Politics

SNP Government warned of £770m black hole in Adult Disability Payment

By Paul Hutcheon

Copyright dailyrecord

SNP Government warned of £770m black hole in Adult Disability Payment

A watchdog has warned the SNP Government about a £770m black hole in the country’s top disability benefit . Audit Scotland said Ministers should come up with a plan to manage the massive funding gap for Adult Disability Payment (ADP). ADP, which replaced the Personal Independence Payment and is devolved to Holyrood, gives extra money to people with a disability or a long-term health condition . Of the 500,000 Scots who receive the benefit, nearly 160,000 are new ADP applicants. According to Audit Scotland, the Scottish Government spent £2.6bn in 2023/24 on ADP – £141 million more than the funding available through the UK block grant. The watchdog will say in a new report that the gap will grow to £770m by 2030. Stephen Boyle, Auditor General for Scotland, said: “Adult Disability Payment is a lifeline for thousands of people in Scotland. It is also the clearest example of how the Scottish Government’s commitment to making the social security process less onerous has come at a cost. “Given that the gap between available funding and ADP spending is forecast to grow significantly, the Scottish Government needs to set out how the gap will be managed over the medium-term, and how this will impact on the lives of disabled people. “To ensure money is well spent, ministers need to be much clearer on what parts of the ADP application and review process are making the biggest difference to disabled people, and what the costs are compared to PIP.” The watchdog said the eligibility and payments for ADP and PIP are similar, but that the ADP application and review processes are less onerous. Labour MSP Michael Marra said: “This stark report lays bare the reckless financial incompetence of this SNP government. “It is right that we build a social security system that works for people, but those aims are meaningless without a plan to pay for it or a way to monitor success. “The SNP must set out a real plan to balance the books and must get a clearer grasp on what truly makes a difference to disabled people’s lives.” Social Justice Secretary Shirley-Anne Somerville said: “I welcome this report and I am pleased it recognises that we have successfully transferred the Personal Independence Payment awards of everyone in Scotland to Adult Disability Payment, a system that is underpinned by dignity, fairness and respect. “Benefit expenditure is the result of our conscious decision to invest in the people of Scotland. Here, when somebody is eligible for support, they meet a humane system. “Our efforts are possible because we balance our Budget every year despite over a decade of austerity and punitive welfare cuts from successive UK Governments. And our Medium-Term Financial Strategy and Fiscal Sustainability Delivery Plan set out the actions we’re taking to improve the sustainability of the public finances. “I continue to call on the UK Government to reverse its plan to cut the health element of Universal Credit, which will cost around 77,000 households in Scotland £3,000 a year by 2029-30. Meanwhile, we will not cut Adult Disability Payment and I urge the UK Government to follow our lead to ensure disabled people have the support they need.” To sign up to the Daily R ecord Politics newsletter, click here