Welfare Benefit Cuts : Dundee to lose £58 million a year

Lesley Brennan

11 April 2013

The full financial force of the UK Government’s welfare benefit cuts upon Dundee has been  estimated to be £58 million a year.

This is the equivalent of a loss of £600 per year for every working age adult in the city.

The figures have been produced by researchers at Sheffield Hallam University.

They say that these figures “are substantially higher “ than those identified in the recent report by the Scottish Local Government Forum Against Poverty “principally because it takes fuller account of the impact of reforms on payments of incapacity benefits, Tax Credits and Child Benefit. “

The breakdown of the cuts in Dundee by individual benefits are :

Housing benefit :  3,900 households affected ( £4 million lost)  

Bedroom Tax  3,100 households affected (£2 million lost)

Non-dependent deductions  1,100 households affected (£1 million lost)

Household benefit cap 100 households affected ( £1 million lost)  

Disability Living Allowance 1,900 households affected ( £6 million lost)

Incapacity benefits 5,200 households affected (£18 million lost)

Child Benefit (three year freeze and withdrawal of benefit from household including a higher earner)    16,700 households affected (£6 million) 

Tax Credits 12,500 households (£10 million)

Uprating of benefits by just 1 per cent  (£10 million lost)

(The figures for Disability Living Allowance refer to 2017-18, and the figures for the uprating of benefits by just 1 per cent and incapacity benefits refer to 2015-16 )

These harsh measures will cause even more misery to many people who are already struggling.

There is an alternative to these harsh measures and that is to invest in the economy so that it grows much faster and creates jobs .

These cuts will take £58 million out of the Dundee economy

This will reduce people’s spending which in turn means more jobs are lost which in turn increases the money the government spends on benefits.

Putting the creation of jobs first will break out of this cycle

There are just 689 registered job vacancies in Dundee at the moment.

There are 8 Job Seekers Allowance recipients for every one of these vacant jobs.

The deficit has not been created by the people that these measures punish .

It has been created by the failure of government policy which must now be replaced by one that sees putting people back to work as a priority.

 

 

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