REGULATIONS 2020

SSI 2020/32

The above instrument will be made in exercise of the powers conferred under sections 70(8),

90, 122(1) and 175(1) and (3) of the Social Security Contributions and Benefits Act 1992

(„the 1992 Act‟). The instrument is subject to the negative resolution procedure and will

come into force on 6 April 2020. For the purposes of this note, the instrument will be

referred to as „the 2020 Regulations‟.


These Regulations increase the amount which a person eligible for payment of Carer‟s

Allowance from the Scottish Ministers can earn in a given week without being considered

to be gainfully employed and, therefore, not entitled to receive Carer‟s Allowance. They

also increase the amount which the partner of a person receiving Carer‟s Allowance can

earn each week without the person receiving the Carer‟s Allowance losing any entitlement

to an additional payment in the form of Child Dependency Increase. Child Dependency

Increase is payable where a person receiving Carer‟s Allowance is entitled to receive Child

Benefit. Child Dependency Increase was abolished in 2003 but saved for transitional cases

which affects a small number of recipients.

Policy Objectives

The purpose of the 2020 Regulations is to increase the Carer‟s Allowance earnings threshold

and the earnings threshold for Child Dependency Increase for a first child and additional

amount for each subsequent child.

The functions of the Secretary of State for Work and Pensions in relation to Carer‟s

Allowance payable to people resident in Scotland were transferred to the Scottish Ministers

with effect from 3 September 2018. The result is that the Scottish Ministers are responsible

for the provision of Carer‟s Allowance to people who usually live in Scotland. An agency

agreement has been entered with the Secretary of State for Work and Pensions, exercising

powers arising from the Scotland Act 1998 (Agency Arrangements) (Specification) Order

2018. This has the effect that the Secretary of State delivers Carer‟s Allowance on behalf of

the Scottish Ministers. In terms of that agreement, the Scottish Ministers are committed to

increase the Carer‟s Allowance earnings threshold at the same rate as the Department for

Work and Pensions (DWP). It is, though, for the Scottish Ministers to make regulations to

effect the increase. Given the transfer of functions, the Secretary of State for Work and

Pensions has no power to make legislation in relation to Carer‟s Allowance payable by the

Scottish Ministers.

There is no mandatory requirement in legislation to increase the Carer‟s Allowance earnings

threshold but any increase will match the rate that the UK Government will apply to the

earnings threshold in England and Wales.

A person is entitled to Carer‟s Allowance for any day on which that person is engaged in

caring for a severely disabled person provided that, amongst other things, the person claiming

Carer‟s Allowance is not gainfully employed. A person is only to be treated as gainfully

employed on any day in a week if their total earnings in the immediately preceding week

SSC/S5/20/8/3

5

have exceeded a prescribed amount. If they have exceeded that amount, the person will be

treated as being gainfully employed on every day of the next week. The Regulations raise the

prescribed amount from £123.00 to £128.00.

There is also an earnings threshold for entitlement to payment of Child Dependency

Increase for a first child and for each subsequent child. This is an additional payment payable

where a person who is receiving Carer‟s Allowance is entitled to receive Child Benefit.

Child Dependency Increase was abolished in 2003 but saved for transitional cases. The

earnings threshold relates to weekly earnings by the partner of the person who is entitled to

the Child Dependency Increase. The limit in relation to the first child is increased from

£240.00 to £245.00 and for each subsequent child is increased from £32.00 to £33.00. For

each subsequent child, the limit relates to each complete sum of £33.00 by which the

earnings limit for the first child is exceeded. These figures match the rate that the UK

Government will apply to the earnings threshold for Child Dependency Increase in England

and Wales. There is again no mandatory requirement in legislation to increase the earnings

threshold for Child Dependency Increase each year.

The increases will take effect on 6 April 2020 and forecasts show an estimate of 83,0001

recipients of Carer‟s Allowance in Scotland in 2020/21.


Carer‟s Allowance for 2020/21 to the Scottish Parliament during the Scottish Budget on 6

February 2020.

