Internal coordination of social security in the United Kingdom
| DOI | 10.1177/1388262719844984 |
| Date | 01 June 2019 |
| Published date | 01 June 2019 |
| Subject Matter | Articles |
EJSS
Article
European Journal of Social Security
2019, Vol. 21(2) 153–162
Internal coordination
ª The Author(s) 2019
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of social security
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DOI: 10.1177/1388262719844984
in the United Kingdom
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Ed Gareth Poole
School of Law and Politics, Cardiff University, Wales, UK
Guto Ifan
School of Law and Politics, Cardiff University, Wales, UK
Abstract
Although social security is traditionally viewed as a highly centralised function in the UK, health
care and long-term social care have long been devolved to sub-state governments, an arrangement
requiring extensive internal coordination agreements. This coordination has various objectives,
including ensuring parity of benefits provision in Northern Ireland (where social assistance is
devolved) and Great Britain (where it is centralised), securing financial reimbursements for cross-
border health care provision, and determining responsibility and eligibility criteria for individuals in
need of social care. Further devolution and decentralisation of social security benefits over the past
decade have made such coordination arrangements even more essential.
Keywords
United Kingdom, devolution, health care, long-term social care, social assistance, internal
coordination
Extent of devolution and decentralisation
This article outlines the extent of devolution and decentralisation in the areas of health care, long-
term social care, family allowances and social security in the United Kingdom, describes how
competences of devolved and local government are adjudicated in these areas, and summarises the
financial arrangements governing the coordination of these schemes. Many of these functions are
partly or wholly devolved, either to the UK’s three devolved administrations in Scotland, Wales
and Northern Ireland, or to local government in England.
Corresponding author:
Dr. Ed Gareth Poole, Lecturer in Politics and International Relations, School of Law and Politics, 21 Park Place, Cathays,
Cardiff, CF10 3DQ, UK.
E-mail: pooleeg@cardiff.ac.uk
154
European Journal of Social Security 21(2)
This first section outlines the specific areas of health care, long-term social care, family allow-
ances and social security that have been subject to devolution or decentralisation, explaining the
governance arrangements that have led to divergences in social protection schemes.
Territorial divisions of health and social security competences in the UK
Following affirmative votes in devolution referenda in Scotland (1997), Wales (1997), and North-
ern Ireland (1998), the UK Parliament passed three Acts that organised or re-established devolved
government in the UK. These Acts and their successors1 established three devolved legislatures
which exercise varying powers and competences which had previously been exercised at the UK
level. Devolution has transformed territorial politics in the United Kingdom, traditionally regarded
as a pre-eminent example of a state that concentrated executive power at the central level.
The most significant area of devolved spending competence in Scotland and Wales is
health care. Since the creation of the publicly-funded and operated National Health Service (NHS)
in 1948 there has existed some territorial divergence: health care was administered in Scotland,
Northern Ireland and Wales (from 1969) by separate health departments. Since 1999 however, this
administrative devolution has been matched with significant political and legislative devolution.
While the UK Government retains responsibility for health care in England, the devolved exec-
utives have extensive powers; in particular over NHS funding, policy prioritisation and
administration.
Responsibility for funding and specifying arrangements for long-term social care is also
devolved. This has resulted in some notable differences in provision, including the amount that
older people assessed as needing social care are required to pay towards costs (CASPeR 2016).
Except for Northern Ireland, where long-term social care is managed by regional boards, the
devolved governments (and the UK Government for England) have decentralised responsibility
for delivering long-term social care at the local level. For example, the Care Act 2014 clarified and
introduced new legal responsibilities and funding for English local authorities.
However, as in most other European countries, primary competence for welfare assistance and
the redistributive elements of major taxes and benefits have largely remained reserved to the UK
level. Devolved competences apply mainly to the ‘distributive’ services of health, education and
social services (Lodge and Trench 2014). Social Security schemes across Great Britain (i.e. in
England, Scotland and Wales) are generally administered by the UK Government’s Department for
Work and Pensions. The Department provides social security benefits, pensions, child allowances
and direct cash benefits for disabled people, carers and those with care needs.
The division of competence is different in Northern Ireland, where social security is not
reserved to the UK under the Northern Ireland Act 1998. All social assistance schemes and family
allowances are instead devolved and administrated by the Social Security Agency, a division of the
Northern Ireland Executive’s Department for Communities. In practice, however, a parity princi-
ple has been adopted to maintain social security benefits at the same level as in Great Britain (see
section 2 below). The system does, however, allow for some discretion, particularly in social
security administration.
1. Scotland Acts 1998 and 2016; Government of Wales Acts 1998 and 2006; Wales Acts 2014 and 2017; and Northern
Ireland Act 1998.
Poole and Ifan
155
Recent changes to social security devolution in the UK
Despite social security remaining a central competence in Great Britain, recent years have seen a
partial but notable shift away from this highly centralised system of social security. Immediately
following the narrow ‘No’ vote in the 2014 Scottish independence referendum, proposals brought
forward by an investigative commission on new fiscal and welfare powers for Scotland were
subsequently enacted by the Scotland Act 2016. This Act devolved 11 social security schemes
to the Scottish Parliament, involving approximately 15 per cent of all Scottish benefit spending.
The devolved schemes relate to long-term social care and social assistance. The Scottish Parlia-
ment has also been granted the power to make administrative changes to the UK Government’s
Universal Credit and to vary the housing cost element. To administer these devolved responsi-
bilities, the Scottish Government has established a new agency, Social Security Scotland.
Although the Scottish Parliament has new powers to deviate from or replace UK benefits, this
can only be done within the terms set out...
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