Scotland bans private firms from doing benefit assessments Private firms will be banned from carrying out benefit assessments for Scotland’s new social security agency under plans to create […]

Private firms will be banned from carrying out benefit assessments for Scotland’s new social security agency under plans to create a more compassionate system, ministers have announced.

The new agency will be responsible for administering social security payments worth around £2.8bn a year after the relevant powers are devolved to Holyrood from Westminster.

“Profit should never be a motive nor play any part in assessing or making decisions on people’s health and eligibility for benefits” The i politics newsletter cut through the noise Email address is invalid Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription. Jeane Freeman MSP

The Scottish Government said one of the main principles of the body, which will have running costs of around £150m a year, would be to “put people before profits”.

As part of this, private firms will not be used to carry out benefit assessments – a practice which has caused widespread controversy across the UK amid claims of sick people being forced back to work.

The new organisation will employ at least 1,500 staff, making it one of largest agencies of the Scottish Government, and will maintain a “local presence” across the country so people can access one-to-one support.

The details about the new agency were announced by Social Security Minister Jeane Freeman in a statement at the Scottish Parliament.

“One of our fundamental principles is that profit should never be a motive nor play any part in assessing or making decisions on people’s health and eligibility for benefits,” she said.

‘Dignity and respect’

“We are building a system based on dignity and respect – this means an assessment process which isn’t demeaning or deliberately difficult.

“I am very clear that assessments should not be carried out by the private sector and I want to give people in Scotland this assurance as we take forward our new social security agency.”

The move was welcomed by anti-poverty groups, who said the UK Government’s outsourcing of medical assessments to firms such as Atos and Capita had created “huge problems” for sick and disabled people.

Scottish Labour’s social justice spokeswoman Pauline McNeill added: “People across Scotland have often suffered humiliating and damaging treatment at the hands of profit-driven companies – and it is absolutely right that will be brought to an end.”

The new agency will directly deliver 10 of the 11 benefits being devolved to Scotland.

These include the Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Carer’s Allowance, Winter Fuel Payments and Sure Start Maternity Grant.

The SNP said the Scottish Government had so far spent more than £350m mitigating “callous” welfare cuts ordered by Conservative ministers and wanted to create a system “with dignity and respect at its heart”.

The new welfare powers are among numerous measures contained in the Scotland Act, which was drawn up following 2014’s independence referendum with the intention of bolstering Holyrood.

Earlier this year the Scottish Government said it would use the powers to increase the frequency of Universal Credit payments, giving claimants the option to be paid fortnightly instead of monthly.