Consultation



social security assistance provided under the Social Security (Scotland) Act 2018 was

provided to the Social Security Committee and the Scottish Commission on Social Security

to allow them to engage on the uprating policy prior to the laying of this legislation. The

analytical report was prepared to provide a detailed review of relevant inflation measures to

inform the options available to uprate devolved social security assistance. The Policy Paper

set out the Scottish Government‟s proposed approach to uprating and recommended the use

of the September CPI with the payment rounded to the nearest 5 pence. The paper also noted

that, during any period when a benefit is delivered by DWP on behalf of Scottish Ministers

under an agency agreement, Scottish Ministers will be obliged to uprate on the same basis as

DWP. The Scottish Commission on Social Security (SCoSS) was supportive of the Scottish

Government‟s uprating policy in the short term and the Social Security Committee noted the

Scottish Government‟s position and had no further views to report beyond the discussion at

the Committee on 10 October 20193.

Impact Assessments


Social Security (Scotland) Bill (which included provision for the Carer‟s Allowance

Supplement) and will take place for each of the devolved benefits e.g. impact assessments

1 Source: (supplementary table S5.1 from Chapter 5): https://www.fiscalcommission.scot/forecasts/

2https://www.parliament.scot/S5_Social_Security/General%20Documents/20190902_CabSecSSOP_to_Conven

er_uprating_measures.pdf 3 http://www.parliament.scot/parliamentarybusiness/report.aspx?r=12322&mode=pdf

SSC/S5/20/8/3

6

https://www.fiscalcommission.scot/forecasts/




have been published, for Best Start Grant4, Funeral Expense Assistance

5, Young Carer Grant

6.

Impact assessments for any new Scottish carer‟s benefits will be undertaken at the point

where policy is being developed and regulations are being drafted.

Financial Effects


(Scotland) Bill.

The Financial Memorandum considers the costs of uprating and recognises that the

methodology of uprating of benefits for inflation is a source of financial risk as any future

policy differentials between Scotland and the UK for uprating could result in additional

pressures on the Scottish Budget.

However, as this uprate to Carer‟s Allowance for recipients in Scotland is the same as to

recipients in England and Wales this means there will be no impact on the Scottish Budget.

The block grant adjustment methodology detailed in the “Agreement between the Scottish

Government and the UK Government on the Scottish Government‟s fiscal framework”

published on 23 February 2016, continues to link adjustments to the Scottish block grant in

respect of welfare to spending on equivalent policy areas in England and Wales. This means

the Scottish Government is funded to provide the same level of benefits as in England and

Wales.

Scottish Government


February 2020

4 https://beta.gov.scot/publications/early-years-assistance-consultation-best-start-grant-regulations/pages/9/




SSC/S5/20/8/3

7

https://beta.gov.scot/publications/early-years-assistance-consultation-best-start-grant-regulations/pages/9/








1. There are two negative Council Tax Reduction instruments for consideration bythe Committee:

The Council Tax Reduction (Scotland) Amendment Regulations 2020 (SSI

2020/25)

The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2020

(SSI 2020/64)

2. This Committee has been designated lead and the Instruments and Policy Notesare attached at Annexe A.

3. There are two instruments due to changes being made by the DWP after theoriginal instrument was laid. The (No.2) instrument amends the regulations toaddress these changes, as well as fixing drafting errors in the original instrumentthat were reported by DPLR Committee.

Purpose The Council Tax Reduction (Scotland) Amendment Regulations 2020

4. This instrument makes amendments to the Council Tax Reduction (Scotland)Regulations 2012 and the Council Tax Reduction (State Pension Credit)(Scotland) Regulations 2012.

5. The instrument uprates certain allowances and premiums in the principalRegulations in line with equivalent changes made by the Department for Workand Pensions to Housing Benefit1.

6. The applicable allowances and premiums set out in Schedule 1 of each of theprincipal regulations are uprated as follows: for persons of pension age - by 3.9% (the annual growth in earnings to July

2019

for those of working age - by 1.7% (The rate of Consumer Price Index,

September 2019).

7. The instrument and policy note list the specific changes in more detail.

1 Housing benefit is used as it is the benefit that most closely reflects the abolished Council Tax Benefit (CTB).

CTB was abolished by the UK Government and led to the Scottish Government introducing the Council Tax Reduction Scheme.

