Poor to get poorer through welfare reform

Date: 11th April 2013
Category: Disability, Basic Health and Welfare

The most deprived areas in Scotland will take the biggest financial hit when the present welfare reforms come into effect.

This is the conclusion of research published recently 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 Glasgow, this rises to £650.

Whilst the Scottish average is broadly on par with the British average, this makes Glasgow second only to Birmingham within Britain in terms of financial loss. 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.