Disability Assistance

In April 2020, several forms of disability assistance were devolved to the Scottish Government. In most cases, they have continued to be administered by the Department for Work and Pensions (DWP) under Agency Agreements until they are replaced by Scottish payments. The Scottish Government plans to launch replacements for most of these payments which will be administered by Social Security Scotland by the end of 2025.

Child Winter Heating Assistance was launched in late 2020. Child Disability Payment was fully launched on 22 November 2021 and the Adult Disability Payment pilot began in March 2022 and nationally launched in August 2022.

Launch dates for the other replacement payments are still to be confirmed. However, through our discussions with the Scottish Government we have agreed an illustrative timeline for replacing of the payments. We have produced a set of indicative forecasts in our latest publication. However, there remains a high degree of uncertainty. Pension Age Disability Payment is planned to replace Attendance Allowance; Scottish Adult Disability Living Allowance is planned to replace Disability Living Allowance for Adults; and Employment Injuries Assistance is planned to replace Industrial Injuries Disablement Scheme.

Adult Disability Payment

Adult Disability Payment (ADP) is the Scottish Government’s replacement for Personal Independence Payment (PIP). Both PIP and ADP provide financial assistance to contribute towards the increased costs incurred by an individual because of a disability or long-term health condition.

ADP opened for applications in March 2022 for people living in pilot areas and launched nationally in August 2022. New applicants will apply for ADP rather than PIP, with all current PIP recipients eventually moving to ADP by the end of 2025. Our ADP forecast shows the total spending we expect across ADP and PIP.

We expect that the differences between ADP and PIP, particularly around the application and review process, will mean that spending on ADP is higher than what would otherwise have been spent on PIP.

Child Disability Payment

Child Disability Payment (CDP) launched nationally on 22 November 2021 and aims to mitigate the increased costs that children and young people, as well as their families, face as a result of having a disability or long-term condition. CDP was previously described as ‘Disability Assistance for Children and Young People’.

Our CDP forecast includes the estimated additional spending arising from the differences between it and the replaced UK payment, Disability Living Allowance (Child).

Child Winter Heating Assistance

This is an annual payment, paid each winter for children and young people who receive the highest rate care component of Disability Living Allowance or Child Disability Payment. It also includes 16 to 18-year-olds who receive the enhanced rate of care on PIP or ADP.

Employment Injuries Assistance

Employment Injuries Assistance (EIA) is the Scottish replacement for Industrial Injuries Disablement Scheme (IIDS).  These payments provide support to a person who has become ill or disabled because of a disease or accident at work.

Pension Age Disability Payment

Pension Age Disability Payment (PADP) is the Scottish replacement for Attendance Allowance (AA) and is for people over state pension age who need someone to help look after them because of a disability.  Our December 2022 forecast includes an indicative forecast for PADP, but it comes with a high degree of uncertainty as most of the policy details for PADP are yet to be confirmed.

Scottish Adult Disability Living Allowance

The Scottish Government is considering several options for the transfer of people in receipt of Disability Living Allowance (DLA) for Adults to Social Security Scotland payments.  We have assumed that Scottish Adult Disability Living Allowance will replace DLA and provide the same help with the extra costs associated with long-term ill health or disability as DLA.

DLA closed to new applications in 2013. and it was being gradually replaced by Personal Independence Payment (PIP). This managed migration from DLA onto PIP stopped in Scotland when executive competence was devolved in April 2020.

Severe Disablement Allowance

Severe Disablement Allowance (SDA) is a form of disability assistance and has been closed to new applications since 2001. It continues to be administered by the DWP under Agency Agreement following devolution of executive competence in April 2020. We do not expect this to be replaced by a new Scottish payment yet.

Forecast spending for Disability Assistance
£ million 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Adult Disability Payment 1,626 1,754 2,044 2,579 2,921 3,196 3,484 3,783
Child Disability Payment 208 228 268 315 344 366 387 400
Child Winter Heating Assistance 3 5 4 4 4 5 5 5
Employment Injuries Assistance 83 80 80 83 84 83 83 83
Scottish Adult Disability Living Allowance 515 473 446 429 394 354 318 284
Severe Disablement Allowance 7 7 6 6 5 5 4 4
Pension Age Disability Payment 528 521 539 591 642 691 728 764