Lord Bruce of Bennachie (LD)

My Lords, I thank the Minister for her introduction. I have one or two questions about both the general process of transferring social security to Scotland and its implications, specific to this instrument. As I understand it, at the moment, the carer’s allowance is £83.30 per week, and that is the same in England, Wales and Scotland. Can that be varied? I assume that it can be, under this devolved measure, but, as I understand it, that is not the intention. What is being implemented is a supplementary payment, every six months, of £293.50 to carers in Scotland. I assume that the £293.50 that we get in Scotland will not be paid to people in England, and that is the differential clarification for that. Can the Minister confirm this? This is the third or fourth instrument the Committee has debated that relates to the transfer of social security from the DWP to the Scottish Parliament and Government. I have raised this issue before but, unfortunately, we do not have SNP Members in this House, which would be useful, as they could explain exactly what is behind this. However, I can legitimately ask a UK Minister a question about the way this is presented and whether she is satisfied that the UK Government’s role in Scotland is not being undermined by the way that this is being delivered, rather than by the fact of it being delivered. In other words, I do not oppose the devolution of benefits. Members know that the leader of my party is very strong on improving support for carers, and we support that, but there is an important point here. What has happened with this and other benefits is that the UK Government have made an assessment of the cost of the claimants in Scotland and transferred that amount to the Scottish Government, who then pay it, through their own instruments, and, if they wish, add additional benefits. The problem is that the contribution of the UK Government is obscured, at least, even though it is substantially more than the top-up that the Scottish Government provides. There is nothing wrong with that in principle, but there is a lot wrong with the politics of the way it is presented. First, we have an election coming up in three months, and we are going to get SNP candidates saying that, thanks to the SNP, people will get wonderful additional benefits across the piece in Scotland. Most of those benefits are paid for by Scotland, but they have just added something. That does mean that people in Scotland are getting more—it is not as if they are not making a legitimate claim—but they are not really acknowledging where the bulk of the money is coming from. Secondly, we are heading for a financial crunch in Scotland, because a lot of these additional benefits are not being properly costed and funded. The projection I got from the Library is that the deficit on social security could be £1.8 billion in three years, and there is no real indication the Scottish Government have any way of funding that, and so a crisis might loom, or they might have to take money from somewhere else. I will make a brief, slightly out of order reference to the situation with student grants and student loans. The previous coalition Government in Scotland effectively abolished tuition fees, although the final role was delivered by the SNP Government. They will boast, quite rightly, that those who go to university in Scotland do not pay fees. However, there are two problems from that: first, Scottish universities are going bankrupt from underfunding; and, secondly, to cap the budget, the number of places offered to qualifying students in Scotland has been pushed down. An awful lot of students in Scotland are going to universities in England because they cannot get a place in Scotland, so they are actually paying fees. This is presentational stuff that the UK Government should get a grip of. I strongly believe in devolution and supported the creation of the Scottish Parliament, but I also strongly believe in the partnership between the two Governments. It is important that the people of Scotland know exactly what contribution the UK Government are making and the separate contribution that is being made by the Scottish Government. That is my point. My final point has been slightly triggered by events in the last week. The leader of Reform in Scotland— I think he is still a Member of this House, for a few more minutes—said that the party would cut taxes in Scotland at a cost of £4 billion. He has not really explained it, but clearly the implication, which the party has acknowledged, is that it would be funded by massive spending cuts across a range of things. What if, if such a Government came into being—I hope that does not happen—they then turn around and say that they are going to abolish these security benefits? Could we see a situation in which people in Scotland get no benefits, or far reduced benefits compared with people in England, as opposed to now when they get a bit more but most of their benefits are still being funded by the UK? My plea to the Minister is to take this away and have a real think about how the UK Government present the way that Scotland is being funded—what party it is does not matter, but taxpayers do. As somebody who lives in Scotland, I know that people are easily taken in by the idea that all these wonders are paid for exclusively by the magnificent stewardship of the Scottish finances by the Scottish Government, whereas anybody who knows anything about what is going on says that their stewardship has been a lot less than magnificent. We are heading for a major deficit while they are offering these kinds of sweeties to the electorate without explaining where the money comes from or how they can be funded in the long term. While in no way wishing to oppose what is being proposed, I urge the Government to have a proper look at the way in which this is presented in future and—to be frank— not allow politicians north of the border to get away with it.