Further welfare powers come to Holyrood

New powers in relation to welfare benefits have been devolved to the Scottish Parliament from today (5 September).

Holyrood will now be able to create new benefits in devolved areas, and top-up UK-wide benefits including universal credit, tax credits and child benefit. It also has the power to:

• make discretionary payments and assistance;
• change employment support;
• make changes to universal credit for the costs of rented accommodation; and
• make changes to universal credit on the timing of payments and recipients.

In addition, from 1 April next year, the Scottish Parliament will take on the power to make discretionary housing payments. Other welfare powers (including responsibility for carers and disability benefits, maternity payments and funeral payments) will transfer at a later date.

The Scottish Government is currently consulting on the principles that should underline a Scottish welfare system (click here for report).

Secretary of State for Work and Pensions Damian Green commented: "This significant milestone is the culmination of the close co-operation, hard work and commitment between the UK Government and the Scottish Government to deliver on our promises.

"The Scottish Government now has significant new welfare powers, and we will continue to work together to ensure that devolution works for the people of Scotland and the UK."

The package of welfare powers complements wide-ranging new tax powers for Holyrood, including the responsibility for setting income tax rates and thresholds, which will come into force in April next year. Other tax powers include control of air passenger duty, coming into force in April 2018.