Published on:
03
December 2012
Lord David Freud, Minister for Welfare Reform at Westminster, came to Scotland last week to talk with representatives of Scottish local government about the Westminster Government's proposals for the introduction of Universal Credit and sweeping changes to the current benefit arrangements.
Archie Drummond, Convenor of the Resource and Audit Committee represented Clackmannanshire Council at a meeting with the Minister in Edinburgh on Thursday.
After the meeting he said: "I welcome the fact that David Freud came north to talk about his proposals but I am not convinced he was taking in very much of what he heard. The Minister stated that the main aim of his reform proposals is to get people off welfare benefits and into work. However, when asked where the work was coming from in the context of rising, record unemployment, he had no answer. He even suggested that the only reason that we are not seeing major investment in the economy is because there are too many people who are unfit for work.
"I did suggest to the Minister that he is living in some parallel universe that people in Clackmannanshire don't recognise. He doesn't appear to understand the impact of his cuts on communities like ours. The millions of pounds that will be stripped from the local economy won't just hit those directly affected but will hit shops and businesses that are already struggling.
"He seems uninterested in the additional burden that his cuts will create, putting additional pressure on the Council services that support the vulnerable in our community or the likely increase in homelessness, or the social and financial impact of his bedroom tax.
"It is regrettable but rather obvious that Westminster is hell bent on their cuts and that they are not listening to anyone or any evidence that shows they have got it wrong."
Last month the Resource and Audit Committee heard about the impact that Welfare Reform will have on Clackmannanshire.
The committee heard of the changes to the criteria under which benefits will be paid and the reduction in payments for "under-occupancy" of premises and reductions for those of working age.
Localised council tax support will replace council tax benefit, and working tax credits will be reduced. Child benefit ceases for those earning over £60,000.
The number of benefits claimants in Clackmannanshire is currently 5,266 on Housing benefit and 5,791 on Council Tax benefit.
Council Leader Gary Womersley added: "The impact of Welfare Reform is likely to strip over £18 million from the Clackmannanshire economy by 2015/16.
"It is absolutely vital that the Council does everything it can to mitigate the effects where possible and we are currently working with our partners to ensure that we are as prepared as possible for the impact of what is effectively the dismantling of the Welfare State."
A Welfare Reform Working Group is actively working across the Council and with partners to mitigate the effects where possible. Those benefit recipients who will be affected by the changes in April 2013 will be contacted very shortly by the Council.