Devolution of Welfare

Jim Shannon Excerpts

Tuesday 9th April 2019 Westminster Hall

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I beg to move,

That this House has considered devolution of welfare.

It is a pleasure to serve under your chairmanship, Mr Betts. I am grateful to the Backbench Business Committee for allocating this debate and to my colleagues who are here to participate. We are of course meant to be in our constituencies this week, but events have overtaken us, so I am pleased that we are able to use our time in Westminster to discuss an issue that affects many of the people whom we represent. Indeed, the devolution of welfare is set to impact more than 1 million people in Scotland. That is why it is so important that the process is got right.

I want to make it crystal clear that I enthusiastically support the devolution of the welfare powers to the Scottish Parliament. The Scotland Act 2016 fulfilled a promise made by the United Kingdom Government—the so-called vow—that voting to remain part of the United Kingdom, as Scots did so overwhelmingly in 2014, would not mean an end to devolution. The Conservative Government established the cross-party Smith commission to look at what should be devolved. The Conservative Government then passed the 2016 Act, which devolved a significant tranche of welfare powers, and my Scottish Conservative colleagues in Holyrood voted for the Bill that has paved the way for Scottish Ministers to take over the powers.

No one can question this Government’s or the Conservative party’s commitment to this process. Devolution of welfare allows the Scottish Parliament to try different approaches, to learn from and build on experiences in other parts of the United Kingdom and to deliver welfare more locally in a way that is more tailored to Scottish needs. That is a good thing.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman refers to how things work in other parts of the United Kingdom. The Northern Ireland Assembly is not functioning at the moment as it should be, but when it was, we had a very good relationship with the Conservative party and Government that enabled us to bring in some changes in relation to the Department for Work and Pensions that helped us in Northern Ireland. That involved taking some money out of our block grant. It meant that we were able to help the more vulnerable people. We have very large numbers of disabled people who are in receipt of benefit, whether it be disability living allowance or personal independence payments, across Northern Ireland. A relationship between the Government—our Government, the Conservative Government—and the devolved Administrations is the way forward, and the way to make things happen.

[John Lamont]

The hon. Gentleman makes a very important point about the importance of different Governments within the United Kingdom working together. Ultimately, and in this policy area in particular, we are helping some of the most vulnerable people in society, and it is imperative that we get it right. That is why this debate is so important.

I think it a good thing that more control over welfare is coming to Scotland, but it is clearly a challenge, and it is obvious that the Scottish National party Government in Scotland have significantly underestimated the challenge. Under the 2016 Act, 11 DWP benefits are being devolved to Scotland. The power to legislate for that has already been transferred. On 1 April next year, the Scottish Government are due to gain “executive competence”, which is essentially administrative control over the benefits. Those are significant new powers. Launching Social Security Scotland, the First Minister described it as an “historic moment”.

Although some of the benefits to be devolved are less substantial—they are of course hugely important to those who receive them—significant benefits will be taken on by the Scottish Government. They include PIP, carer’s allowance and DLA and, as a package, they account for about £3 billion, or just over 15% of total social security spending in Scotland.

The Department for Work and Pensions has been working with the Scottish Government to allow the change to take place. The Scottish Government have previously promised that they will be fully delivering these benefits by the end of the Scottish Parliament’s current term, which ends in 2021. In fact, the Scottish Government previously indicated that they hoped to complete the process by 2020, so the timetable had already slipped slightly. Given that the Scotland Act was introduced in this place in May 2015, the Scottish Government could have got ahead of the game and begun preparing for this process much earlier than they did.