What is devolution?

Some powers are devolved, which means the Scottish Parliament and Senedd Cymru (the Welsh Parliament) can make their own decisions. Other powers are reserved, meaning they remain with the UK Parliament.

Devolved powers include:

Health, education, housing, some aspects of transport, environment and some taxes and social security support. Scotland has more devolved powers than Wales. For example, Scotland has greater control over taxation and its justice and policing system is fully devolved. By contrast, Wales does not have devolved powers over justice and policing, which remain the responsibility of the UK Government.

Reserved powers include:

Defence, foreign affairs, immigration, and the constitution.

This split creates space for the devolved parliaments to act differently, if they choose, but it also means some issues remain decided at Westminster. For example, whilst both nations do have limited scope under devolution to promote themselves and their economic interests to the wider world, they do not have any direct powers when it comes to foreign affairs or control over immigration policy.

Crucially, the Scottish and Welsh Government do not raise all the money then spend, and therefore decisions taken at Westminster impact the size of their respective budgets.

The Scottish Parliament was established in 1999 and has extensive devolved powers. These include control over health, justice, education, housing, policing and policies related to the environment.

Scotland also manages some taxes, including partial control over Income Tax and full control over Council Tax. The Scottish Parliament’s powers related to social security have grown, resulting in the creation of the Scottish Child Payment and additional support for carers and disabled people in Scotland.

Decisions on public services, like the NHS in Scotland or school funding, are made in Edinburgh, not London. And while foreign policy remains reserved to Westminster, Scotland has also developed its own international development programme, supporting global efforts to tackle poverty, climate change and to help people facing crisis.

The Senedd Cymru/Welsh Parliament, first established as the National Assembly for Wales in 1999, now has powers over health and social care, education, housing, transport, the environment, local government, agriculture, planning, and the Welsh language and culture.

Wales also controls some taxes, including Land Transaction Tax, Landfill Disposals Tax, council tax and business rates. Since 2019, the Senedd has had the power to vary income tax, though rates remain aligned with England.

While justice and policing stay reserved to Westminster, many key decisions — from running the NHS to funding schools — are made in the Senedd.

Wales has also developed distinct approaches in areas such as social care, education and the environment. A Constitutional Commission in 2024 found that the devolution settlement should be strengthened to improve how government functions in Wales.

Elections for the next Scottish Parliament are held every five years, and from 2026, Senedd elections in Wales will be held every four years, with the next also in May 2026.  These elections will ultimately decide who will form the governments that shape key services and tackle urgent challenges in both nations.

In Scotland, 73 Members of the Scottish Parliament (MSPs) are elected to represent constituencies with a further 56 elected via a more proportional system to represent different regions.

Wales has adopted a fully proportional voting system for Senedd elections, replacing the previous mixed system that included first-past-the-post. From May 2026, 16 larger constituencies will each elect six Members using a candidate list system, with seats allocated in proportion to the votes each party receives. As a result, the size of the Senedd will increase from 60 to 96 Members.

Cost of living crisis

Families across the UK are struggling with rising prices. While not all powers to address this are devolved, the governments in Scotland and Wales have a range of tools to support households, including social security payments in Scotland, provision of funded childcare places, support for frontline third sector services, and initiatives promoting fair work in both devolved nations.

Child Poverty

Child poverty remains a major challenge: 31% of children in Wales and 22% of children in Scotland live in poverty. The Scottish Government’s Scottish Child Payment, has helped reduce poverty rates in Scotland compared to in the rest of the UK. In Wales, a new Child Poverty Strategy (2024) sets out a framework to tackle the issue, but progress is limited as social security and tax powers remain largely reserved to Westminster.

Health and social care

The NHS and social care services are devolved. Decisions in Edinburgh and Cardiff directly therefore affect waiting times, funding, and access to care.

Housing and homelessness

Devolved governments control housing policy. Affordable housing and tackling homelessness are major priorities.

Climate action

The governments in Scotland and Wales both set climate strategies, and Scotland has a legally binding target to be carbon neutral by 2045, five years earlier than the UK. Wales' legally binding target is to reach net zero greenhouse gas emissions by 2050. Key areas include decisions on transport, agriculture, just transition to green energy, and the level of investment to make homes more energy efficient and to switch to clean sources of energy.

Economic inequality

In both nations, systemic poverty has deep roots in the unjust transition from extractive industrialisation, such as the closure of coal mines in Wales, which left many communities without adequate investment or alternative employment opportunities. By using devolved powers to make the tax system fairer, and planning a just transition, more money could be invested in the services and support relied on by all of us, but particularly those on low incomes.

Oxfam works in Scotland and Wales as part of its mission to fight poverty and injustice, including by fighting inequality. Devolution matters because many of the policies that impact poverty and inequality are made in Holyrood and Cardiff Bay.

Through research, advocacy, coalition-building and media work, Oxfam Scotland and Oxfam Cymru are pushing for a range of actions to deliver economic justice, social justice, climate justice and global justice.

By understanding devolution — and using their voice to demand change — people in Scotland and Wales can help shape policies that build a fairer future for everyone.

At the same time, Oxfam continues to push for policy and spending action at Westminster, recognising the UK Parliament’s range of powers which continue to impact across the UK.