SSC/S5/20/8/4

1

http://www.legislation.gov.uk/ssi/2020/25/introduction/made

http://www.legislation.gov.uk/ssi/2020/64/made

The Council Tax Reduction (Scotland) Amendment (No.2) Regulations 2020

8. Some people who were moved from certain social security benefits to

Employment and Support Allowance (ESA) are eligible for a transitional

allowance. This allowance was due to end on 5th April 2020, but this stop date

has now been removed by the UK Government.

9. This instrument amends the principal regulations to reflect this change and

removes references to the ‘5th April 2020’ date from the Regulations.

10. The Regulations also amend a drafting error that was reported by the DPLRCommittee on 25 February.

Delegated Powers and Law Reform Committee consideration The Council Tax Reduction (Scotland) Amendment Regulations 2020

11. The DPLR Committee considered the instrument at its meeting on 25 February

and reported under general reporting ground for a drafting error.

The Council Tax Reduction (Scotland) Amendment (No.2) Regulations 2020

12. The DPLR Committee considered the instrument at its meeting on 10 March and

reported no issues. The DPLR Committee welcomes that this instrument corrects

cross-referencing errors in regulations 3 and 4 of the Council Tax Reduction

(Scotland) Amendment Regulations 2020, as reported by the Committee at its

meeting on 25 February 2020.

For Decision

13. The Committee is invited to consider and note both instruments.

SSC/S5/20/8/4

2


2020 No. 25

COUNCIL TAX

The Council Tax Reduction (Scotland) Amendment Regulations

2020


Laid before the Scottish Parliament 10th February 2020

Coming into force - - 1st April 2020


sections 80 and 113(1) and paragraph 1 of schedule 2 of the Local Government Finance Act

1992(a) and all other powers enabling them to do so.

PART 1

General


1. These Regulations may be cited as the Council Tax Reduction (Scotland) Amendment

Regulations 2020 and come into force on 1 April 2020.

PART 2

Amendment of the Council Tax Reduction (Scotland) Regulations 2012

2. The Council Tax Reduction (Scotland) Regulations 2012(b) are amended in accordance with

regulations 3 to 10.

(a) 1992 c.14. Section 80 and paragraph 1 of schedule 2 were amended by paragraph 176 of schedule 13 of the LocalGovernment etc. (Scotland) Act 1994 (c.39). There are other amendments to section 80 and amendments to section 113(1) that are not relevant to these Regulations. The functions of the Secretary of State, in so far as within devolved competence, were transferred to the Scottish Ministers by virtue of section 53 of the Scotland Act 1998 (c.46).

(b) S.S.I. 2012/303, relevantly amended by S.S.I. 2013/48, S.S.I. 2013/142, S.S.I. 2013/287, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81, S.S.I 2016/253, S.S.I. 2017/41, S.S.I. 2018/69, S.S.I. 2018/295, S.S.I. 2019/29 and S.S.I. 2019/325.



3

Uprating

3. In regulation 21 (applicable amount)(a), in paragraph (f) after “any” insert “transitional

family premium determined in accordance with regulation 23A (transitional family premium) and

of any”.

4. In regulation 22 (applicable amount: polygamous marriages)(b), in paragraph (g) after “any”

insert “transitional family premium determined in accordance with regulation 23A (transitional

family premium) and of any”.

5. After regulation 22 insert—

“Transitional family premium

22A. Where an applicant is entitled to an amount by virtue of regulation 2 (transitional

provision) of the Council Tax Reduction (Scotland) Amendment Regulations 2016 (“a

transitional family premium”)(c), that amount is—

(a) £22.20 if that is the amount the applicant was entitled to on 31 March 2020, and

(b) in all other cases, £17.60.”.

6. In regulation 23 (applicable amount: persons who have an award of universal credit), in

paragraph (2A)(d)—

(a) in sub-paragraph (b) for “£16.73” substitute “£17.07”, and

(b) in sub-paragraph (c) for “£53.47” substitute “£54.32”.

7. In regulation 67 (non-dependant deductions)(e)—

(a) in paragraph (1)—

(i) in sub-paragraph (a) for “£12.55” substitute “£12.80”, and

(ii) in sub-paragraph (b) for “£4.15” substitute “£4.25”, and

(b) in paragraph (2)—

(i) in sub-paragraph (a) for “£209.00” substitute “£213.00”,

(ii) in sub-paragraph (b) for—

(aa) “£209.00” substitute “£213.00”,

(bb) “£363.00” substitute “£370.00”, and

(cc) “£8.30” substitute “£8.45”, and

(iii) in sub-paragraph (c) for—

(aa) “£363.00” substitute “£370.00”,


(cc) “£10.50” substitute “£10.70”.

