Corporate report

Carer's Allowance in Scotland: Agency Agreement

Updated 30 April 2025

Version 6

Key personnel Name Role
[REDACTED] [REDACTED]
Owner Barbara Bennett DWP Director General, Operations
Owner Stephanie Devenny Deputy Director, Finance and Corporate 天美影院, Social Security Scotland

[REDACTED]

1. The Agreement听

1.1. This Agency Agreement (hereafter referred to as 鈥榯his Agreement鈥) is entered into between the Secretary of State for Work and Pensions acting through the Department for Work and Pensions of Caxton House, Tothill Street, London, SW1H 9NA (DWP) and the Scottish Ministers of St Andrew鈥檚 House, Regent Road Edinburgh, EH1 3DG.听

1.2. References to the Scottish Government (SG), the Scottish Ministers or Social Security Scotland will, as appropriate, be read as also including reference to each of the other entities.听

1.3. References to Secretary of State for Work and Pensions shall be read as including reference to the Department for Work and Pensions (DWP), as appropriate, and vice versa.听

1.4. DWP and Scottish Ministers each constitute a 鈥楶arty鈥 and together constitute the 鈥楶arties鈥.听

2. Purpose听

2.1. Pursuant to Section 93 of the Scotland Act 1998, the Secretary of State for听Work and Pensions may perform, on behalf of the Scottish Ministers, functions specified under the Scotland Act 1998 (Agency Arrangements) (Specification) Order 2018 鈥 Statutory Instrument (S.I.) 2018/626. The Scottish Ministers have asked and the Secretary of State for Work and Pensions agrees to perform those functions, in accordance with this Agreement, insofar as they relate to the delivery of Carer鈥檚 Allowance to people resident in Scotland.听听

3. Duration听

3.1. The Initial Agreement commenced on 3 September 2018 immediately upon听transfer of executive competence for Carer鈥檚 Allowance to the Scottish听Ministers, in accordance with the Scotland Act 2016 (Transitional) Regulations 2017 鈥 S.I. 2017/444.听听

3.2.1. A further Agency Agreement (鈥渢he 2023 Agreement鈥) was effective from 1 January 2023 and remained effective up to and including 31 March 2025.听听

3.3. This Agreement replaces the 2023 Agreement. It shall be effective from and including 1 April 2025 (鈥榯he Commencement Date鈥) and, unless terminated earlier in accordance with its terms, will remain effective up to and including 31 March 2026 (鈥榯he Term鈥).听

3.4. This Agreement may be varied, to include affecting a termination of this Agreement, by mutual written Agreement of both Parties at any time during the Term.听

3.5. DWP and the Scottish Ministers have agreed a case transfer plan for the orderly transfer of existing claims for Carer鈥檚 Allowance for claimants resident in Scotland from DWP to the Scottish Ministers or, in practice, Social Security Scotland which will deliver the services for the Scottish Ministers. During the Term of this Agreement, case transfer will include any residual cases and any cross border activity where a customer changes address from England/Wales to Scotland. DWP and the Scottish Ministers will have also agreed a business transition plan providing for the orderly transition of any other functions exercised under this Agreement from DWP to the Scottish Ministers and an orderly exit, at the end of the Term, from the agency arrangements set out in this Agreement.听

4. Derivation

4.1. This Agreement forms an annex to the 鈥楳emorandum of Understanding听between the Scottish Ministers and Secretary of State for Work and Pensions on joint working arrangements covering the implementation of devolved provisions in the Scotland Act 2016 relating to Social Security and Employment Support 天美影院 in Scotland鈥, and will be read in conjunction with the following documents and any subsequent arrangements which are agreed and support this Agreement, insofar as they are not replaced or terminated in the future:听

