The Social Security (Up-rating) (Miscellaneous Amendments) (Scotland) Regulations 2025: scrutiny report

This year, uprating policy itself has changed in that a distinct policy decision has been made that all payments under the 2018 Act will be subject to the statutory uprating duty. Following an announcement in September¹19.9.24: https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=16002 the Social Security (Amendment) Bill was amended by Government to this effect.²Section 15A of the Bill as passed: https://www.parliament.scot/-/media/files/legislation/bills/s6-bills/social-security-amendment-scotland-bill/stage-3/bill-as-passed.pdf The foreword to the Scottish Government’s Section 86A report, accompanying the draft regulations articulates the Scottish Government’s approach to up-rating in the following terms—

“Since the first Scottish up-rating exercise in 2019, the Scottish Government has frequently chosen to up-rate all payments, including those increased at Ministers’ discretion. This financial support has been absolutely crucial to many people, especially during the current cost of living crisis. This Government believes that the people of Scotland should be able to depend on the social security assistance they receive retaining its purchasing power as prices rise. To that end, through the Social Security (Scotland) Amendment Bill, we have extended the legal obligation to annually increase all benefits delivered under the Social Security (Scotland) Act 2018 in line with inflation.

This extended legal requirement will apply immediately to the Best Start Grants and our winter heating payments. Best Start Foods will be brought under the 2018 Act in future but, until then, the Scottish Government is committed to also increase this payment each year in line with inflation” (p.2).

We understand from officials that there is a distinction between the following—

1. policy decisions on uprating;
2. decisions about rules for each specific benefit; and
3. decisions relating to the Budget process.

Annual uprating can differ from the more specific objectives relating to particular benefits; for example the Scottish Child Payment has a role in reducing child poverty and the Adult and Child Disability Payments contribute towards meeting some additional disability-related costs. Uprating decisions are also distinct from wider Budget policy, and subject to specific provisions under the 2018 Act.³E.g. Sections 86A and B

The draft Policy Note states that no impact assessments are usually made on uprating regulations, stating that—

“It is not considered necessary to carry out additional impact assessments as these Regulations do not seek to substantively change the policy intent of each set of specific benefit regulations”. (p.5)

Impact assessments, which should inform policy decisions, are published with changes to specific benefits, and impact assessments are included in Budget documentation.

SCoSS believes that it can be helpful for stakeholders to fully understand the implications if information about potential impacts is more explicitly included in the documentation produced about such changes.  We recognise that such assessments should be proportionate to the decision being made. However, given the fuzziness of boundaries between uprating, Budget and specific policy decisions, and the human rights budgeting principles of transparency, participation and accountability,⁴See eg https://spice-spotlight.scot/2023/01/10/the-three-golden-rules-mainstreaming-transparency-participation-and-accountability-in-the-scottish-budget/ SCoSS believes it would be helpful for each set of documents to clearly signpost where relevant impact assessments are held.

Recommendation One: To assist stakeholders understanding of the impact of changes, relevant assessments from the decision-making process, relating to the Budget, social security assistance and uprating policy itself, should be clearly signposted in the Section 86A report and the policy note accompanying the up-rating regulations.