8. In schedule 1 (applicable amount)(f)—

(a) in the table in paragraph 1 (applicable amount for the purposes of regulations 21(a) and

22(a) and (b)), for—

(a) Regulation 21 was amended by S.S.I. 2016/81. (b) Regulation 22 was amended by S.S.I. 2016/81. (c) S.S.I. 2016/81. (d) Regulation 23 was amended by S.S.I. 2013/48, S.S.I. 2013/287, S.S.I. 2017/41 and S.S.I. 2019/325. (e) Regulation 67 was relevantly amended by S.S.I. 2013/48, S.S.I. 2013/142, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81,

S.S.I. 2017/41, S.S.I. 2018/69 and S.S.I. 2019/29. (f) Schedule 1 was relevantly amended by S.S.I. 2013/48, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81, S.S.I. 2016/253, S.S.I.

2017/41, S.S.I. 2018/69 and S.S.I. 2019/29.


4

(i) “£73.10” in each place where it occurs substitute “£74.35”,

(ii) “£57.90” substitute “£58.90”, and

(iii) “£114.85” substitute “£116.80”,

(b) in paragraph 3 (applicable amount for the purposes of regulations 21(b) and 22(c)), for

“£83.63” in both places where it occurs substitute “£85.34”,

(c) in the table in paragraph 17 (amounts of disability premiums), in the entry—

(i) “Disability premium” for—

(aa) “£34.35” substitute “£34.95”, and

(bb) “£48.95” substitute “£49.80”,

(ii) “Severe disability premium” for—

(aa) “£65.85” in both places where it occurs substitute “£66.95”, and

(bb) “£131.70” substitute “£133.90”,

(iii) “Disabled child premium” for “£64.19” substitute “£65.52”,

(iv) “Carer premium” for “£36.85” substitute “£37.50”, and

(v) “Enhanced disability premium” for—

(aa) “£26.04” substitute “£26.60”,


(cc) “£24.10” substitute “£24.50”,

(d) in paragraph 23 (amount of work-related activity component), for “£29.05” substitute

“£29.55”, and

(e) in paragraph 24 (amount of support component), for “£38.55” substitute “£39.20”.

9. In schedule 2 (amount of alternative maximum council tax reduction), in the table in

paragraph 1(a)—

(a) in entry (b)(i) for “£205.00” substitute “£209.00”, and

(b) in entry (b)(ii) for—

(i) “£205.00” substitute “£209.00”, and

(ii) “£268.00” substitute “£273.00”.

Disregard of historical child abuse in care discretionary payments

10. In schedule 5 (capital to be disregarded), after paragraph 70(b) insert—

“71. Any ex gratia payment made at the discretion of the Scottish Ministers from the

Advance Payment Scheme which the Scottish Ministers set up in respect of cases of

historical child abuse in care.”.

PART 3

Amendment of the Council Tax Reduction (State Pension Credit) (Scotland)

Regulations 2012

11. The Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012(c) are

amended in accordance with regulations 12 to 15.

(a) The table in paragraph 1 of schedule 2 was amended by S.S.I. 2013/48, S.S.I. 2013/287, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81, S.S.I. 2017/41, S.S.I. 2018/69 and 2019/29.

(b) Paragraph 70 was inserted by S.S.I. 2019/325. (c) S.S.I. 2012/319, relevantly amended by S.S.I. 2013/49, S.S.I. 2013/142, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81,

S.S.I. 2016/253, S.S.I. 2017/41, S.S.I. 2018/69 and S.S.I. 2019/29.


5

Uprating

12. In regulation 20 (applicable amount)(a), omit the “and” after paragraph (b) and after

paragraph (d) insert—

“, and

(e) the amount of £17.60 if the applicant is entitled to an amount (“a transitional

family premium”) by virtue of regulation 2 (transitional provision) of the Council

Tax Reduction (Scotland) Amendment Regulations 2016(b).”.

