Benefit Cap: 'a clear incentive to work'?

The benefit cap is providing a clear incentive to work, according to new research released by the Department for Work and Pensions today. However opponents say welfare reforms have damaged society and have not produced savings promised by the government.

The Westminster government says it has long suspected that the benefit cap was having a positive impact on people’s lives, compelling them to find work, and that the publications ‘now show this is undoubtedly the case’.

The benefit cap was introduced as part of the government’s long-term economic planso that people on out-of-work benefits do not receive more than the average working family earns.

The research shows that:

those who would be impacted by the cap are 41% more likely to go into work than a similar group who fall just below the cap’s level, but this trend didn’t exist before the cap was in place – indeed those with higher weekly benefit used to be less likely to move into work
before the benefit cap fewer than 300 of the highest claiming families got over £9 million in benefits every year – the cap is preventing this and saving millions of pounds a year
38% of those capped said they were doing more to find work, a third were submitting more applications and 1 in 5 went to more interviews
where households said they intended to seek work because of the cap in February 2014 (45%) by August the vast majority of them (85%) had done so – 2 in 5 (40%) of those who said they had looked for work because of the cap in February actually entered employment by August.

Work and Pensions Secretary Iain Duncan Smith said: “We know that the benefit cap has had a real impact in changing attitudes and behaviours, and now we have evidence showing that our welfare reforms are encouraging people into work.

“By putting an end to runaway benefit claims and introducing a system which guarantees you will always be better off in work, we are incentivising people find employment. Every month hundreds of people who have been affected by the cap are making the positive move into work – gaining the financial security and esteem that comes with a job and a pay packet.

“As part of our long-term economic plan, we’ll continue to support people to break free from welfare dependency so they can look forward to a better, more secure future for themselves and their families”.

The DWP cites London as a good example of the policy working.

‘In London where the highest number of people are subject to the benefit cap, scare stories claimed that people would be pushed out of the capital. In actuality, of those capped households living in inner London that moved, 84% continued to live in the central boroughs. In London there is also larger likelihood of capped households moving into work with those in scope for the cap being 70% more likely to go into work than their equivalents just below the cap’.

One interviewee in the research said: “It gave me the shock of my life. But it’s given me the kick I need. I can see what the gentleman was saying, why should we pay for your lifestyle. We should want to work. We shouldn’t sit on our backsides watching Jeremy Kyle. I genuinely do want to work.”

While the government may believe it is on the right track, it’s fair to say that not everyone is convinced that the controversial cap is working, however. Trades Unions, disability rights organisations, charities, anti-poverty campaign groups, churches and opposition political parties all continue to condemn the government’s ‘draconian’ welfare reforms. They point to record numbers of families using food banks as evidence that the welfare reforms are hurting poor families – both in work and on benefits.

There’s also doubt about how much – or how little – money is being saved by the welfare reforms. Today, the Institute for Fiscal Studies said savings from the cap were ‘small’. They say the cap affects about 27,000 families in the UK – less than 1% of working-age families who receive housing benefits – and saved around £100m a year.

More about the benefit cap

Introduced in April 2013 the benefit cap is set at a rate of no more than £500 a week for couples and families and £350 for single people – £500 a week is equivalent to a salary of £34,000 a year after tax.

Over 50,000 households have had their benefits capped since April 2013 and since then 23,900 are no longer impacted – 12,000 because they have found work or are no longer claiming Housing benefit at all.

Lazarowicz backs ‘bedroom tax’ amendment

Mark Lazarowicz MP has joined Labour colleagues in giving a partial welcome to a Private Members’ Bill being debated today in the UK Parliament designed to exempt some people from the so-called ‘bedroom tax’.

The Housing Reform Act 2012 included the removal of the spare room subsidy, which means that social tenants can see their housing benefit cut severely where they are deemed to be occupying a property larger than they need.

The Bill is being introduced by Andrew George, LibDem MP for St Ives, and although committed to abolition of the bedroom tax the Labour Opposition is aiming to strengthen it as a step towards that.

