Reform UK's plans for a major overhaul of disability and working-age benefits could have significant implications for people living in Scotland, despite key parts of the welfare system being devolved.
The party has now published its full welfare policy, setting out proposals covering Personal Independence Payment (PIP), Universal Credit health support and other working-age benefits. However, the situation in Scotland is more complicated because responsibility for some benefits lies with the Scottish Government while others remain reserved to Westminster.
Reform's policy document specifically addresses what would happen north of the border and says some of its changes would apply automatically while Holyrood would decide whether to introduce others.
PIP changes would be for Holyrood to decide
PIP has been replaced in Scotland by Adult Disability Payment (ADP), which is administered by Social Security Scotland. Responsibility for disability benefits including PIP was devolved to the Scottish Parliament under powers transferred from Westminster.
Reform acknowledges this distinction in its welfare policy. The proposed policy paper states: “PIP is devolved, so its reform will not necessarily be extended. The Scottish Government will choose whether to adopt these reforms.”
This means Reform forming a UK Government would not, according to its own policy paper, automatically result in the same changes being made to Scotland's devolved disability benefits. A future Scottish Government would have to decide whether to introduce equivalent reforms.
Universal Credit changes would apply in Scotland
Universal Credit is different because it remains largely reserved to the UK Government. Reform proposes replacing existing Universal Credit health support for new claimants with a new Health Security Allowance (HSA) for people it assesses as having severe and enduring disabilities.
Its document says the health element of Universal Credit is not devolved and therefore Reform's proposed changes would extend to Scotland. That creates the possibility of people in Scotland being affected by Reform's changes to UC health support even if the Scottish Government decided not to introduce equivalent changes to devolved disability benefits.
If the Scottish Government did not adopt Reform's proposed PIP reforms, the party says the Health Security Allowance paid to Scottish claimants would be lower than it would otherwise be. Reform says this would prevent people receiving overlapping support through the devolved Scottish disability benefit system and the new UK-level allowance.
The document states: “If the Scottish government does not reform PIP, Health Security Allowances for Scottish claimants will be lower to avoid duplicating devolved PIP support; however, they would still cover the reformed UC health elements.”
Scottish claimants could miss out on Disability Support Accounts
Reform's wider proposal would combine support currently provided through PIP and the Universal Credit health element for people it considers severely or permanently disabled. The resulting Health Security Allowance would also be means-tested under standard Universal Credit rules, taking account of a claimant's earnings, their partner's earnings and their assets. Reform says this would not affect existing awards until reassessment.
The party also wants to create Disability Support Accounts (DSAs) for people who have additional disability-related costs but who would not qualify for unrestricted cash disability support under its proposed reforms. The accounts could provide help towards specified costs such as equipment, adaptations, transport, communication support and personal assistance.
However, Reform's document says that if Scotland did not adopt its proposed PIP reforms, Scottish claimants would not be eligible for Disability Support Accounts. This means the availability of one of the main elements of Reform's proposed replacement system could differ depending on decisions taken by the Scottish Government.
What about Scotland's funding and other changes?
Reform's policy also addresses the financial consequences for the Scottish Government. Funding arrangements between Westminster and Holyrood include block grant adjustments to reflect tax and welfare powers that have been devolved. Reform says the adjustment relating to devolved benefits would be reduced even if the Scottish Government chose not to follow its proposed reforms.
Its document states: “Whether or not the Scottish Government follows our proposed reforms for devolved benefits, the Scottish block grant adjustment will be mechanically reduced to maintain equity between England and Scotland.” Reform says it has calculated the adjustment using the latest population-based share contained in the Block Grant Transparency report. The policy document does not, in the Scotland section, set out what decisions a future Scottish Government would make in response to such a reduction.
Reform has also proposed changes affecting some new claims for Child Disability Living Allowance (DLA). Its wider welfare plans propose restricting new Child DLA awards involving anxiety, depression and ADHD, while leaving existing child claimants and claims involving other conditions unaffected. However, Reform acknowledges that Child DLA is also devolved in Scotland. The party says its proposed changes would therefore be a matter for the Scottish Government, in the same way as its PIP reforms.
Not everything contained in Reform's welfare package would depend on decisions made at Holyrood. The party says its proposed Welfare to Work measures would apply in Scotland because Universal Credit is reserved. Its proposed citizenship requirements would also automatically apply to reserved benefits such as Universal Credit, while any equivalent changes to devolved benefits would be for the Scottish Government to decide.
Reform is also proposing changes to the way working-age benefits are increased over time. The party wants a new measure of inflation to be used for uprating working-age benefits and estimates changes to the calculation could reduce measured inflation by an average of 0.6 percentage points annually. Reform says its indexation reforms would automatically apply to reserved working-age benefits in Scotland. However, the Scottish Government would decide whether to apply the same approach to devolved benefits.
It’s important to be aware that Reform UK's welfare document is a set of proposals setting out policies the party says it would implement in government. It does not change current entitlement to Adult Disability Payment, Universal Credit or other benefits in Scotland. Existing claimants should continue to follow the current rules governing their benefits.
