Scotland Defends Expanding Benefits System as Concerns Grow Over £1.2bn Funding Gap

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Scotland’s newly appointed Deputy First Minister and Finance Secretary Jenny Gilruth has strongly defended the country’s growing welfare system, insisting the Scottish government is “not spending too much on benefits” despite mounting concerns over its long-term financial sustainability. Speaking after her promotion in John Swinney’s cabinet reshuffle, Gilruth said SNP ministers would “make no apology” for maintaining a more generous social security model than the rest of the UK.

The Scottish government has increasingly used devolved powers to expand welfare support, particularly through disability and low-income payments that differ from policies implemented in England and Wales. Gilruth contrasted Scotland’s approach with what she described as the “callous” handling of welfare by successive UK governments, arguing that the Scottish model reflects different political priorities centred on social protection and poverty reduction.

However, the expansion of benefits has intensified warnings from economists and opposition parties about rising financial pressure on Scotland’s budget. More than half of Scotland’s social security spending is now directed toward the Adult Disability Payment, while forecasts from the Scottish Fiscal Commission suggest that by 2031, around one million Scots could be receiving some form of disability-related support. At the same time, the gap between what Scotland spends on welfare and what it receives from the Treasury is projected to rise to £1.2 billion by the end of the decade.

That growing shortfall is expected to force difficult political choices in the coming years, including possible tax increases, cuts to other public services, or expanded borrowing. Critics argue the current trajectory may become unsustainable without broader economic growth or additional funding powers, while SNP ministers maintain that protecting vulnerable people remains a central priority. The debate is now likely to become a defining issue for Swinney’s government as it balances progressive welfare ambitions against increasing fiscal constraints.