New benefits system will be under microscope

Decision to rule out private sector will be welcomed but new agency will still face huge scrutiny

Onthefaceofit,a decision by the Scottish Government to rule out the use by the country’s new social security agency of the private sector in assessing benefit claimants is to be welcomed.

There has, after all, been widespread anger about the hardline approach of Atos, contracted by the UK government to carry out assessments in recent years. The decision not to employ a company driven by targets may make for a more humane system.

But we should not kid ourselves that Scots are especially keen to see a benefits system that might be described as more free and easy as the UK one.

The SNP rails against the “austerity” policies of the Conservatives at Westminster but, when it comes to welfare reform, a majority of Scots are in favour. First Minister Nicola Sturgeon has told Scots a compelling story about the nation’s compassion. But Ms Sturgeon is also – we are sure – fully aware that the use of new welfare powers devolved to Holyrood comes with risks attached.

To some the idea of a welfare system that overflows with munificence may be an appealing one. To the wider electorate – this may seem less attractive. With serious concerns about standards in both the National Health Service and the Scottish education system, the government at Holyrood can hardly be seen to be profligate with public money in any area, least of all benefits.

The SNP makes much of its frequent rejection of the services of the private sector. Social security minister Shirley Anne Somerville painted a picture yesterday of a Scottish benefits agency that cared contrasted with a UK one that was happy to hand responsibility to private companies that “put profit before people”.

But for all its private sector rhetoric, the truth is that this government has handed contracts to a number of companies across a range of departments.

There is nothing wrong with this. If a private company can provide an essential service efficiently and at a cost that represents value for money then it makes perfect sense for them to be allowed to do.

The government can expect the new social security system to be put under the closest scrutiny.

Whether it is run by contractors or civil servants won’t, we suspect, have much influence on the judgment of taxpayers.