Commentary on provisions of Act Section 26: Discretionary payments and assistance
Section 26 replaces the exception in Section F1 (social security schemes) in Part 2 of Schedule 5 to the Scotland Act 1998 relating to "Providing occasional financial or other assistance" with new Exception 7 and new Exception 8.
	Exception 7 provides the Scottish Parliament with legislative competence to introduce discretionary payments to help alleviate a short-term need for people whose well-being is at risk. This is similar to, but expands upon, the power that the Scottish Parliament currently has to make exceptional payments under certain circumstances and under which the Scottish Welfare Fund is delivered. Under the new power, there is no longer the requirement for the person’s need to be immediate or to have arisen out of an exceptional event or circumstances.
	The second limb of Exception 7 provides that where a person is in receipt of a reserved benefit that is subject to a reduction, suspension, or non-payability (for example as a result of a sanction because of non-compliance with a work-related requirement or the recovery of an overpayment or repayment of a compensation payment) a discretionary payment cannot be made to simply offset this reduction. However, a discretionary payment may be made if the need arises due to some other exceptional circumstance or event not related purely to the reduction in the benefit.
	As was previously the case, under Exception 8, the Scottish Parliament will be able to continue to make provision for occasional payments to help vulnerable people needing to establish or maintain a settled home.