Explainers

Scottish Welfare Fund

The Scottish Welfare Fund (SWF) replaced elements of the UK Government’s Social Fund that were devolved in 2013. It provides grants for people on low incomes through the provision of Community Care Grants and Crisis Grants. The Scottish Government provides funding to local authorities who then award the discretionary payments and deliver the fund in their local area. Our forecast only covers the funding provided by the Scottish Government. Local authorities can top up the funding provided by the Scottish Government.

The Scottish Government currently sets the annual budget for the SWF at £35.5 million (this figures excludes administrative funding) and has not informed us of any further plans to change the level of funding beyond 2025-26. An additional £17.5 million has been added to the budget for 2024-25 as part of a package of energy costs support announced in November 2024. We do not assess the demand for the Scottish Welfare Fund or whether the funding from the Scottish Government is reasonable.