Welfare Cuts to cost West Dunbartonshire £36million

“West Dunbartonshire will be one of the worst hit areas when the present welfare reforms come into effect,” said Stuart McMillan MSP (SNP – West of Scotland).

This is made clear in the conclusion of research published commissioned by the Scottish Parliament’s Welfare Reform Committee.

The study, undertaken by the Centre for Regional Economic and Social Research at Sheffield Hallam University, has estimated that when fully implemented, the welfare reforms will take more than £1.6 billion a year out of the Scottish economy. This is equivalent to around £480 a year for every adult of working age in Scotland. In West Dunbartonshire, this rises to £600 a year.

The research also details the number of households affected by each part of the welfare system and its impact. It shows that although Child Benefit changes affect the largest number of households, the largest financial impact is on those in receipt of incapacity benefits and Disability Living Allowance.



Stuart McMillan MSP said:



“It is obvious to all that the impact of welfare reform is dramatic – and more so in the areas that can least afford it, such as West Dunbartonshire which will see £36million in benefit payments lost every year.



“Coping with disability is physically and emotionally difficult, even if the incapacity is short lived. It is also expensive and the research has highlighted that in Scotland, for the 144,000 working age adults adversely affected by incapacity benefit loss is on average £3,480 a year. I don’t see how this is supporting people in their time of need or helping people break out of the cycle of poverty.”

The research was undertaken by Professor Christina Beatty and Professor Steve Fothergill. It focussed on adults of working age as this is the group most affected by welfare reforms. It concludes that more than £1.6 billion a year will be taken out of the Scottish economy when the reforms come fully into effect. This is considerably higher than previous estimates as this research takes into account the impact of reforms on payments of incapacity benefits, Tax Credits and Child Benefit.

Stuart McMillan MSP added:

“These new figures have once again laid bare the scale of the human and economic damage of Westminster’s brutal welfare cuts.

“The Bedroom Tax has rightly attracted widespread condemnation and protest, but sadly its devastating impact on the vulnerable is only the tip of the iceberg. From cuts to incapacity benefit to tax credit changes and child benefit cuts, the most vulnerable are being made to pay the price for Westminster’s economic incompetence.

“It doesn’t have to be this way, and it shouldn’t be this way. Scotland has already made its opposition to these welfare cuts absolutely clear, and a majority of Scots believe that the Scottish Government would be best at deciding welfare policy for Scotland. The case for this is now becoming unanswerable.”


Notes

Key findings include:

Top-line figures

The biggest financial losses will arise from reforms to incapacity benefit (£500 million loss a year), Tax Credits (£300 million loss a year) and the 1% up-rating of most working age benefits (£290 million loss a year). This compares with £50 million for Housing Benefit reforms (‘bedroom tax’).

Impact on Scottish households

• 144,000 individuals in Scotland will be adversely affected by changes to incapacity benefits, with individuals on average losing £3,480 a year.

• 372,000 households in Scotland will be affected by changes to Tax Credits, with households on average losing £810 a year.

• 80,000 households in the social rented sector in Scotland will be affected by changes to Housing Benefit (‘bedroom tax’), with households on average losing £620 a year.

Impact on West Dunbartonshire

• It is estimated reforms will cost West Dunbartonshire around £36 million a year, equivalent to £600 a year for every adult of working age in the city.