Figures within the party are now questioning how Ms Donald came to be selected in the first place, with a source telling The Herald she had initially failed the SNP’s vetting process before later being approved following an appeal.
The source said: “Some people will now be left wondering why Sally became a candidate in the first instance given that she failed vetting, and was only added to the approved candidate list after an appeal. All of this could have been avoided.”
Scottish Labour has also called on the SNP to state if they were aware of the probe into Ms Donald before she was selected as a candidate.
The investigation into her benefit claims was first reported by The Scotsman, which said the inquiry relates to concerns about Ms Donald’s eligibility for the benefit.
However, Ms Donald has said her decision to step down was because she did not want “recent reporting” to “distract” from campaigning in Edinburgh Southern.
In a statement, Ms Donald said: “I have always been, and will always be, committed to creating a better Scotland for everyone. However, I have regrettably come to the decision to no longer stand in the elections in May.
“While I strenuously deny any and all wrongdoing, I do not want recent reporting to distract any further from the excellent campaign being run in Edinburgh Southern.
“I would like to thank everyone in my campaign team, all the local members who have supported me, and my family and friends. I wish the team and the new candidate all the best for the 7th of May.”
Ms Donald has since taken all her videos down from her TikTok channel.
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In an infamous incident in 2022, Ms Donald posted a picture on social media of herself with Nicola Sturgeon’s battlebus and the words “All aboard the gravy bus”.
SNP candidate Sally Donald steps down amid Adult Disability Payment investigation (Image: Sally Donald)
Ms Donald, a political staffer who has worked for multiple SNP MPs, is believed to have been in receipt of ADP for several years.
She currently works for SNP Moray West, Nairn and Strathspey MP Graham Leadbitter and has previously spoken publicly about living with autism and severe anxiety.
SNP MSP Emma Roddick posted on social media that rhetoric around the story has been a “huge step” back for disabled people in parliament.
Ms Roddick said: “An anonymous complaint followed by rampant ableism across social media. Nothing to say that she’s actually done anything wrong.
“The rhetoric today has been a huge step back for disabled people in parliament and understanding of neurodivergence.”
ADP can be worth up to £10,000 a year tax-free and is designed to support people who need help with everyday tasks such as eating, washing, managing toilet needs or engaging socially with other people in person.
At her candidate adoption event in February for Edinburgh Southern, First Minister John Swinney attended as guest of honour.
Multiple sources had confirmed that scrutiny began after concerns were raised about ADP claims. The benefit was devolved from the Department for Work and Pensions to the Scottish Government’s Social Security Scotland agency in 2022.
In a statement, Ms Donald said: “In September last year, I met with Social Security Scotland who had received an anonymous complaint about my eligibility for the Adult Disability Payment. I provided the details they requested and have not heard anything since. I continue to receive ADP, based on their initial assessment of my eligibility for support.”
An SNP spokesperson said: “Sally Donald has informed local members of her decision to no longer stand as a candidate.”
Scottish Conservative social security spokesperson Alexander Stewart said: “Sally Donald’s position as a candidate was clearly untenable and it’s right that she’s stepped down.
“But the case has highlighted a much wider and more important issue – that the SNP’s welfare system isn’t fit for purpose.
“Scots who are being forced to pay more in tax to fund the Nationalists’ ballooning benefits bill will be asking why someone who was vigorously campaigning to become an MSP is reportedly receiving benefits due to having anxiety.
“The Scottish Conservatives are clear – those who have mental health conditions that are not serious should not be able to claim taxpayer-funded disability benefits. We have set out a plan that would stop such claims and end the culture that allows people to stay on benefits by ticking a box.
“It’s astonishing that none of the other parties – including Reform – will admit that there is a problem with the benefits system in Scotland.”
Scottish Labour’s deputy leader said questions remain unanswered as she called on the SNP to declare when they were first made aware of the benefit probe into Ms Donald.
Jackie Baillie MSP said: “Sally Donald has made the correct call to stand down as a Scottish Parliamentary candidate – however, serious questions still remain unanswered.
“Ms Donald was selected by the SNP as a candidate in March 2025, and yet we are still in the dark about what SNP bosses knew and when about the benefits fraud investigation, and the allegations made against her.
“It is imperative that taxpayers’ money is respected, and yet the SNP has a track record of showing absolutely scant regard for public cash. This includes by Ms Donald, who once described an SNP election battle-bus as a ‘gravy bus’.
“Shirley-Anne Somerville should explain when she became aware of the investigation into Ms Donald. Further, the SNP should set out why they felt it was appropriate to allow someone alleged to have defrauded Social Security Scotland to stand as a candidate.”