The Smith Commission published its report detailing Heads of Agreement on further devolution of powers to the Scottish Parliament
Benefits
Universal Credit (UC) will remain a reserved benefit administered and delivered by the Department for Work and Pensions (DWP) but Scotland will have powers to:
- change the frequency of UC payments
- vary the existing plans for single household payments
- pay landlords direct for housing costs in Scotland
- vary the housing cost elements of UC, including varying the under-occupancy charge (bedroom tax) and local housing allowance rates, eligible rent, and deductions for non-dependents.
The following benefits will be devolved to the Scottish Parliament:
- Attendance Allowance
- Carer’s Allowance
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Industrial Injuries Disablement Allowance
- Severe Disablement Allowance
- Regulated Social Fund: Cold Weather Payments, Funeral Payments, Sure Start Maternity Grants and Winter Fuel Payments
- Discretionary Housing Payments.
The Scottish Parliament will have complete autonomy in determining the structure and value of these benefits or any new benefits or services which might replace them.
The Scottish Parliament will have new powers to create new benefits in areas of devolved responsibility. The Scottish Parliament will also have new powers to make discretionary payments in any area of welfare without the need to obtain prior permission from DWP.
In addition it may seek agreement from DWP for the Department to deliver those discretionary payments on behalf of the Scottish Government.
The UK Government’s Benefit Cap will also be adjusted to accommodate any
additional benefit payments that the Scottish Parliament provides.
New arrangements for how Motability will operate in Scotland for DLA/PIP claimants will be agreed between the Scottish and UK Governments.
Work Programmes
These will devolve to the Scottish parliament on expiry of current commercial agreements.
Energy efficiency and fuel poverty
Powers to determine how supplier obligations in relation to energy efficiency and fuel poverty, such as the Energy Company Obligation and Warm Home Discount, are designed and implemented in Scotland will be devolved.
Responsibility for setting the way the money is raised (the scale, costs and apportionment of the obligations as well as the obligated parties) will remain reserved.
Appeals
All powers over the management and operation of all reserved tribunals (which includes administrative, judicial and legislative powers) will be devolved to the Scottish Parliament other than the Special Immigration Appeals Commission and the Proscribed Organisations Appeals Commission.
Income Tax
Income Tax will remain a shared tax and both the UK and Scottish Parliaments will share control of Income Tax. MPs representing constituencies across the whole of the UK will continue to decide the UK’s Budget, including Income Tax.
Within this framework, the Scottish Parliament will have the power to set the rates of Income Tax and the thresholds at which these are paid for the non-savings and non-dividend income of Scottish taxpayers (as defined by the Scotland Acts).
As part of this, there will be no restrictions on the thresholds or rates the Scottish Parliament can set. All other aspects of Income Tax will remain reserved to the UK Parliament, including the imposition of the annual charge to Income Tax, the personal allowance, the taxation of savings and dividend income, the ability to introduce and amend tax reliefs and the definition of income.
You can read the full 28 page report at https://www.smith-commission.scot/