IT costs for Scotland's social security system climb to £250m

IT costs for Scotland’s social security system have now soared to more than £250 million, as the Scottish Government was urged to “get a grip” on the spiralling investment.

Figures published for the benefits system, which was devolved to Holyrood after the 2014 independence referendum, have shown a £39m rise in costs.

The increase was revealed in a letter from the Scottish Government to Holyrood’s public audit committee, first reported by the Daily Record.

First Minister Nicola Sturgeon. Picture: AP Photo/Jacquelyn Martin

Costs for the IT programme had previously been listed as £212m, meaning the figure has now grown to £251m overall. The end date of the project remains unconfirmed, the letter reveals.

Labour MSP Pam Duncan-Glancy told the Daily Record: “The SNP ’s lack of planning has led to costs soaring.

“The SNP need to get a grip of this – people can’t keep paying for their failure. We need an IT system that is person-centred and fit for the future.

“What we’ve got instead from the SNP is spiralling costs and a job half done.”

Lib Dem social security spokesperson Caron Lindsay said: “Given how poorly the SNP have handled previous projects, this does not inspire confidence. The Government must explain why there has been such a steep rise.”

Lifeline payments for disabled people, carers, parents and the elderly have been among those elements of social security devolved to Scotland, with new IT systems required to allow new claims and the transfer of existing cases.

An Audit Scotland report published earlier this year said substantial risks remained in the delivery of the benefits system in Scotland.

New benefits introduced in Scotland include the Scottish Child Payment, Child Disability Payment and Adult Disability Payment.

The Scottish Government has committed more than £3.9 billion for benefit expenditure in 2022/23.

A Scottish Government spokesperson said: “The most recently published development costs reflect costs associated with delivery of social security payments, including the creation of our ‘game-changing’ anti-poverty intervention the Scottish Child Payment, as well as additional essential support provided to people during the pandemic.

“Our pace of delivery is remarkable given the scale and complexity of what we are doing and against the backdrop of challenges during the pandemic. Our top priority is the safe and secure delivery of all benefits and case transfer to Social Security Scotland.”