Benefit claimants in some parts of the UK could be tens of thousands of pounds better off than others despite having similar circumstances, a new report has found. An out-of-work couple with four children would have received £22,000 a year in benefit income in York, compared to £37,000 in Glasgow, according to the research on devolved welfare policy – a difference of £15,000.
Other differences mean that parents claiming universal credit in Scotland could qualify for an additional £1,800 during the first year of their baby’s life, which they would not receive in England and Wales.
The report from the Safety Nets project marks the first detailed analysis of devolved welfare policy. It finds that variations in entitlements only marginally increased overall government welfare spending, and warns that those in low-income households could be missing out on support based on where they live.
Key Findings
The authors write: “More and more, the support people can receive when affected by things like low income, illness, disability, or caring responsibilities depends on where in the UK they live.”
Differences in entitlement can also be found between councils in England, the report finds, due to localisation of council tax reduction schemes and crisis support. This leaves a gap of as much as £1,400 to households who may be in near-identical circumstances.
For example, a family living in a Band D property and eligible for a full council tax reduction in Doncaster would pay nothing. But in North Lincolnshire, as close as one postcode area away, the reduction is a maximum 50 per cent and caps at Band B, meaning this family would pay £1,400 a year.
In addition, families in England who receive the maximum council tax reduction still pay on average £248, while those in Scotland and Wales pay zero.
Panel of Benefit Recipients
A panel of benefit recipients involved in the report said: “We are all part of the UK, and it can feel unfair when people in one area benefit from extra support that we can’t access ourselves.” However, they added some of the differences mark “great examples of what devolved and local control of social security can bring”. “Local representatives know the challenges their communities face – those of us who live further from Westminster don’t always feel the UK government understands or prioritises our needs,” they said.
Impact of Devolved Welfare
Overall, devolved welfare policy added about £1bn a year to UK social security spending in 2023-2024. Most of this came from Scotland, which has the greatest power to shape its own welfare policy.
The Scottish National Party has adopted child payments of £28.20 a week per child to low-income families on universal credit, top-ups to several other benefits, and – as in Northern Ireland – automatic protection from the “bedroom tax” which reduces entitlement based on a household’s number of spare rooms.
The Scottish government’s approach to its welfare policy is part of its ambitious aim to reduce child poverty to 10 per cent by 2030-2031. It currently has the lowest rate of the four UK nations at 21 per cent, compared to the average 28 per cent.
The Safety Net project’s study of devolved welfare policy, written in collaboration with the Resolution Foundation and Child Poverty Action Group, drew its findings based on results taken before the abolition of the two-child benefit cap.
The Department for Work and Pensions was approached for comment.
