Welfare Reform• Around half of all the £22 billion of cuts to benefits fall on households

containing a disabled person.

• Disabled people are more likely to rely on benefits for some or all of their income because they are less likely to be in employment.

• The loss to the average UK citizen due to austerity cuts is £490.

• However disabled people will lose an average of £4,410 in benefits and services and disabled people with the most severe impairments will lose an average of £8,832 per person - 19 times the burden placed on the average citizen.

Smith Commission Process

• Inclusion Scotland surveyed over 300 disabled people and engaged with over a hundred more in roundtable discussions.

• Powers over welfare benefits featured as the single greatest priority for further devolution.

• 87% of those asked wanted to see all welfare benefits devolved.

• If a choice had to be made the devolution of disability and other working age benefits was given the highest priority

Smith Commission Recommended

Devolution of disability and carers’ benefits:

• Attendance Allowance (AA) - £481m

• Carer’s Allowance (CA) - £182m

• Disability Living Allowance (DLA) - £1.5 billion

• Personal Independence Payment (PIP) - £17m

• Industrial Injuries Disablement Benefit (IIDB) - £83m

• Severe Disablement Allowance (SDA) - £91m

Scotland Bill definition of “Disability”However Section 19 (4) “Exception 3” of the Bill says -

“Disability benefit” means a benefit which is normally payable in respect of—(a) a significant adverse effect that impairment to a person’s physical or mental condition has on his or her ability to carry out day-to-day activities (for example, looking after yourself, moving around or communicating), or

(b) a significant need (for example, for attention or for supervision to avoid substantial danger to anyone) arising from impairment to a person’s physical or mental condition; and for this purpose the adverse effect or need must not be short-term.

Problems?(i) This is a restrictive definition of what is a disability benefit, which

could limit the autonomy of the Scottish Parliament in setting the eligibility criteria for any new disability benefit.

(ii) Huge concerns that the definition used does not seem to include terminal conditions (such as cancer) which can be short term.

These short-term conditions are currently catered for under “Special Rules” provisions for DLA and PIP where someone not expected to live for more than 6 months can still qualify for a payment.

Ability to Mitigate the Impact?

• The Scottish Government estimates that 66,000 fewer DLA claimants will receive DLA/PIP by 2018, with another +50,000 partially losing entitlement due to the transfer to PIP.

• This will lead to a total loss to claimants of £740m by 2017/18.

• This loss in the total budget will massively restrict any attempt to innovate and reconstruct disability benefits to make them more supportive of disabled people’s inclusion in society.