THE Scottish Government will see “zero” impact to its budget as a result of Labour’s £5 billion cut to social security benefits, according to the Scottish Secretary.
Ian Murray told MPs any cuts to Adult Disability Payments (ADP), which is the equivalent of Personal Independence Payments (PIP) for Scots, would be for the Scottish Government to decide.
Clashing with SNP Westminster leader Stephen Flynn at a meeting of the Scottish Affairs Committee, Murray called on the Scottish Government to “remove that uncertainty” around devolved benefits.
It comes after Work and Pensions Secretary Liz Kendall (below) unveiled benefits cuts worth £5bn last week, mainly through making it harder to claim PIP, which is a payment to disabled people both in and out of work to help them cover the higher costs of living associated with having a disability.
Asked whether the cut would have any impact on the Scottish Government’s budget, Murray said: “The financial impact of the decision last week on the Scottish Government’s budget that’s been announced is zero and that’s been communicated to the Scottish Government.”
The Scottish Secretary later clarified that he was referring to the Scottish Government’s budget up until the end of the next financial year, which ends in April 2026.
Flynn asked what Scots claiming ADP could expect in the future, with Murray argued that the £5bn figure was only a cut compared with a projected hypothetical increase in benefits spending.
He said: “I think it’s really important to be clear that the £5bn reduction that’s being touted in terms of the figures is a £5bn reduction in the increase, not in the £5bn in the current budget and that’s why the impact on the Scottish budget is zero, in terms of what’s being produced.
“In terms of going forward, those figures will be announced in the Spending Review and in the Spring Statement as they would always be, in terms of that information. Those figures will come out as and when they are available.”
After being told he was “washing [his] hands” of the cuts, the Scottish Secretary replied: “If the question was the other way around, I would fully expect your question to be, ‘Why are you riding roughshod over the devolution settlement?’
“This is a devolved payment, it was devolved under the 2016 Scotland Act, as well as a whole host of other welfare payments and therefore the money is devolved.
“There is £4.9bn extra between now and the end of 2025-26 and it’s up to the Scottish Government to spend that money in any which way they wish to spend it and therefore, if it’s a devolved payment it’s the responsibility to remove that uncertainty by the Scottish Government determining how they’re going to deal with this particular issue.”
Speaking later, Flynn said: "Ian Murray in essence is telling us all to wait another three months until the UK spending review in June – which adds to the cruel uncertainty Labour has already created for disabled people waiting for their pockets to be picked. “Rather than cheerleading the Chancellor to introduce a new era of Labour austerity, Ian Murray should have opposed these cuts to disability support from day one.
"Instead, he has chosen to support a Labour Cabinet which is punching down on the poorest, imposing cuts and breaking more election promises by the day.”
