Date lodged: 10 January 2018
To ask the Scottish Government how much it paid the Department for Work and Pensions for the implementation of the flexibilities introduced by the Universal Credit (Claims and Payments) (Scotland) Regulations 2017.
Answered by: Jeane Freeman 31 January 2018
The cost for the DWP to deliver the Scottish Universal Credit choices is determined by a model jointly built by the DWP and the Scottish Government based on how we expect people to take up the choices. This model takes a unit cost approach. It looks at the cost of different actions, such as someone taking up a choices digitally, or calling to ask about the choices, and multiplies these by the number of people who do this. The Scottish Government and the DWP has agreed an estimated unit cost of just under £2.50 for each choice that is administered for a new claim in 2017-18.
We will review this model and its assumptions and refine them in light of the management information the DWP is collecting for us, in order to agree a final cost for delivery of the choices once they have been live for 6 months. We will then review and update the model annually and adjust accordingly the cost to be paid to DWP each year. The Scottish Government will only pay for the actual number of choices offered and taken up.