New Holyrood powers will be ‘meaningless’

“The bill misses the opportunity to resolve these issues and instead focuses on minor matters which don’t make a difference to people’s lives,” he said ahead of the meeting today of the Holyrood committee examining the bill.

The focus of the legislation has so far been on the plans to hand sweeping new tax-raising powers to MSPs. The SCVO says in a submission to the Scotland Bill committee at Holyrood that it needs to address the current clash between Westminster and Holyrood over the direction of public services, which is a “recipe for confusion”.

The root-and-branch reforms of the welfare system being pushed through by the coalition are at odds with the “direction of travel” at Holyrood on health and social care, it said. Other groups, such as Citizens Advice Scotland (CAS), are also warning that the UK Welfare Reform Bill will “devastate” Scotland and are calling for MSPs at Holyrood to intervene.

“The Scotland Bill ignores the real areas where devolution clashes with UK policy – health and care, benefits, employability,” Mr Sime said. “The value of the Scotland Bill is now virtually meaningless, as the major disparities in powers that will directly impact on Scotland’s people and communities have been ignored.

“Aspects of reserved powers can, and are, being used in ways which impinge on the ability of Scottish ministers to exercise devolved powers.”

The coalition government’s programme of welfare reforms will have a “largely detrimental” impact on many Scottish families, according to the SCVO.

The new personal independence payment (Pip), which replaces disability living allowance, has been widely criticised for its “life and limb” approach to care, while Scottish ministers favour a more personalised approach through measures such as the Self Directed Support Bill.

“The current devolution settlement is causing difficulties as there is a divergence of policies and this is likely to result in increasing difficulties for those directly affected,” the SCVO states in a briefing document. Councils, which are having to pick up some of the costs being dropped by Westminster and third-sector organisations are also being affected, the organisation says.

Susan McPhee, head of policy at CAS Scotland, said the welfare system was being “dismantled” by Westminster legislation and would take £2 billion out of the Scottish economy.

“The Welfare Reform Bill will have a major and damaging impact on the people, services and the economy of Scotland,” she said.

“As the current welfare system is dismantled, it is Scotland’s public and voluntary services that will need to pick up the pieces – at a time when they are facing huge cuts themselves.

“This ‘double whammy’ for the people of Scotland should be addressed by the Scottish Parliament.”

CAS will also give evidence at today’s committee and warn that the Scottish Parliament is not giving enough scrutiny to the “seismic” impact the changes will have on Scotland, and needs to take the rare step of establishing a special committee to do this – even though the issue is reserved to Westminster.

Ms McPhee added: “We believe a welfare reform committee should be established for the lifetime of this parliament, so that it can analyse and scrutinise the welfare reform changes as they are introduced and implemented. There must be a role for MSPs to oversee how the changes affect Scotland’s citizens and services.”

People with disabilities face the biggest impact from the proposed reforms, according to CAS. It is warning that re- assessments for sickness and disability benefits, alongside cuts in public services, will inevitably mean that many people will not receive the support to deal with their disabilities that they currently rely upon.

“Whether you agree or disagree with the principles of the Welfare Reform Bill, the fact must be recognised that the proposals as they stand merit much more scrutiny, investigation and understanding,” Ms McPhee said.

The SCVO also voiced concerns about the “lack of credibility and understanding” in relation to the new tax-raising powers, which will see income tax in Scotland effectively cut by 10p and MSPs given the power to raise this in line with need.

The Scottish block grant will be cut to balance out the extra revenues.

The SNP fears the measure will damage Scotland’s public finances and wants a veto on its implementation.

The issue has flared up in recent weeks after a number of witnesses giving evidence to the Holyrood bill committee struggled to explain the plans.

“We need to rethink how we develop devolution,” Mr Sime said. “We should start by considering what kind of Scotland we want to see and what kind of change we want to happen. The real debate is about the future of Scotland we want to see not a bill which is now irrelevant.”

With an independence referendum looming towards the end of this parliament, he also says that the Scotland Bill has been “overtaken by events.” In its submission to the committee the Scottish Campaign on Welfare Reform wants to see “devolution of certain aspects of welfare reform” and call for “welfare benefits in Scotland suitable for Scotland”.

It cites the needs of families and communities, pointing out that the UK governments plans are ill-advised.