13. In regulation 48 (non-dependant deductions)(c)—

(a) in paragraph 1—

(i) in sub-paragraph (a) for “£12.55” substitute “£12.80”, and

(ii) in sub-paragraph (b) for “£4.15” substitute “£4.25”, and

(b) in paragraph 2—

(i) in sub-paragraph (a) for “£209.00” substitute “£213.00”,

(ii) in sub-paragraph (b) for—

(aa) “£209.00” substitute “£213.00”,


(cc) “£8.30” substitute “£8.45”, and

(iii) in sub-paragraph (c) for—

(aa) “£363.00” substitute “£370.00”,


(cc) “£10.50” substitute “£10.70”.

14. In schedule 1 (applicable amount)(d)—

(a) in the table in paragraph 2 (personal allowances)—

(i) in entry (1)(b) for “£181.00” substitute “£187.75”,

(ii) in entry (2)(b) for “£270.60” substitute “£280.85”,

(iii) in entry (4)(a) for “£270.60” substitute “£280.85”, and

(iv) in entry (4)(b) for “£89.60” substitute “£93.10”,

(b) in the table in paragraph 3 (applicable amount for the purposes of regulation 20(b)), for

“£83.63” in both places where it occurs substitute “£85.34”, and

(c) in the table in paragraph 13 (amount of disability premium)—

(i) in entries (1)(a) and (1)(b)(i) for “£65.85” substitute “£66.95”,

(ii) in entry (1)(b)(ii) for “£131.70” substitute “£133.90”,

(iii) in entry (2) for “£26.04” substitute “£26.60”,

(iv) in entry (3) for “£64.19” substitute “£65.52”, and

(v) in entry (4) for “£36.85” substitute “£37.50”.

15. In schedule 5 (amount of alternative maximum council tax reduction), in the table in

paragraph 1—

(a) in entry (b)(i) for “£205.00” substitute “£209.00”, and

(a) Regulation 20 was amended by S.S.I. 2016/81. (b) S.S.I. 2016/81, (c) Regulation 48 was relevantly amended by S.S.I. 2013/49, S.S.I. 2013/142, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81,

S.S.I. 2017/41, S.S.I. 2018/69 and S.S.I. 2019/29. (d) Schedule 1 was relevantly amended by S.S.I. 2013/49, S.S.I. 2014/35, S.S.I. 2015/46, S.S.I. 2016/81, S.S.I. 2016/253, S.S.I.

2017/41, S.S.I. 2018/69 and 2019/29.


6

(b) in entry (b)(ii)—

(i) for “£205.00” substitute “£209.00”, and

(ii) for “£268.00” substitute “£273.00”.

KATE FORBES

Authorised to sign by the Scottish Ministers


Edinburgh

6th February 2020


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EXPLANATORY NOTE


These Regulations amend the Council Tax Reduction (Scotland) Regulations 2012 (“the Working

Age Regulations”) and the Council Tax Reduction (State Pension Credit) (Scotland) Regulations

2012 (“the Pension Age Regulations”). Regulations 3 to 10 amend the Working Age Regulations

and regulations 12 to 15 amend the Pension Age Regulations.

Regulations 3 to 9 uprate figures in the Working Age Regulations.

Regulations 3 to 5 uprate a “transitional family premium” that was ended for new applicants by

the Council Tax Reduction (Scotland) Amendment Regulations 2016 (S.S.I. 2016/81), but has

continued to be paid to some persons as a result of a transitional provision in those Regulations.

The amount is uprated from £17.45 to £17.60. Some persons are entitled to be paid that premium

at a higher rate of £22.20; that amount is not uprated.

Regulations 6 to 9 uprate other figures used to calculate the amount of council tax reduction that

an applicant is entitled to receive under the Working Age Regulations.

The Scottish Ministers have set up a discretionary payment scheme to make ex gratia payments to

survivors of historical child abuse in care. Regulation 10 amends schedule 5 of the Working Age

Regulations so that such payments are disregarded in the calculation of capital for the purposes of

council tax reduction under those Regulations.

Regulations 12 to 15 uprate in a similar way figures used to calculate the amount of council tax

reduction that an applicant is entitled to receive under the Pension Age Regulations. Those

Regulations provide for a transitional family premium to be paid only at a single rate.


