SCVO Briefing - Scotland Bill Committee Stage, Third Day (Clauses 19-30, Part 3)

Context and principles

The third sector has a clear view about the principles and purpose of social security policy and delivery – these include dignity, holistic support and income adequacy. Yet, the reality is very far from the vision.  Charities are already dealing with recent welfare changes and the impact of punitive sanctions which have led to substantially increased demand for support – including crisis support - across all types of voluntary organisation. Consequently, the prospect of a further £12 billion of welfare cuts, at a time when economic and social divides in our society have been exacerbated by current benefits policy, is causing significant concern.  The prospect of further cuts and austerity - alongside wider conversations in Scotland about social justice and what our social security system should look like - are feeding into the debate about the Scotland Bill, the prospect of new powers and what they may, or may not allow us to do to shape a fairer Scotland.

Social security clauses – concerns

Many within the third sector have consistently called for full devolution of social security or working age benefits and employment powers (with the exception of pensions) to Scotland.[i] Anything short of this has the potential to create greater complexity for service users - something which the third sector, the DWP and Ministers across both Governments would not wish to see. SCVO, along with many of our members and third sector partners such as Inclusion Scotland, One Parent Families Scotland, SAMH and others, [ii]firmly believe that the Scotland Bill clauses, particularly those dealing with social security, do not reflect the spirit or detail outlined within the Smith Commission proposals. What is more, we believe that the powers to be transferred must be shaped in a way which give future Scottish Governments full “policy autonomy”, [iii]  without having to make a case for how those powers might be used. We support the Scottish Parliament Devolution Committee’s call for inclusion of principles to drive intergovernmental working to be on the face of the Scotland Bill.[iv]

Scotland Bill clauses - comments

The social security and employment clauses seem to have the effect of devolving benefits and their administration, rather than wider powers which could provide the scope to take different approaches, change or create new eligibility and harness connections with existing devolved services. We therefore call on all MPs to support amendments which remove restrictions within the clauses which have the effect of limiting the policy scope and potential to create a more dignified and empowering approach. This applies particularly to carer and disability benefits, and employment powers. For example, Clause 19, page 22, lines 45 - 48 defines a 'relevant carer'.  Therefore while the Scottish Parliament could create a new carer benefit it could only do so within the confines of the restrictions defined in the Bill.  Eligibility restrictions must be removed and the definition of disability must also be wide enough to include those with temporary conditions[v]. One of the key lessons from the devolution of previous powers of e.g. crisis support and Community Care Grants (now the Scottish Welfare Fund), is that the wording and scope of legislative clauses is vital[vi]. Current wording reduces our ability in Scotland to tackle issues of benefit adequacy and eligibility or to create new and more effective supports for key groups such as unpaid carers. In addition, it is still not clear if there would be an ability to create new benefits beyond discretionary responses. Recent analysis of Work Programme performance outlines all too clearly why all employment support should be devolved to Scotland. [vii] With very poor work outcome rates (two years, 24.9%); poorer outcomes for those with ill health/disability, and Scotland’s poor performance (two years, 24% positive outcomes), it’s vital that Scotland gains control over employment powers as quickly as possible. We therefore call on political parties to refocus relevant clauses to remove the existing restrictions.  Clause 26 is but one example where it makes sense in both policy and practical terms to amend the wording to ensure that the missing pieces of the skills, learning and employment infrastructure in Scotland are brought within the scope of the Bill. As well as power to create employment programmes, this would include Jobcentre Plus support and Access to Work. We comment on specific, proposed amendments later in this briefing. We do not support any mandatory activity or conditionality within the Bill, including the notion of mandatory work placements. For example, at present Clause 21 excludes support from those being sanctioned. The potential impact of this clause on the Scottish Government’s widening of the Scottish Welfare Fund to include those subject to punitive conditionality must be investigated. The Bill as it stands will leave Scotland in a rather confusing situation - with Jobcentre Plus advisers being able to make mandatory referrals to employment programmes or sanctioning them within that context. Yet, these are not programmes which the DWP will control. We believe the current conditionality regime should also be devolved; we would then call on the Scottish Parliament to scrap conditionality as strict sanctions regimes do not incentivise people to move back into work.[viii]   A Scottish approach could be based on incentives and more effective provisions to assist people to find work, retain or progress in employment. Finally, SCVO is not supportive of amendments or new clauses which seek to identify how specific powers might be further devolved beyond the Scottish Parliament (e.g. clause 26, amendment 9)  Devolution of powers to the Scottish Parliament is the first stage of the devolution process. Once broad powers are transferred, the next stage must be a wider debate and involvement of all key interests including affected people, to decide how these powers will be used and at which level they might be exercised.  It is not appropriate for the Scotland Bill to be used to bypass this necessary debate.

