Scottish Government: Social Security Benefits

Baroness Suttie Excerpts

Wednesday 24th June 2026 Lords Chamber

[Lord Bruce of Bennachie]

To ask His Majesty’s Government what assessment they have made of the total amount transferred to the Scottish Government in the last financial year following the devolution of social security benefits.

[Baroness Suttie (LD)]

My Lords, on behalf of my noble friend Lord Bruce of Bennachie, and at his request, I beg leave to ask the Question standing in his name on the Order Paper.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, following the devolution of social security powers, the Scottish Government are responsible for funding and administering social security benefits, with funding transferred from the UK Government. Funding for devolved social security is provided through welfare block grant adjustments that transfer funding from the UK Government to the Scottish Government. In the most recent financial year, this amounted to £5.8 billion for the Scottish Government. Decisions on how funding is used are for the Scottish Government.

[Baroness Suttie (LD)]

I thank the Minister for that Answer. In 2025-26, the total social security spend in Scotland was £6.9 billion, which amounts to £1.3 billion more than that which is transferred by the Treasury. It is far from clear how the SNP Government will manage to sustain this level of funding. Does the Minister agree that, to the extent that the Scottish Government have added top-ups, it is important to make it clear that the looming deficit from this and other unbudgeted expenditure is entirely the Scottish Government’s responsibility and they should not blame it on the UK Government—although they will undoubtedly try?

[Lord Livermore (Lab)]

I agree; I am strong supporter of not blaming the UK Government. As the noble Baroness knows, funding is assessed through the fiscal framework, which links welfare block grant adjustments directly to UK Government spending on equivalent benefits. These adjustments are calculated on a forecast basis and reconciled on outturn, ensuring that funding reflects actual spending over time. The Scottish Government are then responsible for spending decisions, including on benefit levels and eligibility. Any additional spending on benefits is a choice for the Scottish Government and must come from within their own budget.