A major shake-up of the Department for Work and Pensions (DWP) has resulted in a Scottish family on a low income receiving £15,000 a year more than an identical household across the border in England. The devolution of benefits to Social Security Scotland has led to what experts describe as 'welfare nationalism', creating striking differences in entitlements across the UK.
Regional Disparities in Benefit Payments
According to a new study by the Safety Nets project, an unemployed couple with four children in York would receive £22,000 a year in benefit income. In contrast, the same family in Belfast would get £32,000, while a similar household in Glasgow would be entitled to £37,000 annually. The report highlights that a family on Universal Credit in Scotland qualifies for an additional £1,800 during the first year of a child's life compared to families in England or Wales.
Study authors stated: 'More and more, the social security support people can receive when affected by things like low income, illness, disability or caring responsibilities depends on where in the UK they live.'
Universal Credit Remains, But Differences Emerge
The report warns that Universal Credit remains the main low-income benefit for working-age households across the UK, with identical conditions and headline award rates regardless of location. However, significant differences have emerged in payment arrangements and passported entitlements. The most financially significant is the Scottish Child Payment, set at £27.15 per child per week in 2025-26. Combined with Best Start Grants and Best Start Foods, this means a low-income family with children in Scotland can receive considerably more in social security than an equivalent family elsewhere.
In some circumstances, a four-child family in Scotland may be entitled to as much as 68 per cent more in total social security support than a comparable family in parts of England, the report found.
Council Tax Reduction Variations
When it comes to council tax reduction (CTR), the report found that 70 per cent of English local authorities had reduced the maximum level of CTR below 100 per cent of Council Tax liability. The result is that a family receiving maximum CTR in one local authority might pay no Council Tax, while an equivalent family across a local boundary could face a bill of nearly £1,400.
The report added: 'We are all part of the UK, and it can feel unfair when people in one area benefit from extra support that we can't access ourselves.'