Document Version/Date
Concordat between The Department for Work and Pensions and Scottish Government March 2020
Memorandum of Understanding and Supplementary Agreements on Devolution between the United Kingdom Government, the Scottish Ministers, the Welsh Ministers, and the Northern Ireland Executive Committee (MoU on Devolution) October 2013
Memorandum of Understanding (MoU) between Scottish Ministers (SM) and Secretary of State for Work and Pensions (SSWP) on joint working arrangements covering the implementation of devolved provisions in the Scotland Act 2016 relating to Social Security and Employment Support 天美影院 in Scotland (SM/SSWP Single MoU) January 2023
The Agreement between the Scottish Government and the United Kingdom Government on the Scottish Government鈥檚 Fiscal Framework August 2023
Scottish Devolution: A Framework for Audit and Accountability March 2019
Scottish Devolution: Financial Arrangements for Formal Agreements. October 2023
DWP and Scottish Government Joint Communications Framework December 2023

The Agreements cited below were an annex to the 鈥SM/SSWP Single MoU鈥 as referenced above and should be consulted for details of the earlier arrangement agreed.听听

Initial Agency Agreement (including variations of that Agreement agreed from time to time) between the Secretary of State for Work and Pensions and the Scottish Ministers in respect of Carer鈥檚 Allowance for People Resident in Scotland September 2018
The 2023 Agreement (including variations of that Agreement agreed from time to time) between the Secretary of State for Work and Pensions and the Scottish Ministers in respect of Carer鈥檚 Allowance for People Resident in Scotland January 2023

5. Delivery of Carer鈥檚 Allowance听

5.1. Prior to the launch of Carer Support Payment in November 2023, DWP, on behalf of and as agreed with, the Scottish Ministers, continued to听process new claims to Carer鈥檚 Allowance for an interim period, whilst the听Scottish Government prepared to take new applications to Carer Support Payment. Carer Support Payment launched for new applications in November 2023 and was extended to further areas in June and August 2024 and became available nationally from November 2024. The administration of Carer鈥檚 Allowance in Scotland was consistent with the delivery of Carer鈥檚 Allowance and its related functions under the same procedures that cover the delivery of Carer鈥檚 Allowance to people resident in England and Wales.听听

5.2. Under an agreed programme of case transfer during the term of this Agreement, all relevant Carer鈥檚 Allowance claimants resident in Scotland will transfer to Social Security Scotland from DWP. During the term of this Agreement, case transfer will include residual cases and any cross border activity where a customer changes address from England/Wales to Scotland.听听

5.3. During the term of this Agreement, DWP will, on behalf of and as agreed with the Scottish Ministers, continue to deliver an operational service for people resident in Scotland with existing Carer鈥檚 Allowance claims, consistent with the delivery of Carer鈥檚 Allowance and its related functions under the same procedures that cover the delivery of Carer鈥檚 Allowance paid to people resident in England and Wales. This Agreement covers all people resident in Scotland and in receipt of Carer鈥檚 Allowance during the Term of this Agreement. This includes any residual cases and any cross border activity,鈥痺here a customer changes address from England/Wales to Scotland.听听

5.4. For the avoidance of doubt, this means that the Scottish Ministers will not request changes to the DWP business as usual procedures and processes.听听

5.5. The delivery of Carer鈥檚 Allowance includes delivery of all associated functions, such as administration of the award, notifying other parts of DWP that an award of benefit has been made, handling queries on individual claims and general enquiries, debt recovery action and investigating information that would indicate fraud and/or error has occurred on a claim. This list is not exhaustive.听

5.6. Information on the DWP Carer鈥檚 Allowance can be found in the DWP Decision听Makers Guide. This is an approved guide to help Carer鈥檚 Allowance Case听Managers make decisions. It is a plain English representation of social听security law and case law. It can be found on www.gov.uk at:听

Decision Makers Guide

Decision Makers Guide 鈥 Vol. 10 Chapter 60 鈥 Carer鈥檚 Allowance

5.7.听Any recent updates and/or amendments to this guidance can be found at DWP Decision Makers Guide听听

5.8. During the Term, Carer鈥檚 Allowance cases including residual cases and any cross border activity, where a customer changes address from England/Wales will transfer to Social Security Scotland from DWP. Social Security Scotland will create new client awards based on the existing DWP award components and rates. Cases will be transferred based on selection criteria and transfer processes which will be jointly agreed between DWP and the Scottish Government.听

