A £1.3bn cash “gap” has opened up in Scotland’s new devolved benefits system.
Experts revealed the massive difference between social security funding and the amount the Scottish Government plans to spend.
Fears also exist that key areas like councils will take the hit to make up any shortfall.
Labour MSP Daniel Johnson said: “This is yet another example of the SNP ’s complete failure to grow and support the Scottish economy.
“The SNP’s social security plans are unambitious and ill-thought-out. Scots deserve a world-class social security system but instead we are left with the SNP taking money from one underfunded service to run another.”
The Smith Commission, set up in the wake of the independence referendum, led to the devolution of some parts of the benefits system.
Under the new regime, the Scottish Government receives funding for devolved benefits from the UK Government, with any extra spending having to come from their own budget.
The means-tested Scottish Child Payment, which will rise to £25 a week, is bankrolled by the government in Edinburgh.
According to the Scottish Fiscal Commission, the gap will rise significantly between 2022 and 2027:
“Scottish Government spending above the funding received is forecast to increase from £0.5 to £1.3 billion.”
They added: “The widening difference between social security funding and spending because of reforms being made to social security has implications for spending on other portfolios.
“The increase in social security spending is balanced by reductions in other spending areas.”
In the Scottish Government’s spending review, health and social security were the big winners.
Other areas, such as local authorities and policing, are in line for a real terms cut.
A briefing by the Scottish Parliament Information Centre also noted that the SFC had pointed to an “increasing gap”.
They added: “By prioritising health and social security as it has, other parts of the Budget will be squeezed.”
Johnson added: “Due to the SNP’s failure to keep pace with the rest of the UK we are facing less money for the frontline public services on which we all rely.
“Frankly, Scotland cannot afford the price of the SNP’s lack of economic vision and inability to tackle the root causes of inequality in Scotland."
A Scottish Government spokesperson said: “The Resource Spending Review outlines how we will focus public finances to meet our priorities, including tackling child poverty. It is not a budget, and outlines high-level financial parameters with public bodies, local government and the third sector, so we can plan ahead together.
“We are proud to outline our plans to spend more than £23 billion in social security payments over the next four years. This is an investment in the people of Scotland – money that will go directly into their pockets, helping lift children out of poverty and mitigate the rising cost of living.
“Despite challenging forecasts around funding, we have protected the Local Government revenue budget in cash terms with an additional £100 million being added in 2026-27. Final decisions about the annual local government settlement will be taken through the annual Scottish Budget process, in consultation with COSLA.
“We have also maintained police funding over the Spending Review period, having already invested over £10 billion in policing since the creation of Police Scotland in 2013. And we will continue to invest over £1.3 billion in policing in each of the next four years.”
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