A damaging row has broken out between the Scottish and UK governments over soaring IT costs for a new benefits system.
Nicola Sturgeon ’s administration is in dispute with Whitehall over who pays for the digital side of delivering lifeline payments.
Scottish Labour MSP Pam Duncan-Glancy said: “The last thing we need is more bickering between our two governments.
“The Tories and the SNP keep choosing to pass the buck and escalate conflict instead of working together – and it is holding our social security system back.
“Both governments need to stop playing the blame game and focus on cooperating to deliver a system that works for the people of Scotland.”
Holyrood was given partial control of social security after the 2014 referendum, including payments for disabled people and the elderly.
The complex project involves the transfer of data from the UK Government’s DWP and setting up IT.
As revealed by the Record, the IT costs for the new benefits system have climbed from £212m to £251m, with the end date “tbc”.
The DWP’s latest annual report has now revealed a spat over which government should foot the bill.
Buried on page 313, the document states: “Scottish Government have raised a dispute over their liability to fund certain digital investment activity that DWP believes is essential to deliver devolution.
“The digital investment activity spans a number of years with detailed requirements and costs for future years yet to be defined therefore a reliable estimate of the contingent liability is not available.”
It added that resolution of the dispute will be through an agreed process.
Scottish and UK Government insiders have previously said that cooperation on social security devolution had been good, but the row signals simmering tensions.
As well as taking on responsibility for benefits once provided by the DWP, the Scottish Government has set up the new Scottish Child Payment for low income families.
It is currently worth £20 a week and Ministers are committed to increasing the payment to £25 a week at the end of the year.
We asked both sides to provide more details of the disagreement, as well as the sum of money involved.
A spokesperson for the Scottish Government said: “The Scottish Government is working closely with the DWP to resolve this issue under the provisions of the Fiscal Framework and will not provide commentary while discussions to seek a resolution are ongoing.
“The devolution of social security is a large and complex programme requiring both Governments to undertake IT system changes and development.”
A DWP spokesperson said: “IT funding cost discussions are not delaying any implementation activity within the DWP.
“We stand ready to complete this programme as soon as possible and we’re working with the Scottish Government to introduce their new social security arrangements as soon as they’re ready. We’ll continue to support claimants by administering their benefits in the meantime.”
Lib Dem MSP Willie Rennie said: “This kind of blame game is just unhelpful and tone-deaf to the bigger issues affecting people up and down the country.
“In the midst of a huge cost of living crisis, we need governments who are willing to work together, not ones that squabble.
“The Scottish Government needs to step up to the plate and concentrate on delivering the help that people urgently need.”
Tory MSP Liz Smith said: “The SNP Government has already run up a quarter of a billion pound bill on a system that shows no sign of being delivered. It’s been so incapable of doing the work that is Holyrood’s responsibility that it’s handed over much of it to the UK Government – and now it turns out that it can’t even agree on settling the bill.
“This is typical of the SNP’s abject failure to do the most basic tasks of government. Scotland deserves better than overblown promises, dismal delivery and nothing to show for it but an eye-watering bill.”
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