5.9. This Agreement relates to Carer鈥檚 Allowance as delivered by DWP on behalf听of Scottish Ministers, it does not relate to Carer Support Payment. For the Term of this Agreement, the Scottish Government will maintain parity with DWP鈥檚 rates of Carer鈥檚 Allowance as part of the normal up-rating cycle.听

5.10. For the Term of this Agreement, the Scottish Government will maintain parity with DWP in terms of the eligibility criteria to all Carer鈥檚 Allowance claims.听

5.11. There will be no difference in the application of debt policy to Carer鈥檚 Allowance as delivered in Scotland (and England/Wales) by DWP, during the Term of this Agreement. This will include but will not be limited to recovery methods and rates, hardship considerations, priority order, write-off, and waivers.听

5.12. For surveillance matters, under section 8(1) of the Regulation of Investigatory听Powers (Scotland) Act 2000 (鈥榯he 2000 Act鈥), individuals holding such offices, ranks and positions as are prescribed, may grant authorisations under sections 6 and 7 of that Act for the use of directed surveillance and covert human intelligence sources respectively. Article 2(2) of, and Schedule 1 to, the Regulation of Investigatory Powers (Prescription of Offices, etc. and听Specification of Public Authorities) (Scotland) Order 2010 (鈥榯he 2010 Order鈥),听as amended in 2018 and 2020, prescribes the person(s) authorised to grant听authorisations. The Scottish Administration, of which Social Security Scotland is a part, is prescribed as a relevant public authority for the purposes of听section 8 of the 2000 Act.听

5.13. An operational process has been developed and agreed between both Parties that reflects the 2010 Order (as amended) that is in force for benefits听administered under Agency Agreements.听听

6. Revisions and changes to Carer鈥檚 Allowance

6.1. DWP agrees to inform the Scottish Ministers as soon as practically possible of听any changes to Carer鈥檚 Allowance or supporting legislation that may impact on听or require changes to the functions carried out on behalf of the Scottish Ministers. Both Parties would need to agree whether a revision to this Agreement is required.听

6.2. Both Parties shall act transparently and will work in a practical way in resolving any issues that may arise, in the spirit of co-operation, trust, respect and confidentiality. This Agreement will be reviewed, as required, through the Joint Ministerial Working Group on Welfare.听

7. Disputes听

7.1. In the first instance DWP and Scottish Ministers will notify each other of any issues, concerns or complaints regarding any matter covered by this agreement. Contact will be made by the owners of this Agreement.听

Scottish Government DWP
Stephanie Devenny, Deputy Director, Finance and Corporate 天美影院, Social Security Scotland, REDACTED Barbara Bennett, DWP Director General, Operations,听REDACTED

7.2. The process for dispute resolution is outlined in Section 6 (Escalation) of the 鈥SM/SSWP Single MoU鈥, as referenced in Section 4 (Derivation) of this Agreement.听听

8. Litigation

8.1. The Scottish Ministers will notify DWP and Office of the Advocate General听(OAG), by email, within three (3) working days of the receipt of any pre-action听correspondence, initial writ, petition or claim in the Sheriff Court or any petition for judicial review in the Court of Session in relation to Carer鈥檚 Allowance or听any other devolved benefit which is being administered by DWP, or any legal听challenge in relation to data protection, which is raised by a person resident in听Scotland and/or relates to a decision or action of DWP made before the Commencement Date or made during the Term of this Agreement. DWP will conduct any such litigation on the basis of business as usual arrangements.听

8.2. DWP agree to inform the Scottish Ministers, as soon as practically possible,听on the progress of any judicial review or challenge in relation to data protection, or any decision in such litigation proceedings, which has an impact on the delivery of Carer鈥檚 Allowance or any other devolved benefit to people resident in Scotland which is being administered by DWP. DWP will conduct any such litigation on the basis of business as usual arrangements.听听

8.3. DWP and the Scottish Ministers agree in relation to any challenges brought in听a tribunal by a claimant resident in Scotland, or where the claim relates to听decisions or actions of DWP in relation to Carer鈥檚 Allowance that:听

  • DWP will conduct any such litigation at the First tier and Upper Tribunal in accordance with their business as usual arrangements,听听

  • DWP will liaise, where necessary, with OAG to conduct any litigation conducted in the Upper Tribunal, and听

