Welfare reform and devolution: issues of parity, discretion and divergence for the UK government and the devolved administrations

Abstract

The impact of devolution in the UK on social security is examined in the context of the major powers in the area continuing to be exercised by the Westminster government. Developments and principles involved are described in three perspectives and phases. First, the established model of parity with minor adjustments. Second, parity with enhanced discretion associated with the introduction of welfare reforms. Third, the prospect of the future transformation of the parity principle with increased focus on greater fiscal responsibility and greater devolution and divergence in social security, and with the additional context of the referendum on independence for Scotland. Also discussed are the implications of either a ‘yes’ or ‘no’ vote in the Scottish referendum.