Ombudsman raises concerns over fairness of Scottish Welfare Fund

The Scottish Public Service Ombudsman (SPSO) has raised concerns around the fairness and consistency of grants awarded through the Scottish Welfare Fund (SWF).

In a new report published today, the SPSO has highlighted issues with the distribution of the fund, which provides grants to those in crisis.   

It has raised concerns over the application of the High Most Compelling (HMC) priority rating by some local authorities, which it says limits funding to individuals in severe crisis.  

The report found that the priority rate is being used by more local authorities and is being applied earlier in the financial year than ever before.  

Councils say this approach enables the funding to go further, ensuring that sustained support to those most in need is available throughout the year.  

However, the SPSO is worried this approach will impact the effectiveness of the SWF and could “deepen hardship” in some areas and lead to increased inequalities across the country.   

The report notes the financial challenges faced by local authorities, as well as “ambiguous guidance” on both adopting the HMC priority rating and assessing applications under it.  

The SPSO's report comes before the implementation of the Scottish Government’s review action plan of the SWF, which was published in June last year.   

It sets out improvements that can be made around the way crisis support is delivered in Scotland, including further training for local authority decision-makers and improving local authorities' communication with applicants.  

Rosemary Agnew, the Scottish Public Services Ombudsman said: “My report highlights an issue affecting those experiencing the most vulnerability in Scottish society.  

“I am seeing developments that are resulting in access to support differing between local authorities, potentially deepening inequalities across our country. 

“I recognise the challenges faced by the Scottish Government and local authorities, and through this report encourage constructive discussions to improve the Scottish Welfare Fund in the future.”