  • Where appropriate OAG will instruct Standing Junior Counsel from the Advocate General鈥檚 panel or Senior Counsel authorised by the Advocate General to appear on behalf of DWP and conduct litigation in accordance with DWP policy.听

8.4. The decisions or actions of DWP mentioned at paragraph 8.3 are ones which are made by DWP before the Commencement Date or during the Term of this Agreement.听

8.5. Where a judicial review claim or a challenge brought in the Upper Tribunal relating to a matter covered by paragraphs 8.1, 8.2 or 8.3 above raises a devolution issue as defined in Schedule 6 of the Scotland Act 1998, DWP will, as soon as practically possible, notify the Scottish Ministers and OAG of the devolution issue. DWP and/or OAG will normally retain conduct of the litigation in accordance with the arrangements under paragraphs 8.1, 8.2 and 8.3 above. The Advocate General has a statutory role in relation to devolution issues as does the Lord Advocate. Accordingly, OAG will discuss litigation strategy in such cases with DWP and the Scottish Government Legal Directorate on a case by case basis. OAG and DWP may agree that the Scottish Government Legal Directorate leads on the conduct of the litigation in cases where a Scottish court or tribunal has directed that they should do so, or where the Advocate General (in consultation with DWP) and the Scottish Ministers, consider that is appropriate. Nothing in this agreement affects either the Advocate General鈥檚 or the Lord Advocate鈥檚 statutory role in relation to devolution issues.听听

8.6. The Scottish Ministers agree to notify DWP, by email, within three (3) working听days of any challenge which is brought in a tribunal by a claimant resident in听Scotland which relates to decisions or actions of DWP in relation to Carer鈥檚听Allowance which were made before the Commencement Date or during the Term of this Agreement.听

8.7. The Scottish Ministers agree that, within three (3) working days of initial听receipt of any correspondence, initial writ, petition or claim referred to in听paragraph 8.1 above, they will issue an acknowledgement to the pursuer or听claimant noting that their correspondence, initial writ, petition or claim has听been forwarded to DWP and OAG. DWP will respond to any such pre-action听correspondence, initial writ, petition or claim in accordance with business as听usual arrangements.听

8.8. Where, as a result of a decision of a Tribunal or higher courts, or because DWP itself becomes aware of an administrative error which occurred prior to the Commencement Date or occurs during the Term of this Agreement, a Legal Entitlement and Administrative Practices (LEAP) exercise is necessary, or DWP suspects a LEAP exercise may be necessary then, where the LEAP exercise relates to Carer鈥檚 Allowance and impacts claimants resident in Scotland, DWP agrees to inform the Scottish Ministers as soon as is reasonably practicable鈥 of the need, or potential need, to conduct a LEAP exercise, the reason the exercise is required, or potentially required, the scale and scope of the exercise (if known), and how it will conduct any such LEAP exercise (if known). DWP will plan, organise and administer any such LEAP exercise in accordance with business as usual arrangements.听

8.9. DWP and the Scottish Ministers agree that should there be any ongoing litigation or LEAP exercise conducted in accordance with the paragraphs above at the time the case was due to transfer, during the Term of this Agreement, that case will transfer from DWP to Social Security Scotland in accordance with the agreed case transfer process.鈥 In exceptional circumstances, if the nature of the litigation means that it is necessary or鈥痑ppropriate not to transfer a case at the time the case was due to transfer then such case transfer may be delayed by agreement between DWP and Scottish Ministers.听

8.10. When a case is transferred in circumstances described in paragraph 8.9, DWP and Scottish Ministers will co-operate until the conclusion of that litigation or LEAP exercise and Scottish Ministers will provide any documents or information as DWP may reasonably request to assist with the litigation or LEAP exercise. DWP will inform Scottish Ministers as soon as reasonably practicable of the outcome of the litigation or LEAP exercise and provide any documents or information used to support that outcome that may reasonably be required by Scottish Ministers to make any required consequential changes to a claimant鈥檚 entitlement (subject to any applicable Scottish regulations governing such benefit) and Scottish Ministers and DWP will cooperate as necessary to implement any such changes.听

