The Scottish government has unveiled plans to set up a new agency to take over the running of key social security payments from the Department for Work and Pensions when more powers are devolved.
Under the Scotland Bill, Holyrood is set to take control of 11 benefits with an estimated value of £2.7bn. Among those passing to the Scottish government are the Carers’ Allowance and the Disability Living Allowance.
Speaking in the Scottish parliament this week, social justice secretary Alex Neil said the new agency would be “directly accountable” to Scottish ministers, and would be “answerable to the people of Scotland on social security in a way that has not been possible before”.
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“On delivery, we intend, after having examined all the available options, to set up a new social security agency for Scotland,” he said.
“We already have a distinct and separate policy agenda, which will be reflected at every stage, from policy making to implementation and delivery.
“The social security agency will work with stakeholders, practitioners and experts from local government, the third sector and representative organisations across Scotland and will build on the excellent relationships and innovative approaches that are already in place.”
Neil said a “fully costed” business case for the agency would be published later this year, and promised that the organisation’s services would be “accessible, fair and command the confidence of users”.
The announcement comes after the UK and Scottish governments agreed a wide-ranging financial deal – the so-called fiscal framework – setting out the basis for new powers to be devolved to Scotland.
According to analysis by the Institute for Government (IfG), the Scottish parliament and government already controls around 60% of public spending north of the border, with responsibility for the health service, schools, local government and housing among the areas of responsibility devolved to Holyrood since the turn of the century.
But Holyrood has had few direct tax and borrowing powers until now, and the new welfare powers secured through the framework – which comes in the wake of 2014's independence referendum – mark the first time Scotland has directly administered cash payments in the welfare system.
The Scottish government set up the arm’s length body Revenue Scotland in 2012, taking on the administration of taxes previously collected by HM Revenue and Customs.
Speaking as the Scottish government unveiled its plans, Labour's Neil Findlay welcomed the principle of a new, dedicated welfare agency north of the border.
But he said his party wanted to guarantee that the system would be "publicly run, accountable to this parliament, and not hived off to the private sector or some agency elsewhere that can be blamed if things go wrong".
John Lamont, speaking for the Conservatives, said debates about social security in Scotland had "for too long" been "simple exercises in criticising the policies of the UK government".
He added: "The Scottish government now have an opportunity to offer their alternative plans for dealing with these complex matters.”
Scotland's top civil servant, permanent secretary Leslie Evans, told the IfG last week that the transfer of powers showed the need for "greater interaction" between officials in Scotland and the UK.
"We also have to recognise our greater interdependency, what I call the ragged edges of devolution — where devolved and reserved policy areas bump up against each other," she said.
"That’s always demanded a certain level of interdependency, but as devolution continues, more time and energy must be invested in every day and routine contact and procedural interactions. We must recognise our respective strengths. We must be clear what it means to be a civil servant and continue to implement political choices in the finest civil service tradition."