Economy of scale

Plans forth ed evolved Scottish Social Security powers were presented last week.

Out of a total of £670bn, the UK spends £200bn on social security, including pensions and unemployment, £18.3bn in Scotland, of which £2.8bn will be devolved.

The Scottish Disability Living Allowance (DLA) accounts for £1.4bn, half the devolved amount. This is 25 per cent higher per capita than the rest of the UK because we get 10.7% of the UK DLA budget with 8.5% of the population. I have no idea why we have more disabled people in Scotland.

Other responsibilities include carers, funerals and winter fuel, personal independence, severe disablement and discretionary housing payments.

The new organisation’s first act in 2018 will be to increase the Carers budget by £30m from £220 m to £250m, a 14 per cent increase.

If the whole £2.8bn initial budget was increase by 14 per cent this would be a £400m increase.

Asked where the extra money will come from, the Minister, Jeanne Freeman’s repeated answer on Scotland Tonight last week was: this is for Derek Mckay to work out.

I have some questions for Ms Freeman. First, on the assumption that the objective is to deliver fairer, more generous benefits, what provisions are there to deter benefit tourists?

Second, I assume each of the 11 new powers will require IT systems. Does the £400m set-up cost include these, and what plans are there to avoid the EU Farm Payments, NHS24 and Police Scotland IT overspends and delays? These three systems have cost, so far, almost £250million.

And last, does it seem reasonable to spend £400m to set up an organisation with 1500 staff, and £200m a year to run, only to deliver £400m a year in more actual payments? ALLAN SUTHERLAND Willow Row, Stonehaven