8.11. DWP and the Scottish Ministers agree that any litigation which has not听concluded at the end of the Term of this Agreement will continue to be administered by DWP, conducted in accordance with the above paragraphs,听beyond the end of the Term until the conclusion of that litigation.听听

9. Business Continuity听听

9.1. If the DWP business continuity plans are invoked which affect delivery of听Carer鈥檚 Allowance to people resident in Scotland, DWP will advise the Scottish Government Single Point of Contact (SPoC) of the issue, impact and听resulting action as soon as reasonably practicable via the Single Point of听Contact (SPoC) below.听听

REDACTED听

10. Management Information听

10.1. DWP and the Scottish Ministers have agreed Management Information (MI) will be supplied to Social Security Scotland to enable them to discharge听accountabilities on the following principles relating to the delivery of Carer鈥檚 Allowance:听听

  • DWP will not create new MI reports that detail performance, specifically for claimants resident in Scotland.听

  • MI will only be supplied showing performance, at a Great Britain level, of delivering the functions discharged on behalf of the Scottish Ministers. DWP will not supply data specific to Scotland, unless it is currently available and easy to access.听

  • MI required to inform future delivery is outside of the scope of this Agreement.听听

11. Financial Arrangements听

11.1. DWP will recharge the Scottish Ministers agreed Delegated Expenditure Limit听costs associated with the delivery of Carer鈥檚 Allowance to people resident in听Scotland, as detailed in the financial documents referenced in Section 4听(Derivation) of this agreement.听听

12. Audit听

12.1. DWP and the Scottish Ministers will abide by the principles of audit and听accountability as set out in the jointly agreed document 鈥楽cottish Devolution: A听Framework for Audit and Accountability鈥, as referenced in Section 4听(Derivation) of this agreement.听听

12.2. DWP and the Scottish Ministers remain subject to their overall existing听accountabilities to the UK and Scottish Parliaments, and their associated audit听bodies.鈥

12.3. DWP and the Scottish Ministers will abide by the principles in the Agreement听between the Scottish Government and the United Kingdom Government on听the Scottish Government鈥檚 fiscal framework as referenced in Section 4听(Derivation) of this Agreement, Paragraph 29 of which states that 鈥楢ll costs听incurred by the UK Government where the Scottish Government is expected to听meet the costs will be subject to audit鈥.听

12.4. DWP, Social Security Scotland, National Audit Office and Audit Scotland have agreed the Special Purpose Audit Framework is being used as set out in the 鈥楩inancial Arrangements for Formal Agreements鈥 document,鈥痑s referenced in Section 4 (Derivation) of this Agreement.听

13. Operational Engagement

13.1. Both Parties will work in a practical way to promote a positive shared claimant听experience. A link between Service Delivery colleagues in Social Security听Scotland and DWP will be established to provide an opportunity for ongoing听communication and shared understanding between officials on the operational听delivery of Carer鈥檚 Allowance. Both Parties will act in the spirit of co-operation, trust, respect and confidentiality.听听

14. Communications 听

14.1. DWP, Social Security Scotland and the Scottish Ministers have agreed a communications approach ensuring a seamless claimant experience. Communications in relation to Carer鈥檚 Allowance will be as in the agreed document 鈥DWP and Scottish Government Joint Communications Framework鈥 as referenced in Section 4 (Derivation) of this Agreement. DWP, Social Security Scotland and the Scottish Ministers have agreed the following principles:听

  • Social Security Scotland will notify DWP if they are to issue any communication related to this Agreement, and of any related issues, at the earliest possible opportunity prior to publication/issue.听听

  • DWP will notify Social Security Scotland if they are to issue any communication related to this Agreement, and of any related issues, at the earliest possible opportunity prior to publication/issue.听听

14.2. DWP will not make any changes to Carer鈥檚 Allowance communications to distinguish between people resident in Scotland or England and Wales, other than for the purposes of data subject rights as noted in section 16 (Data Subject Rights) of this agreement. For the avoidance of doubt DWP will be operating on the basis of business as usual arrangements with regard to communications for Carer鈥檚 Allowance.鈥

