Employment services funding 'cut by £40 million a year'
The UK Government's spending review will cut funding for employment services due to be devolved to Scotland by around £40 million a year, according to the Scottish Government.
Fair Work Secretary Roseanna Cunningham said decisions made by Chancellor George Osborne last month would reduce anticipated funding for employability services by an estimated 75%.
Control over the Work Programme and Work Choice is due to be transferred to Scotland in 2017 as a result of the Smith Commission on further devolution.
A consultation was carried out over the summer on the potential for implementing distinctive new services but Ms Cunningham said the spending review would limit the Scottish Government's options.
She has written to UK Work and Pensions Secretary Iain Duncan Smith outlining serious concerns'' about the implications of the review for Scotland.
Ms Cunningham said: We estimate DWP intends to cut its spend on Scottish programmes to be devolved by around £40 million annually - around 75%.
This undermines the agreed intentions in Smith and comes on top of existing limitations in powers being devolved.
It is our view that the Smith Commission envisaged the Scottish Government having greater influence over these issues from April 2017 and this cut diminishes their recommendations to an unacceptable level.
The UK proposals will magnify the challenge of helping those further from the labour market into work.''
Ms Cunningham said she had requested an urgent meeting of the joint ministerial working group on welfare to discuss the issue.
She added: The clarity needed to procure services has also not been forthcoming from DWP with a number of information requests by the Scottish Government remaining unanswered after several months.
The lack of information on this vital issue is unacceptable and this latest move will have serious implications on both unemployed people in Scotland and the support they require.''