The North and Leith MP said: “The Bill is welcome in so far as it goes in seeking to exempt some people hit by the bedroom tax and in encouraging the building of new affordable housing but the real answer is simple: scrap the bedroom tax as Labour is committed to do.

“This unfair and vicious policy has left vulnerable tenants like disabled people and their carers under threat of having to move and the Government has been forced to apply sticking plaster to the wound it has caused by increasing discretionary housing payments in dribs and drabs.

“It is all very well for some LibDem MPs to be calling for the bedroom tax to be modified to exempt them a few months before the UK General Election – if they had opposed it from the start, the government would not have been able to bring it in at all!

“The real answer to the desperate shortage of affordable housing is not to victimise existing social tenants but to tackle it at root by building more of it.”

Call for ‘living wage’ if Scotland says ‘YES’

An expert group on welfare set up by the Scottish government has recommended a substantial rise in the minimum wage. It said the rate received by the lowest paid should go up by more than £1 per hour if Scotland votes for independence.

The recommendation from the Scottish government’s advisory group was that the minimum wage should match the ‘living wage’ within five years of independence – a rise from £6.31 to £7.65 per hour.

Responding to the latest report, Deputy First Minister Nicola Sturgeon said support to get people into work, action to make work pay and the provision of a strong and decent safety net for those who are unable to work should be the focus of the welfare system in an independent Scotland.

The independent Expert Working Group on Welfare’s second report outlines a vision for a fairer, simpler and more personal welfare system and provides nearly 40 recommendations for change following independence.

The Deputy First Minister confirmed that in an independent Scotland the current government would take forward recommendations, including those to improve support for carers, restore the link between benefits, tax credits and the cost of living and abolish the current Work Capability Assessment.

She also confirmed that the Scottish Government would carefully consider the Group’s recommendations on the minimum and living wage, introduction of a new Social Security Allowance and replacement of the Work Programme with more targeted support to help people find and sustain employment.

Ms Sturgeon said: “I warmly welcome the independent Expert Working Group’s report and thank the members for their significant contribution. The Group’s report includes a wide ranging package of recommendations which would help us create a welfare system in an independent Scotland that better meets our needs.

“As part of their discussions, the Group have engaged with a wide range of people and organisations. It is clear they have listened closely not only to how people feel about welfare, but also how the current reforms are affecting their lives.

“In particular, I strongly endorse the Group’s view that the welfare system should act as a strong safety net and a springboard to a better life. They are right when they say that work should be the best route out of poverty for most people but that the rise in in-work poverty needs to be addressed if this is to be the reality.

“Following a vote for independence, we would be committed to taking on several recommendations straight away to deal with those aspects of the current system that are pushing so many people into poverty.”

The Government would:

• Increase Carers’ Allowance to £72.40 per week, the same rate as Jobseeker’s Allowance for those aged 25 or over. This would amount to an extra £575 a year for the 102,000 people in Scotland who are eligible to claim the allowance.

• Re-establish the link between benefits and the cost of living, with benefits and tax credits being increased each year by the Consumer Prices Index of inflation.

• Abolish the ‘Bedroom Tax’.

• Replace the current system of sanctions with one that is fairer, more personalised and positive.

• Abolish the current Work Capability Assessment that determines the ability to work of the sick and disabled.

• Establish a National Convention on Social Security at the start of 2015.

The Government will also carefully consider the Group’s other recommendations. These include:

• Increasing the National Minimum Wage to equal the Living Wage and with reductions in Employers’ National Insurance contributions to help businesses make this transition.

• Replacement of the Work Programme with new initiatives developed in partnership with those out of work to help them find, and stay in, employment.

• Introducing a new Social Security Allowance that would bring together existing benefits but which would exclude Housing Benefit.

• Better supporting those with long-term disabilities and illness into work.

