Benefit reforms paint 'bleak picture' for Scotland's most vulnerable

Job Centre: MSPs heard reforms would have 'major impact' on vulnerable people.© STV

Westminster benefit reforms paint "a bleak picture" for Scotland's most vulnerable people, MSPs have heard.

Holyrood's Welfare Reform Committee has approved the principles of a Scottish Government Bill designed to mitigate "the likely widespread impact" of benefit changes in the UK Welfare Reform Act.

The UK Government is reducing the Department of Work and Pensions budget spent in Scotland by £2.5bn.

The Act will also abolish a range of benefits such as council tax benefit, income support, jobseeker's allowance, child tax credit, working tax credit and housing benefit and replace it with a single universal credit.

The committee has heard weeks of testimony from charities, unions, housing agencies, advice groups and other stakeholders and found "universal support" for a Holyrood Bill to mitigate the predicted negative impact of the UK Bill.

Speaking at the launch of the committee's stage one report on the Welfare Reform (Further Provision)(Scotland) Bill, convener Michael McMahon said: "We heard from witnesses about the bleak picture for those on welfare and the scale of personal impact that is likely to follow the UK reforms.

"We have grave concerns for the future of Scotland's most vulnerable people. This comes at a time when the Scottish welfare budget is being cut by £2.5bn.

"Seeking to limit even some of the negative impacts of reforms is therefore no mean feat."

MSPs heard that the changes will "remove lifeline benefits from large numbers of vulnerable people", with "major impacts on the independence of disabled people, and on child poverty and homelessness levels".

They also heard that there is an increased likelihood of "individuals and families getting into serious debt, including rent arrears" due to the new arrangements for allocating income support and benefit.

The committee said the DWP "has done limited work to assess the impacts on different groups", making it impossible for MSPs to work out where to target support.

The committee is also concerned about the impact on so-called "passported benefits".

Currently those receiving the benefits can use them as a "passport" to further benefits such as free bus passes or leisure services, and it is unclear how these will be allocated in future when the existing benefits are abolished.

Deputy convener Jamie Hepburn said: "Stakeholders are unanimous that this Bill should be passed swiftly so that the secondary legislation stemming from it can be in place well before the start of the new welfare system in April 2013.

"This is to ensure that individuals and families continue to receive what can be lifeline benefits.

"That said, we all appreciate the necessary time constraints that the Scottish Government faces here. Understandably, within these parameters, stakeholders want the fullest involvement in the development of regulations and the opportunity for comment."

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