8

POLICY NOTE

THE COUNCIL TAX REDUCTION (SCOTLAND) AMENDMENT REGULATIONS 2020

SSI 2020/25

1. The above instrument is made in exercise of the powers conferred by sections 80and 113(1) and paragraph 1 of schedule 2 of the Local Government Finance Act1992. It is subject to the negative procedure.

The purpose of these Regulations is to uprate in the Council Tax Reduction (CTR) scheme various allowances, premiums and deductions; and to fully disregard in the scheme advance payments to those who experienced historical child abuse in care.

Policy Objectives

2. This instrument amends the Council Tax Reduction (Scotland) Regulations 2012(“the Working Age Regulations”) and the Council Tax Reduction (State PensionCredit) (Scotland) Regulations 2012 (“the Pension Age Regulations”).

3. When Council Tax Benefit (CTB) was abolished by the UK Government theScottish Government introduced the Council Tax Reduction (CTR) scheme. CTRreduces a household’s council tax liability by taking into account their circumstances,capital, and income. When CTR was introduced the Scottish Government made acommitment that no one would be worse off under CTR than they would be if CTBhad continued. These Regulations maintain that policy objective by uprating variousallowances, premiums and deductions on the same basis as has been takenin relation to Housing Benefit (the benefit that most closely reflects the abolishedCTB).

4. This instrument uprates allowances and premiums as set out in schedule 1 ofeach of the Working Age Regulations and the Pension Age Regulations. For thoseof pension age these generally increase by 3.9% (annual growth in earnings to July2019), and for those of working age by 1.7% (the rate of Consumer Price IndexSeptember 2019).

5. This instrument uprates the income thresholds set out in schedule 2 (alternativemaximum CTR) of the Working Age Regulations and the equivalent schedule 5 ofthe Pension Age Regulations by 1.7% (the rate of Consumer Price Index September2019).

6. This instrument increases the income thresholds for non-dependant deductionsby 3.9% (the annual increase in earnings growth to July 2019) and the non-dependant deductions amounts by 1.7% (Consumer Price Index September 2019).

7. This instrument increases the Applicable Amount used in calculating the CTR ofpeople who receive Universal Credit, as set out in regulation 23(2)(a) of the WorkingAge Regulations, in line with the equivalent Universal Credit increases.

SSC/S5/20/8/4

9

8. The Family Premium ended for new applicants in 2016 and Lone Parent FamilyPremium several years before that. Existing CTR recipients who received thesepremiums have continued to do so, as long as they have continued to meet theeligibility criteria. The number of households still receiving these premiums is verylow, with very small numbers now receiving the latter.

9. This instrument amends regulation 21 and 22 of the Working Age Regulations,and inserts a new regulation 22A, to increase the Family Premium from £17.45 to£17.60. The Lone Parent Family Premium will not increase and will remain at £22.20for its few remaining recipients. This is in line with the Housing Benefit Regulations.

10. This instrument amends regulation 20 of the Pension Age Regulations toincrease the Family Premium from £17.45 to £17.60. The Lone Parent FamilyPremium does not exist in the pension-age scheme.

11. This instrument amends schedule 5 of the Working Age Regulations so thatCTR fully disregards as capital payments made by the Scottish GovernmentAdvance Payment scheme (paid to those who suffered historical child abuse incare). The scheme already disregards such payments as income (under Schedule 4,paragraph 18 as personal injury payments).

12. No amendment is required to the Pension Age Regulations for these paymentsas schedule 4 paragraph 17 disregards payments in consequence of personal injuryas capital and regulation 27 does not include these payments as income.

Consultation

13. No formal consultation was required to be carried out in relation to theseRegulations.

Impact Assessments and Financial Effects

14. The instrument is an annual update amending existing principal Regulations.There are therefore no specific impact assessments. The uprating of CTR will nothave a material impact on the cost of the scheme.

Local Government and Communities Scottish Government 6 February 2020

SSC/S5/20/8/4

10


2020 No. 64

COUNCIL TAX

The Council Tax Reduction (Scotland) Amendment (No. 2)

Regulations 2020


Laid before the Scottish Parliament 2nd March 2020

Coming into force - - 31st March 2020


sections 80 and 113(1) and paragraph 1 of schedule 2 of the Local Government Finance Act

1992(a) and all other powers enabling them to do so.


