THE Scottish Government could use its new devolved powers to pay benefits earlier to older Scots to ensure they received as much help from the welfare system as their English counterparts, who generally live longer, a cabinet minister has suggested.
During a session of the Commons Scottish affairs committee on the issue of demographics and devolution, Ian Murray, Scottish Labour’s Westminster spokesman, asked David Mundell if there was “scope in the 2016 Scotland Act in terms of the welfare powers for the Scottish Government to pay pensions earlier or to pensioners at a younger age if they chose to do so or is there a way that the UK Government can look perhaps at the demographic differences across the UK and whether or not the pensions system is fit for purpose?”
The Scottish secretary replied that the issue of how state pensions were administered by the Department for Work and Pensions remained reserved and so they could not be paid earlier or differently by the Scottish Government.
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But he then said: “With an innovative use of the powers that are being transferred in relation to top-ups and the power to create new benefits, then there would an ability, if there was a desire, to pay benefits to certain targeted people within the community, who clearly could be pensioners.”
The new Act has triggered the process of transferring new powers on welfare to Holyrood, including creating new benefits in devolved areas, topping up benefits and making discretionary payments.
Mr Murray revealed that he had now written to UK ministers seeking clarity on the issue. It is understood the committee has contacted the UK Government also to seek clarity in light of Mr Mundell’s remarks.
The Edinburgh MP said: “I fought hard to get major social security powers into the Scotland Bill to enable Scotland to develop its own system. The secretary of state said in committee that the Scottish Government could use these new welfare powers to provide a financial payment to pensioners if they wished to top up or introduce a system that paid pensioners in Scotland at a lower age.
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“I have written to the Government to get clarity on this but, again, it emphasises that the SNP should get on with their day job of governing and using the vast powers of our parliament at their disposal,” he added.
Statistics have shown that in parts of Scotland life expectancy is much lower than in other parts of the UK, leading to the complaint that while Scots pay into the welfare system as much as anyone else does in the UK, many lose out in terms of the years when they receive the state pension.
While recent figures show that life expectancy is improving in Scotland, it still remains generally much lower than other parts of the UK.
In 2011/13, average life expectancy across the UK was estimated at 82.7 years for women and 78.9 years for men. East Dunbartonshire had the highest life expectancy north of the border with respective figures of 83.9 and 80.5 but in Glasgow the respective figures were 78.5 and 73.0.
Scotland’s population is expected to rise from the current 5.4 million to 5.7m by 2039 and over the same period the number of pensioners is due to increase significantly. The number of pensioners per 1,000 people of working age is due to rise from 311 in 2015 to 397 by 2039.
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Moreover, research suggests Scotland’s working-age population will shrink by 3.5 per cent over the next two decades, which is the largest percentage fall predicted for any of the UK nations. In contrast, the working-age population in England is predicted to increase by more than 5.0 per cent over the same period.
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