The Deputy First Minister added: “We are committed to mitigating the harmful effects of Westminster’s welfare reforms where we can, such as securing the transfer of powers over discretionary housing payments to the Scottish Government, allowing us to help people struggling with the Bedroom Tax.

“The report recognises the increased pressures of in work poverty and some of the difficulties in the current labour market. These are challenges all countries face but we are committed to tackling them head on wherever possible. The growing numbers of people in work but still facing poverty is extremely worrying. They need our support and one way to do this, as the Group suggests, would be through making the Living Wage the National Minimum Wage. We will be looking closely at this proposal.

“We will be considering the Group’s recommendations to replace the Work Programme with more innovative, locally-based schemes, designed to help people find jobs and, importantly, stay in work.

“We will also look at the introduction of a new Social Security Allowance, but would keep Housing Benefit separate from this.

“Our focus will be on prevention rather than dealing with existing symptoms, to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have the powers to deliver progressive reform of the Welfare State – only with independence will we have the opportunity to create a welfare system that is fairer and works for all the people of Scotland.”

However Scottish Lib Dem leader Willie Rennie said people who expected big changes to welfare after independence would be “disappointed” by the report, while Labour maintains that being part of the bigger UK economy offers greater financial security. Scottish Labour’s Jackie Baillie said: “Once again we have uncosted promises from the SNP. You can’t have more generous welfare at the same time as you are cutting taxes – it simply doesn’t add up”.

Welfare cuts: the worst is yet to come?

Reforms to the welfare system could see Scottish welfare spending reduced by around £6 billion over the six years to 2015-16, according to new analysis published today.

The reforms will see a reduction in support for families, children and those with disabilities.

The majority of the total reduction in welfare expenditure in Scotland, nearly 70 per cent, is expected to be in 2014-15 and 2015-16, with the largest reductions in expenditure brought about by changes to how benefits are uprated, tax credits and child benefit.

Deputy First Minister Nicola Sturgeon said:

“We are committed to mitigating against the harmful effects of Westminster welfare reforms where we can – but the majority of the cuts are still to come.

“These changes to the budget will not only impact on the most vulnerable in our society, they will also set our progress on tackling poverty back by at least ten years.

“Child Poverty Action Group has suggested that, after housing costs have been taken into account, 100,000 more children in Scotland will be pushed into poverty by 2020 because of these reforms.

“And according to the Trussell Trust, the number of people using food banks is increasing with 56,000 people needing help between April 2013 and February 2014.

“We want to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have possession of the powers to deliver it. Only then can we finally stop these reforms from harming people who need our help.”

Speaking yesterday, Work and Pensions secretary Iain Duncan Smith defended changes to the welfare system, saying they would save the taxpayer £50 billion by the end of this Parliament.

Mr Duncan Smith said: “I think the work programme is now for the first time ever working with people, who were once on sickness benefits and who are now not, going back to work.”

‘Moral case’ for welfare reforms is a sham, says Minister

The UK Government’s “moral case” for welfare reform is harming the living standards of poor and vulnerable people in Scotland, Welfare Minister Margaret Burgess said yesterday. Trussell Trust figures show that over 50,000 people in Scotland received assistance from their foodbanks in the last ten months.

Mrs Burgess highlighted her concerns to MSP’s during a welfare reform debate in the Scottish Parliament, where she said that the current reforms are creating deep concern and anxiety and is leaving already vulnerable people at risk of extreme poverty and exclusion.

The Scottish Government estimates that the reduction in welfare expenditure in Scotland could reach as much as £4.5 billion by 2015.

Margaret Burgess said: “The reforms are unfair and unjust and impact on some of the most vulnerable members of our society. Yet, even with all of that, the UK Government talks about the ‘moral case’ for welfare reform. It is a sham.

“What is evident is that more and more people are struggling to cope and being flung into a downward spiral of misery. Where is the morality in that? It is shameful that in the 21st century, there are people in Scotland who are in desperate straits because of the UK’s relentless and unfair policies. Rather than help, the UK Government’s plans are punishing the most vulnerable in our society.