1. These Regulations may be cited as the Council Tax Reduction (Scotland) Amendment (No. 2)

Regulations 2020 and come into force on 31 March 2020.

Continuation of transitional addition

2. In Part 6 of schedule 1 (applicable amount: transitional addition) of the Council Tax

Reduction (Scotland) Regulations 2012(b)—

(a) omit paragraph 25(2)(e),

(b) in paragraph 26—

(i) in sub-paragraph (1)(b) omit “but before 5th April 2020”,

(ii) omit sub-paragraph (3)(e), and

(c) in paragraph 27—

(i) in sub-paragraph (1)(b) omit “before 5th April 2020”,

(ii) omit sub-paragraph (3)(e).

Correction of reference to transitional family premium

3. The Council Tax Reduction (Scotland) Amendment Regulations 2020(c) are amended as

follows—

(a) in regulation 3 for “23A” substitute “22A”, and

(a) 1992 c.14. Section 80 and paragraph 1 of schedule 2 were amended by paragraph 176 of schedule 13 of the LocalGovernment etc. (Scotland) Act 1994 (c.39). There are other amendments to section 80 and amendments to section 113(1) that are not relevant to these Regulations. The functions of the Secretary of State, in so far as within devolved competence, were transferred to the Scottish Ministers by virtue of section 53 of the Scotland Act 1998 (c.46).

(b) S.S.I. 2012/303, relevantly amended by S.S.I. 2013/48. (c) S.S.I. 2020/25.


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(b) in regulation 4 for “23A” substitute “22A”.

BEN MACPHERSON

Authorised to sign by the Scottish Ministers


Edinburgh

27th February 2020


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EXPLANATORY NOTE


These Regulations amend the Council Tax Reduction (Scotland) Regulations 2012 to provide for

continuation of a transitional addition credited to some persons who transferred from other types

of social security assistance to employment and support allowance. The transitional allowance will

no longer end on 5 April 2020, but will cease when the allowance reduces to nil or when the

person’s entitlement to employment and support allowance ends.

These Regulations also amend the Council Tax Reduction (Scotland) Amendment Regulations

2020 to correct a minor error.


13

POLICY NOTE

THE COUNCIL TAX REDUCTION (SCOTLAND) AMENDMENT (No. 2) REGULATIONS 2020

SSI 2020/64

1. The above instrument is made in exercise of the powers conferred by sections 80and 113(1) and paragraph 1 of schedule 2 of the Local Government Finance Act1992. It is subject to the negative procedure.

The purpose of these regulations is to amend the Council Tax Reduction Regulations so that a transitional addition can continue to be credited to some persons who are eligible to receive this, following a policy change by the Department for Work and Pensions.

These Regulations also amend the Council Tax Reduction (Scotland) Amendment Regulations 2020 to correct a minor drafting error.

Policy Objectives

2. This instrument amends the Council Tax Reduction (Scotland) Regulations 2012(“the Working Age Regulations”) and the Council Tax Reduction (Scotland)Amendment Regulations 2020.

3. Some people who were moved from certain social security benefits toEmployment and Support Allowance (ESA) are eligible for a transitional allowance.This allowance was due to end on 5th April 2020. However the UK Government haschanged policy, and the 5th April stop date has been removed. The Council TaxReduction scheme reflected the 5th April date, so this instrument amends Part 6 ofschedule 1 of the Working Age Regulations by removing the date of 5th April 2020 infive places. The effect is to ensure those entitled to the transitional addition continueto be credited with the amount in calculating the level of council tax reduction theyreceive. If we did not make this amendment, some people could see a reduction inthe amount of council tax reduction they receive.

4. This instrument also corrects a minor drafting error highlighted by the DelegatedPowers and Law Reform Committee in the Council Tax Reduction (Scotland)Amendment Regulations 2020 (SSI 2020/25), by amending references to aregulation 23A (which does not exist) to regulation 22A.

Consultation

5. No formal consultation was required to be carried out in relation to theseRegulations.

Impact Assessments and Financial Effects

6. The instrument updates and amends existing Working Age Regulations. There

SSC/S5/20/8/4

14

are no specific impact assessments. The amendments will not have a material impact on the cost of the scheme.

Local Government and Communities Scottish Government 27 February 2020

SSC/S5/20/8/4

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