Cuts to Benefit Cap ‘to Cost Scottish Households £18m a Year’
November 16, 2016
Official government figures suggest that recently introduced cuts to benefit caps in the UK will cost households throughout Scotland a collective total of £18.2 million per year.
The cuts effectively mean that no household can take in any more than £20,000 in benefits on an annual basis, or no more than £23,000 if they live in London.
For some families the cuts will mean that their annual income falls from £26,000 to £20,000, with church leaders in Scotland having recently raised concerns that families with children are likely to be the worst affected by the changes.
“Eleven thousand Scottish families, almost all with children, face being affected by the new benefit cap,” said Reverend Dr Richard Frazer from the Church or Scotland’s Church and Society Council.
“We know, from our experience on the ground and the UK government’s own research that the benefit cap drives people into rent arrears, debt and hunger.”
Several Scottish politicians have also made clear their opposition to the UK government’s plans to introduce its latest cuts to benefit caps, including Labour MP Ian Murray, whose parliamentary enquiry led to the revelation that Scottish households stand to lose the equivalent of £350,000 per week as a result of the cuts.
“Cutting the benefit cap is immoral and unnecessary,” Murray is quoted as saying by the Herald.
“It will penalise families already struggling to make ends meet and hit families with children hardest.
“The government needs to get its priorities straight, starting with next week’s Autumn Statement, which it should use to put an end to austerity and reverse its needless and divisive cuts to social security.”
The cuts to caps on benefits relate to a broad range of payments currently being received by adults between 16 and 64 years old throughout the country including housing benefit, jobseeker’s allowance, income support and child tax credits.
Recipients of disability living allowances and households in which someone works more than 16 hours per week are excluded from the newly-lowered caps on benefit payments.
If you are finding it difficult to maintain control of your finances or your debt management situation then Scotland Debt Solutions can help. You can contact us directly to arrange a free consultation with one of our experts.
Citizens Advice has issued stern criticism of credit card companies for automatically increasing borrowing limits for customers who are already struggling with debt problems they can’t escape from. The charity’s own research has found that almost one in five people who are grappling with credit card debt problems have had their borrowing limits increased without […]
High factoring fees are placing an increasing financial strain on many property owners in Scotland, with some property factoring companies being criticised for huge price rises for what is often only essential basic maintenance and insurance. The purpose of a factor is to carry out ongoing maintenance, cleaning, and servicing of communal areas in property […]
Continuous payment authorities, or CPAs, are often used by payday loan providers as a way to take repayments via a debit card, or sometimes a credit card. A CPA effectively grants permission to take recurring payments, but it can be hard to revoke if you later experience financial difficulty and need to cancel the authority. […]
The car finance market is currently under investigation by regulators, as fears grow that it could become the next ‘debt bubble.’ The problem is that personal contract purchase (PCP) and hire purchase (HP) car financing agreements require little in the way of an initial deposit, and can be easily obtained by consumers posing a high […]
The latest figures on the use of food banks in Scotland show a disproportionately high need by Scottish residents in terms of population numbers, when compared with any other area of the UK. The Trussell Trust distributed 145,865 food parcels to Scottish residents in 2016/17 via their food banks, with almost 48,000 of those food […]
Because it’s highly addictive, gambling on even a small scale can turn into an addiction that takes over your life. The fact that it’s also easily accessible online now only serves to exacerbate this growing problem. So if you recognise that gambling has become an addiction, either for yourself, a friend, or a family member, […]