Bags It is a glorious warm, dry day here today as it was yesterday.
Ana The Scottish and Welsh Parliaments receive a block grant from Westminster calculated (according to the Barnett Formula) to cover the responsibilities which have been devolved and that includes the areas you mention - Health, Education, Social Services. If there is a rise or cut to, say, the NHS budget for England and Wales then the same percentage will be added or taken from the Scottish Block Grant. Currently, the BG has been cut severely, in line with UK wide cuts in response to the financial crises. The Scottish Finance Minister must prepare a Budget which is under the expected total of the BG. The Scottish Government has no other revenue, is not allowed to borrow, or overspend and any surplus at year end is clawed back by the UK Exchequer. It is quite a task!
Our Government decided to abolish prescription charges, partly because it was 'the right thing to do' but also because the costs associated with administering the charges were enormous and the vast majority of prescriptions were free anyway. Overall it has cost little and enabled the working poor (and those on Job Seekers) to collect their prescriptions, without having to save up for them. Similarily there is an enormous saving in administrative and means testing costs associated with free personal care. Many older people were already eligble but had to battle their way through bureaucracy and budget protection battles between Health and Social Services. This has not meant that the RICH are now getting free personal care - they could access it if they wanted but in general people who can afford to pay prefer to go private.
Yes, these 'free' services do cost more, but not as much as you would think. The Finance Minister has to find the money within his budget and so we do not have, for instance, SureStart Centres, but the bulk of his savings have come from reducing bureaucracy, amalgamating Quangos, departments and the latest 'biggie' combining the Regional Police Forces into one Nation-wide Force.
HTH 