Amendments

In this section, we comment on/suggest changes to tabled amendments. SCVO and the wider third sector have made it very clear that we support full devolution of employment and social security powers, with the exception of pensions We make no comment on amendments which relate to further fiscal autonomy as we have not consulted with the sector on this – however, in our response to the Smith Commission we noted: “Whilst recognising that there may be gains from aligning welfare benefits with devolved powers, there were concerns raised by some members… regarding the unforeseen consequences of detaching welfare powers from fiscal powers.” We have also refrained from commenting on amendment NC46 as we have not yet consulted members on the devolution of benefits to children, although we see the logic of widening devolution to include these given that education and childcare are currently devolved. It is heartening to see joint amendments from the SNP and Labour – working together in this way is what many in the third sector and activists would hope to see from our parties and governments. We comment on specific clauses below. A number of these amendments have been promoted by third sector organisations including the Child Poverty Action Group[ix], SAMH and others. Clause 19: Disability and Carer Benefits We support amendments 128, 112 as these widen out the definition of disability and eligibility for support to disabled people, providing an opportunity to reshape all support programmes and to realise the concept of independent living. Amendment 48 – whilst we support the removal of the paragraph which restricts access to Carers’ Allowance, we also would wish to see rewording of “substantial and regular” – given that many caring roles might be intermittent or lighter in terms of number of hours – yet have a significant effect on financial and emotional wellbeing. This would allow Scotland to determine its own benefit for carers, and who might be eligible for it. Clause 20 – Regulated Social Fund Amendment 115 – we would be less willing to support this, if it meant in practice, the use vouchers and in kind support, reducing the choice of claimants to have support fulfilled in a way which best meets their needs.  This issue was raised during the passage of the Welfare Funds (Scotland) Act. Reduction of choice is not something the sector would support, given it reduces the dignity of those who may already be facing financial hardship. Clause 21 - Discretionary payments: top up of reserved benefits Amendment 12 – we support this. We consider that the exception which prevents those being sanctioned (line 13 onwards) must also be removed Clause 22 – Discretionary housing payments We support amendments which would allow those who lose Housing Benefit entitlement because of the under-occupancy charge, to claim DHP, and which seek to ensure those who are sanctioned can also be supported. Clause 23 – Discretionary payments and assistance Amendments 8, 117, 111 – again we support these changes. It is vital that those sanctioned can have access to the Scottish Welfare Fund.  This is one element of good practice within the Fund which the third sector campaigned for.  To lose this flexibility closes down a final safety net for those who face punitive and often unjustified benefit sanctions. Amendments 130, 131 – we generally welcome these, but we need to ensure that by using the term “families”, individuals and couples who need discretionary assistance are not unintentionally excluded. Clauses 24 and 25 – Universal Credit Amendments 118, 119 – we support these. Intergovernmental working is critical if Universal Credit remains reserved. Again, there is a clear case for relationship principles to be on the face of the Scotland Bill. Clause 25 – Employment Along with SAMH[x] and others we support a range of amendments to this clause which serve to devolve all employment powers and functions to Scotland e.g. 114, Access to Work and 120 to 122 and NC43, covering devolution of services and Jobcentre Plus.  We would hope that this would include control over conditionality. We offer support for amendment 113 in the event that 122 and other similar amendments are not pursued or fall. Amendment 10 looks positive too, as it could allow for expansion of successful support mechanisms such as Community Jobs Scotland. We DO not support amendment 9 on the basis of arguments made above – the level at which work programmes are delivered should not be in scope at this stage. Amendment NC28 – the Scottish Federation of Housing Associations and other housing organisations are likely to be supportive of this.  It makes sense given housing is devolved and would allow for more creative use of housing subsidy. We fully support amendment NC31, submitted by both Labour and the SNP which widens the scope for the Scottish Parliament to create new benefits.

Conclusion

SCVO welcomes those amendments which remove limitations to powers and which would enable the Scottish Parliament to take a holistic, integrated approach (with already existing devolved responsibilities such as health, care and education) to supporting people to achieve their full potential, and to enabling them to contribute both to the economy and in their local communities. However, we are conscious that the consensus on taking forward the Smith Commission proposals and to implement the Scotland Bill could be sorely tested by the strong likelihood of further cuts to the social security budget. These cuts are likely to substantially limit what, in practice, will be devolved to Scotland - in addition, these shunt costs to the statutory and voluntary sectors here, at a time when we are still dealing with the last round of spending and benefit cuts.  We must explore speedy devolution of powers by order e.g. over Universal Credit payments and housing costs, would allow us to mitigate some of the disincentives within the system before further roll out of powers.

References

[i] https://www.smith-commission.scot/wp-content/uploads/2015/01/B00296.pdf [ii] Inclusion Scotland – MP Briefing, Scotland Bill, June 2015 [iii] http://www.scvo.scot/jobs-employability/cjs/ [iv] http://researchbriefings.files.parliament.uk/documents/CBP-7233/CBP07207.pdf [v]Inclusion Scotland MPs briefing, Scotland Bill, June 2015 [vi] Inclusion Scotland MPs briefing, Scotland Bill, June 2015 [vii] ,Centre for Economic and Social Inclusion -  Work Programme Statistics – Inclusion Analysis, 18/6/15 [viii]http://www.community-links.org/linksuk/?p=2641 ; SCVO briefing, Oakley Sanctions Review, 2014 [ix] Child Poverty Action Group (CPAG) in Scotland  - DRAFT Proposed amendments to the Scotland Bill 2015 [x]Scotland Bill Committee Stage – Day 3 briefing from SAMH

Contact

Lynn Williams lynn.williams@scvo.scot 0141 559 5036/07771 666429 Scottish Council for Voluntary Organisations, Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh EH3 6BB Web: www.scvo.scot

About us

The Scottish Council for Voluntary Organisations (SCVO) is the national body representing the third sector. There are over 45,000 voluntary organisations in Scotland involving around 138,000 paid staff and approximately 1.3 million volunteers. The sector manages an income of £4.9 billion. SCVO works in partnership with the third sector in Scotland to advance our shared values and interests. We have over 1,600 members who range from individuals and grassroots groups, to Scotland-wide organisations and intermediary bodies. As the only inclusive representative umbrella organisation for the sector SCVO:

• has the largest Scotland-wide membership from the sector – our members include charities, community groups, social enterprises and voluntary organisations of all shapes and sizes.
• has democratic and accountable governance and membership structures - with an elected board and policy committee from the sector, we are managed by the sector, for the sector.
• brings together organisations and networks connecting across the whole of Scotland.

SCVO works to support people to take voluntary action to help themselves and others, and to bring about social change. Further details about SCVO can be found at www.scvo.scot.