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When it to comes to increases that result in a change of a person’s conditions, we do not estimate there will be any increased cost, because our approach largely mirrors the DLA-to-PIP transition, which is covered in the funding that we receive from the block grant adjustment. However, our approach to any decreases will likely increase our costs, as we are choosing to be more generous than the DWP policy. The position with increases to a person’s payment is that they will be backdated to when the case transfer happened.

With regard to decreases, we will apply that only from the date of the review rather than the change of circumstances or case transfer. Therefore, they will apply from when the person’s review outcome is decided. Of course, if they choose to undertake a redetermination or appeal, they will get short-term assistance through that process. It would be only from the conclusion of their review that any decrease or a nil award would be applied.

Can you just refine that question, Mr Balfour, so that I am clear about what you are asking?

Good morning, and thank you for inviting me to give evidence on the draft Disability Assistance for Working Age People (Transitional Provisions and Miscellaneous Amendment) Regulations 2022.

I am grateful for our recent discussion on case transfer more generally, which I hope that members found useful. I also appreciate the work of the committee to date in considering the case transfer provisions for people whose awards are moving from disability living allowance to child disability payment and from personal independence payment to adult disability payment. The draft regulations that we are discussing today mirror the processes in the regulations on those benefits in many ways, but there are some key differences, which I will come to shortly.

As I have set out to the committee and Parliament before, we are determined to ensure that case transfer is a seamless process and that we transfer people’s awards safely and securely. It is not a simple administrative process. We are refining information from Department for Work and Pensions systems, some of which are decades old, and transferring it to Social Security Scotland’s new, agile single benefits system. Ensuring that we have the right information and that no one falls out of payment across the total of approximately 700,000 awards that will transfer is a project that takes planning and time. We are doing that work at pace, while ensuring that we do not risk the process’s being undertaken in a safe and secure way. Protecting payments is our absolute focus. The benefits in question are payments of money that people rely on, and we will make sure that recipients continue to get paid the right amount of money at the time that they expect.

From 13 June, we will pilot the PIP transfer, with full transfer beginning at the end of August with the national introduction of our adult disability payment. At that point, adults who receive disability living allowance and would otherwise be required to apply for PIP will start to have their awards selected for transfer. It is that transfer, which is known as natural case transfer, that we are here to discuss.

The draft regulations will ensure that a Scottish resident who was born after 8 April 1948 will have their DLA award selected for transfer to ADP if one of the following three criteria is met: a change of circumstance relevant to the DLA award is reported; the DLA award is due to be renewed; or the person asks to have their DLA award transferred. Once the transfer completes, the person’s initial ADP award will be a like-for-like copy of their DLA award. Then, because the eligibility rules for DLA and ADP are different, the person’s award will be reviewed and ADP rules will apply.

I must make it clear that that review will mean that some people’s awards will stay the same, while other people’s awards may be increased, reduced or ended. That said, the process will not be a repeat of the DWP’s transition from DLA to PIP. In line with our case transfer principles, people will not have to apply for ADP in the way that they had to for PIP. Instead, they will be supported through a review process. People who undergo that review will have our new forms of support available to them through our local delivery service and our independent advocacy service. People will have the enhanced rights that we have built into ADP available at every stage of the process.

I will briefly outline that support. We have replaced the adversarial approach of the DWP through the removal of assessments and degrading examinations. We start from a position of trust in what people tell us. The onus will be on Social Security Scotland to collect information on people’s behalf. The agency will need to collect only one piece of formal supporting information when it makes a decision. Short-term assistance will also be available for anyone who has a reduced or nil award after the review and wishes to seek a redetermination or appeal.

We are also exploring ways of providing support to anyone who may lose the enhanced mobility component on review, given the impact that that will have on their ability to continue to access the accessible vehicles and equipment scheme. I will update the committee on that as soon as I can.

We have designed the process to be as supportive as possible, while acknowledging the challenges that moving between different benefits with different rules could create. I believe that, with the regulations, we have struck the right balance.

I will be happy to take questions.

I cannot speak for individual circumstances after the review, because that will be part of the review process under the eligibility rules for ADP. However, we have explored a number of options for people who might see a reduction in their award or might receive a nil award when their ADP is reviewed, and I will just set out some of those different options now.

We will support people in a number of ways. First, as I have stated, we are ensuring that individuals transfer at their current award level in the first instance, so that they can be supported through the review process. We are also, as I said in response to the deputy convener, setting out clearly in advance the support available to them through our local delivery service and independent advocacy service.

Individuals will benefit from the changes that we have made to ADP to ensure that they are treated with dignity, fairness and respect. For example, we will trust what they tell us. We will place the onus on Social Security Scotland to collect information on people’s behalf during the review and require only one piece of formal supporting information. An important point is that people will have the right to challenge any decision that sees their award reduced or results in their getting a nil award, and they will have access to short-term assistance through that process. The situation for people will, as a result, be a significant improvement on their situation had they been in the DWP system.

As I said in my opening statement, we have thought about how this process will affect individuals. First, there is the case transfer process and then there is the review, which is what I think—if I am not mistaken—you are referring to. The very clear position is that, at the end of the case transfer process, no one should be worse off than they would have been, had they stayed with the DWP.

As for the review of cases, which of course will happen in due course, the differentiation in our system is that, if an award is increased after being reviewed, that increase will be backdated to the point of case transfer, ensuring that no one misses out. That sort of backdating does not happen in the current system.

If an award is decreased, that change will only take effect from the date of the decision, which means that there will be no overpayment that the person will be asked to repay. That clear difference will be of advantage to people.

I would refer you to what has just been said. I would also point out that we also have to transfer people on PIP and that we need rules that are consistent and like for like with PIP. We have 300,000 PIP case transfers to undertake.

As I said, any increase will be from the date of case transfer. In terms of a reduction or a nil award, there is the process of case transfer—which will take 13 to 17 weeks—and then there is the review, which takes time, and then any redetermination or appeal.

There might be circumstances where, under the DWP system, the time before the reduction was applied would have been longer but, in a significant number of circumstances, we anticipate that, in the event of a decrease or a nil award, people will generally be better off within our system, because of short-term assistance and the fact that we will apply the decrease only from the date of final decision rather than date of transfer or change of circumstance, which is the situation with the DWP. Kate Thomson-McDermott can say a bit more about that.

I am not saying that, because that is what the evidence shows happened for people going from DLA to PIP, but that is the evidence from the DWP’s undertaking of its process. We will see how that situation develops in our system. A key point of emphasis that members will appreciate is that we expect to get more decisions right first time. The split of a third, a third and a third comes from initial findings, but 65 per cent of PIP appeals are successful, so there is a different outcome in the end. We have those background situations that help us to consider how this process into the ADP will progress. Certainly, we would look to get decisions right the first time. That is a determination of ours so we are likely to see more success.

I respect Pam Duncan-Glancy highly, but I just want to emphasise again that since 2018 we have been building from scratch an agency that is now highly performing and which employs nearly 2,000 people. We have delivered several benefits; we will start to deliver our 12th on Monday; and seven of those 12 benefits, some of which we are discussing uprating today, are new and available only in Scotland.

That is an important question. I do not want to go into too much detail on the complexities of the internal correspondence within Government, although I will bring in Dominic Mellan if he wishes to add anything that is relevant.

Ministers have, of course, looked collectively at the situation that is before us, with the real pressures that families are encountering and will encounter in the period ahead, and we are determined to provide assistance and help where we can, using the powers and resources that we have. We looked at what we could absorb within the social security budget. The additional amount that we are allocating in order to undertake the uprating for the financial year ahead is £2.7 million. We have absorbed that within the social security budget.