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Scottish independence: Proposal to retain welfare set-up Scottish independence: 'Retain welfare set-up for transitional period'
(about 5 hours later)
A welfare working group is to recommend Scotland shares the administration of pensions and benefits with the rest of the UK in the event of independence. The administration of pensions and benefits in an independent Scotland should be shared with the rest of the UK for a transitional period, according to a welfare working group.
It is thought the Scottish government, which commissioned the report, is sympathetic to the idea. The Scottish government, which commissioned the group's report, welcomed the idea.
A large proportion of welfare payments are processed in Scotland, including about a fifth of all state pensions. But it wants the ability to reverse policies, like the housing benefit cuts which critics dubbed the "bedroom tax".
The SNP has already indicated it would continue to share a monarch and a currency if there was a "yes" vote. A large proportion of welfare payments are processed in Scotland.
The Expert Working Group on Welfare was set up January 2013 to look at the costs and delivery of welfare in an independent Scotland. The Expert Working Group on Welfare was set up by the Scottish government in January 2013 to look at the costs and delivery of welfare should there be a yes vote in the 2014 independence referendum.
In its first official report, it is expected to say that it would also make sense to keep the existing set-up for delivering pensions and benefits in the event of a "yes" vote in next year's referendum. Its report said the Scottish and UK governments have "a strong common interest in working together, to support each other in maintaining the delivery of benefit payments during an agreed period of transition".
The Scottish government is likely to back the idea for a transitional period, as long as it would not tie them into policies which they oppose, such as recent housing benefit cuts. 'Serious risks'
The working group said Scotland delivers almost all parts of the current UK benefits system to people living in Scotland from locations within Scotland. However, many services to claimants in England also come from Scotland.
The report stated: "Scotland provides a wide range of services to England. Some of these services are significant... and involve a claimant count measured in millions rather than thousands."
It said: "Immediately separating these services would present serious risks to the continuity of payments to people in both Scotland and England and so a challenge for both an independent Scottish government and a UK government representing the interests of the remaining parts of the United Kingdom."
The working group said the Scottish government's preliminary forecasts on the costs of benefit spending in Scotland through to 2017-18 were "reasonable", given the information available to it.
However, it recommended that, in the event of a yes vote, the Scottish government should build its capacity to forecast benefit spending and to assess the impact of changes to the system on individuals and households.
The report also went on to consider evidence taken from various organisations, individuals and communities with a close interest in the current system.
It then presented some possibilities for changes to the benefits system which it said could be considered in an independent Scotland.
The report said: "It is clear to us, however, that there is a very strong appetite across Scotland for a wider conversation about the principles and policies, opportunities and choices, which governments in an independent Scotland might wish to pursue."
New group
Deputy First Minister Nicola Sturgeon welcomed the findings and published an initial response to the report.
She said: "People want to know that benefits - including pensions - will be delivered seamlessly from the point of independence. I therefore welcome the report's finding that almost all benefit payments to people in Scotland - including all pensions - are administered from locations within Scotland.
"In other words, the infrastructure of our welfare system already exists in Scotland.
"The report also makes the point that millions of people in England receive benefits that are administered from within Scotland. In light of that, I tend to agree with the group that a transitional period of shared administration would make sense."
However, Ms Sturgeon said the Scottish government would only accept the sharing of services if that would not prevent it from reversing welfare policies it opposed, including changes to housing benefits.
She added: "I am very clear that a transitional period of shared administration would only be in Scotland's interests if it allows us, from day one of independence, to address the inequities of the current system and work towards a system that better reflects Scotland's needs and circumstances."
The deputy first minister announced that a new group would now look at the medium and longer-term options for reform of the welfare system in an independent Scotland.