As we witness the destitution caused by welfare reform, it can be hard to believe in the possibility of a better future, one where the original promise and intent of social security is reclaimed. And yet that is exactly what is happening in Scotland, which is making historic use of powers under devolution to set out a distinctive agenda. Last month, the social security (Scotland) bill was unanimously passed into law to applause from all parties. It sets out a rights-based approach to the administration of 11 benefits devolved to Holyrood, including disability living allowance and personal independence payments, that will affect 1.4 million people. It is underpinned by seven principles, above all the recognition that social security is a human right, which represents an investment in the people of Scotland, and which has a role to play in reducing poverty. It also features the principle that “respect for the dignity of individuals is to be at the heart of the Scottish social security system”. Such principles have been notably missing from Westminster.

In research I conducted with people directly affected by changes to their benefits, I have heard again and again how the UK system is characterised by disrespectful and undignified treatment, with individuals left feeling stigmatised, belittled and treated as part of a problematic population. Individuals, such as young jobseeker James, pick up on the dehumanising nature of claiming benefits: “You’re just another number, you’re not a person.” In an exercise to draw an imaginary, good, back-to-work adviser, they call for advisers who are polite, friendly, listen and are less forceful. Susan, a single-parent jobseeker, simply wanted an adviser to say: “would you like to” rather than “you must”. Small asks that hint at what is absent from the UK system.

The Scottish principles seem to recognise the experiences of social security claimants and this is in part because of the Scottish government’s active involvement of both the third sector and those people in the bill’s development. Again, a marked divergence is notable here from the approach at Westminster, where the Department for Work and Pensions so often seems to be proceeding in spite of, rather than because of, the evidence base.

In translating the bill’s principles into action, Scotland will need to create processes for determining eligibility for devolved disability benefits, develop its own social security agency and create employment support programmes underpinned by voluntary participation. Holyrood will also make use of its powers to top up benefits by providing an income supplement for families. And it has pledged to use devolution to increase support for carers. In each case, there are possibilities for Scotland to deliver real improvements and for the rest of the UK to learn from it.

More and more, your experiences of social security will vary depending on where in the UK you live, something which is already notable with universal credit. In England and Wales, the monthly payment of the benefit has increased financial pressures on affected households, while rises in rent arrears, evictions and homelessness have been linked to the housing element being paid direct to the tenant. In Scotland, individuals can choose to receive fortnightly payments and can opt to have their housing benefit paid to their landlord. Providing a vital safeguard against financial control and abuse, Scotland will also split payments to adults within a household, rather than the English and Welsh practice of paying only one adult within a claim. While these varying payment arrangements might appear technical and small-scale, they may well significantly affect experiences of universal credit and so do really matter for those at the harsh end of welfare reform.

Although the new social security powers in Scotland will account for only 15% of its total benefits bill, they are radical in their underpinning principles and in their recognition that social security doesn’t need to start from the degradation of the lives of those who receive it. It can be a force for good. As Jeane Freeman MSP, the minister for social security, said during the passage of the bill: “today, I think we have achieved something that is not only important, it is also a bit special.” This is hugely important not just for Scotland, but for all of the UK to learn from; that another way is possible.

• Ruth Patrick is a researcher in the school of law and social justice at the University of Liverpool and is author of For Whose Benefit? (Policy Press, £24.99). To order a copy go to guardianbookshop.com or call 0330 333 6846. Phone orders min p&p of £1.99.