Re-thinking Welfare: Fair, Personal and Simple
This is the 2nd report of the Expert Working Group on Welfare looking at the medium and long term options for welfare in an independent Scotland.
The report recommends the introduction of a new working age Social Security Allowance or ‘SSA’, instead of Universal Credit, which would bring together a number of existing benefits but exclude Housing Benefit. The ‘Bedroom Tax’ would be abolished.
The report also makes recommendations for replacing the work capability assessment (WCA), reviewing PIP and DLA with a view to replacing them and also for ways of helping disabled people into work.
On WCA the report says
“For those for whom work is a realistic goal, but who need greater support, we do not believe that the Work Capability Assessment (WCA) is the right way to assess their needs. We recommend that the WCA is scrapped and outline a series of new features of the assessment process which should take its place. The new assessment should be carried out by a clinical professional and should be developed in equal partnership with professions, organisations which represent disabled people and people with health issues, and the individuals themselves.”
On reviewing PIP and DLA:
“The review should commence at the beginning of 2015 and deliver final recommendations by Spring 2016. These would be available in time for the elections to the first Parliament of an independent Scotland. We recommend that the review is asked to come up with detailed recommendations for replacing DLA and PIP with a new social security benefit for disabled people.”
On help into work:
“Once ready for work, we recommend establishing a new ‘Work Opportunities Service’ to provide advice and guidance to [disabled] individuals on jobs available. The precise model of this service would need further, detailed consideration, but we would expect it to be a partnership between those who currently lead existing initiatives designed to help disabled people into work. We would also expect it to have a strong NHS vocational rehabilitation element to its work.”
“We recommend that the Work Opportunities Service would have, as part of its remit, a requirement to work closely with employers, providing them with advice and support on issues such as better structuring of jobs and adapting facilities for disabled people.”
“Flexibility in the current system such as the provision for ‘permitted work’ (previously known as the ‘therapeutic earnings rule’) has been poorly understood and barely used. We recommend that enabling disabled people or people with long-term conditions (which might fluctuate leading to ‘good days’ and ‘bad days’) to try out small amounts of work without putting their income from the social security system at risk should be reflected in a reformed system. It is vital to take the fear out of moving from benefits into work for people.”
The Scottish Government’s response
In its response the Scottish Government welcomes the recommendations of the report
“The Deputy First Minister confirmed that in an independent Scotland the current government would take forward recommendations, including those to improve support for carers, restore the link between benefits, tax credits and the cost of living and abolish the current Work Capability Assessment.
She also confirmed that the Scottish Government would carefully consider the Group's recommendations on the minimum and living wage, introduction of a new Social Security Allowance and replacement of the Work Programme with more targeted support to help people find and sustain employment.”
“Following a vote for independence, we would be committed to taking on several recommendations straight away to deal with those aspects of the current system that are pushing so many people into poverty.”
The Government would:
- Increase Carers’ Allowance to £72.40 per week, the same rate as Jobseeker’s Allowance for those aged 25 or over. This would amount to an extra £575 a year for the 102,000 people in Scotland who are eligible to claim the allowance.
- Re-establish the link between benefits and the cost of living, with benefits and tax credits being increased each year by the Consumer Prices Index of inflation.
- Abolish the ‘Bedroom Tax’.
- Replace the current system of sanctions with one that is fairer, more personalised and positive.
- Abolish the current Work Capability Assessment that determines the ability to work of the sick and disabled.
- Establish a National Convention on Social Security at the start of 2015.
The Government will also carefully consider the Group’s other recommendations. These include:
- Increasing the National Minimum Wage to equal the Living Wage and with reductions in Employers’ National Insurance contributions to help businesses make this transition.
- Replacement of the Work Programme with new initiatives developed in partnership with those out of work to help them find, and stay in, employment.
- Introducing a new Social Security Allowance that would bring together existing benefits but which would exclude Housing Benefit.
- Better supporting those with long-term disabilities and illness into work.