15. Freedom of Information Requests, Parliamentary Questions, Ministerial Correspondence and 鈥楾reat Official鈥 Correspondence听听

15.1. Each Party is to follow existing processes and obligations for requests to that Party and having regard to the MoU on Devolution as well as the Concordat between DWP and the Scottish Government both as referenced in Section 4 (Derivation) of this Agreement.听听

15.2. Each Party will assist and cooperate with each other where appropriate to enable each to meet its obligations.听

15.3. This agreement does not supersede any legal obligations under the Freedom听of Information Act 2000 (FoIA) and the Freedom of Information (Scotland) Act听2002 (FoI(S)A).听听听听

16. Data Subject Rights听听

16.1. For the purposes of this Agreement, the term 鈥楧ata Subject鈥 will have the same meaning as in section 3 (5) Data Protection Act 2018 (DPA) and as referred to in the definition of Personal Data under Article 4 (1) General Data听Protection Regulation (UK GDPR).听听

16.2. The terms 鈥楶ersonal Data鈥, 鈥楥ontroller鈥, 鈥楶rocessing鈥 and 鈥楶rocess鈥 will have the same meaning as in Article 4 of the UK GDPR.听听

16.3. All current Data Protection Legislation and guidance will apply, including but听not limited to:

(a)鈥 the UK GDPR,

(产)鈥痶丑别 DPA 2018,听

(c)鈥 regulations made under the DPA 2018,听

(d)鈥 regulations made under section 2(2) of the European Communities Act听1972 which relate to the EU GDPR or the Law Enforcement Directive,

(e)鈥 the Privacy and Electronic Communications (EC Directive) Regulations听2003, and听

(f) the guidance and codes of practice issued by the Information听Commissioner.听

16.4. Requests regarding rights of a Data Subject under Chapter 3 of the UK GDPR听will be dealt with by DWP as a Controller in accordance with DWP policies.听

16.5. When the Scottish Ministers receive a request pertaining to rights of a Data听Subject under the UK GDPR, concerning Carer鈥檚 Allowance, the Scottish Ministers will acknowledge the request and will forward the said request to DWP within three (3) working days of initial receipt. The acknowledgement will inform the Data Subject that their request has been forwarded to DWP. DWP will then respond on behalf of both DWP and the Scottish Government, in accordance with its business as usual arrangements.听

16.6. All other functions exercisable to comply with the current Data Protection Legislation, in relation to Personal Data being processed by DWP for Carer鈥檚听Allowance, will be exercised by DWP in accordance with its existing practices.听

17. Data Controller Arrangements听听

17.1. DWP and the Scottish Ministers will be Joint Controllers within the meaning of听Article 26 of the UK GDPR.鈥

17.2. It is agreed between the Parties that DWP will administer Carer鈥檚 Allowance听on the basis of business as usual arrangements as set out under Section 5听of this Agreement.听听

17.3. The processing of all Personal Data subject to this Agreement which is听necessary for administering Carer鈥檚 Allowance by DWP, will be under DWP鈥檚听existing data policies. DWP鈥檚 Personal Information Charter can be found via听the DWP Personal Information Charter, and it contains more听information about how DWP handles/processes Personal Data.听听

17.4. For the avoidance of doubt, Scottish Ministers鈥 responsibilities under Article听26(3) of the UK GDPR, will be fulfilled by referring the matter to DWP, which will respond to the Data Subject in accordance with its existing practices.听听

17.5. DWP in their capacity as a Joint Data Controller, as per this Agreement, will听take all reasonable steps to ensure that all personal data is up to date and听accurate. This will be done in accordance with DWP鈥檚 business as usual听arrangements as detailed in Section 5 of this agreement.听

17.6. Each Party will be responsible for ensuring that their organisation and the data processing they are responsible for is fully compliant with all current data听protection legislation.听

18. Signatories听

Print name:听 BARBARA BENNETT听

Date: 13/03/2025听

A duly authorised officer for and on behalf of the Secretary of State for Work and Pensions听

Signed by:听听

Print name: STEPHANIE DEVENNY听

Date: 13/03/2025听

A duly authorised officer for and on behalf of Scottish Ministers听听

Signed by: