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Scotland Bill will give benefit 'top up' powers, says Mundell 'Constructive talks' over Scotland Bill
(about 9 hours later)
The Scottish government will be able to "top up" tax credits and child benefit payments as part of new powers coming to Holyrood, David Mundell has said. The UK government has said it expects a deal by the end of the month on the financial framework which will accompany the further powers to be devolved to Holyrood.
The Scottish Secretary said the Scotland Bill, currently going through Westminster, would be a "game-changer" ushering in a "new era of devolution". It followed talks in London between Scottish Secretary David Mundell and the Scottish government's Alex Neil.
The Scottish government is launching a paper on using new welfare powers. Mr Neil described the discussions as "constructive".
Social Justice Secretary Alex Neil said his party would not "take an approach that punishes the vulnerable". But he said agreement would depend on amendments to the bill, which have still not been published.
As part of the Scotland Bill, MSPs at Holyrood will be be able to set income tax rates and bands and will also get new powers over welfare. Scottish Finance Secretary John Swinney has previously said the Scottish government would block new powers for Holyrood unless there was an acceptable deal on the financial framework.
Last week Mr Mundell said the UK government was keen to see the new powers transferred earlier than planned - by April 2017. 'Principles and values
The Scottish government has said the new legislation does not go far enough and has warned it will not recommend MSPs approve the legislation if it believes the funding arrangements linked to the bill are unfair. Ahead of the meeting between Mr Mundell and Mr Neil, the Scottish government announced it would publish a new paper by the end of the year setting out its vision of how the new welfare powers contained in the Scotland Bill could best be used.
The SNP has also been critical of UK Government plans to cut tax credits for working families. Speaking later, Mr Neil said: "We had another constructive meeting today but have yet to see any tangible progress or detail of any of the amendments promised by the UK government.
Talks between the two governments on the welfare proposals are due to take place later. "It is absolutely crucial that we get the chance to comment on them as meaningful consultation with the Scottish government is essential to strengthen the Scotland Bill so that it reflects both the spirit and substance of the Smith recommendations.
Ahead of the discussions, the Scottish Secretary called on Holyrood ministers to set out both how they would use new welfare powers and how they would pay for any changes. "The Scottish public deserve clarity over our new powers which is why I have now requested a clear timetable."
The Scottish government says the powers in the Scotland Bill do not go far enough, and has called for greater control over welfare to be handed to the Scottish Parliament.
It has also been critical of UK government plans to cut tax credits for working families.
But Mr Mundell said the Scottish government would be able to "top up" tax credits and child benefit payments as part of new powers over welfare.
'Introduce payments'
He said: "Scottish government ministers will be able to design a significant part of Scotland's welfare system and control income tax to pay for it.He said: "Scottish government ministers will be able to design a significant part of Scotland's welfare system and control income tax to pay for it.
"If they want to top up existing benefits, they will be able to. If they want to introduce payments to those in short-term need or design new benefits in those welfare areas being devolved that will also be an option available to them. "If they want to top up existing benefits, they will be able to. If they want to introduce payments to those in short-term need, or design new benefits in those welfare areas being devolved, that will also be an option available to them.
"Powers in the Scotland Bill ensure Scottish Parliament will have the means to pay for any changes, but it will have to justify them to the public, as under the new arrangements, income tax raised in Scotland will stay in Scotland and be spent in Scotland." "Powers in the Scotland Bill ensure the Scottish Parliament will have the means to pay for any changes, but it will have to justify them to the public, as under the new arrangements, income tax raised in Scotland will stay in Scotland and be spent in Scotland."
However, Scotland's Finance Secretary John Swinney has suggested the Scottish government may not be able to afford to top up benefits.
He told the BBC's Sunday Politics Scotland show: "What we're having to deal with, of course, will be very significant reductions in benefits in Scotland.
"We estimate that by 19/20 the cuts in the benefit provision for Scotland will be about £6bn.
"If you're asking me can we afford to find £6bn to replace all of those cuts, then at this stage it looks very unlikely that we would be able to do that."
'Fair and efficient'
Social Justice Secretary Mr Neil said any new system set up following the transfer of welfare powers to Holyrood would "have at its heart a set of principles and values."
The SNP will ensure "people are treated with respect and dignity when applying for, being assessed for, and receiving disability-related benefits," he stated.
Mr Neil said his party's approach would focus on "fairness, accessibility and stability".
Scottish ministers will publish a further paper by the end of the year setting out their outline vision for social security in Scotland.
Mr Neil added: "It is also important that the system is fair and efficient - that the investment we all make in social security is well managed and is directed at the people who need it, in the way that will support them best.
Labour's Shadow Scottish Secretary Ian Murray said: "I want the Scottish government to have the power to create new benefits, to protect the vulnerable from Tory cuts and to raise all the money it needs for public services."Labour's Shadow Scottish Secretary Ian Murray said: "I want the Scottish government to have the power to create new benefits, to protect the vulnerable from Tory cuts and to raise all the money it needs for public services."
"It is time for the politics to stop and for the SNP government to get on with using powers now.""It is time for the politics to stop and for the SNP government to get on with using powers now."