Councillors to challenge Welfare Reform

29th November 2012

Highland Councillors are united in their condemnation of the far-reaching nature of Welfare Reform changes proposed by the UK Government in a bid to find savings of £18 billion by 2014/15.

Councillor Alasdair Christie, Chairman of the Council’s Welfare Reform Working Group, led the criticism of the proposals, which he predicts will seriously affect the wellbeing of the most vulnerable members of the community.

Speaking at the Finance Housing and Resources Committee today (Wednesday) he reported that he has invited the three Highland MPs to meet with the Working Group on 25 January, next year, to highlight the growing concern of reform.

He said: “I have consistently raised my reservations, horrors and concerns at the reforms, which threaten to drown many people in debt. We must do all in our power to highlight our concerns at this damaging reform, which turns the clock back decades in terms of caring for our most vulnerable families and individuals.”

He criticised the absence of clarity over the nature and timing of change, which added to people’s anxieties.

From April 2013 the “bedroom tax” will be introduced, resulting in housing benefit being cut if a tenant’s council/housing association house is too big for their assessed needs and they are of working age. Community care grants and crisis loans will be replaced by grants from the Scottish Welfare Fund, Council Tax Benefit will be replaced by the new Council Tax Reduction Scheme and budgeting loans will start to be phased out. At this time, disability living allowance will be replaced by a new personal independence payment.

The biggest concern is over the introduction of the universal credit next October. Administered by the Department for Works and Pensions, this new credit will replace 6 of the existing working age benefits – income support; jobseekers allowance; employment support allowance; working tax credits; child tax credits and housing benefit – with a single monthly payment under the new regime being paid to one individual in each qualifying household.

Housing benefit, which helps some tenants pay their rent, is currently paid directly to the Council, as landlord, and goes straight into tenant’s rent account each week. Some Housing Association tenants also have their housing benefit paid direct to their landlord. However, from October, next year, housing benefit will become part of the new universal credit payment for all new claimants. People who receive this benefit will be paid monthly and will be expected to pay their rent to the Council, and other landlords in the social rented sector, out of the amount they receive. Rent payments will not be made directly to the landlords– other than in exceptional circumstances.