“In the meantime, the Scottish Government is taking direct action and delivering real support to help people deal with the cuts and changes to welfare provision. That includes investing at least £258 million over the period from 2013-14 to 2015-16 to mitigate the worst impacts of these reforms.

“But these are resources that have been taken away from other areas, money that could have been used for other priorities. For example we could have used this money to invest more in health and education for our people – and in growing Scotland’s economy. With independence, we can take decisions about welfare that will ensure fair and decent support for people in Scotland.”

Ewan Gurr, Scotland Development Officer for the Trussell Trust said: “While The Trussell Trust celebrates the ways in which communities pull together in lean times to respond to emerging need, we do not celebrate the fact the need exists in the first place.

“Foodbanks are a grass-roots response to a systemic problem and are often a lifesaver to many individuals and families who feel they have nowhere else to turn. We applaud the consistent efforts of the Scottish Government to mitigate the effects of food poverty and to raise the profile of this issue in an effort to identify creative solutions.”

However The Department for Work and Pensions said the government’s welfare reforms will make three million households across the UK better off, and refutes claims that welfare reforms have caused increased dependency on food banks. A spokesperson for DWP said: “The benefits system supports millions of people who are on low incomes or unemployed and there is no robust evidence that welfare reforms are linked to the increased use of food banks.”

Last month Prime Minister David Cameron told the Daily Telegraph that the government’s economic plan for Britain was ‘about doing what is right’. He wrote: ‘For me, the moral case for welfare reform is every bit as important as making the numbers add up.’

Demo at Leith job Centre today

DEMO DENOUNCES “SANCTIONS TARGETS” AT LEITH JOB CENTRE

Claimants and anti cuts campaigners are set to demonstrate at Leith Job Centre today (Thursday 11th July) in a protest against “sanctions targets” set by a Job Centre manager.

“A new manager at Leith Jobcentre has told staff that 30% of claimants are not meeting the conditions for receiving benefits – the clear implication is that these claimants should be anctioned, that is have their benefits stopped. In reality this is a return to the supposedly outlawed practice of setting sanctions targets, and is totally unfair and unjust,” said Ethel MacDonald of Edinburgh Coalition Against Poverty.

The demonstration is part of the Boycott Workfare Week of Action against the government’s controversial “work-for-your-benefits” schemes and is in opposition to the whole government austerity programme.

“People are really suffering because of sanctions. Right now we are opposing sanctions imposed on a disabled claimant who is having to live on £26.05p per week because he was too ill to go to an
appointment with the Ingeus workfare provider. What’s more, most claimants who are sanctioned have their money stopped completely, for from one month to three years.”

The protestors state that they will challenge sanctions, and issue a call to direct action. “You have the right to challenge sanctions. Ask for the decision to be reviewed and appeal against it. If need be, we can alert our Edinburgh Coalition Against Poverty solidarity network to have a peaceful demo INSIDE the Job Centre.”

The demonstrators point to a government press release stating that they have set up “hit squads” in all Job Centres to presurise claimants returning from workfare providers. “The government have
openly declared war on the unemployed”, say ECAP. “We know that in Leith Job Centre they have set up such a “hit squad” and some officials are misinforming claimants that they have to allow the DWP to monitor their online job search. This is a lie and we urge claimants to stand up for their right to protect their privacy.”

Edinburgh Coalition Against Poverty have also been leafleting the Leith Job Centre workers, appealing for workers to join claimants in opposing cuts, sanctions and workfare. “Some Job Centre workers are themselves facing unemployment, as now they only get temporary contracts, and could easily find themselves on the other side of the counter,” explained ECAP’s Ethel MacDonald.

“If we are not to be condemned to years of austerity we need to take a stand,” she went on. “Enough is enough! Why should the vast majority suffer because of the greed of a minority of speculators, bankers and super-rich, and the chaotic nature of their profit-driven system? It’s time for action to assert that people’s needs must be the priority, not money. We can’t rely on any of the political parties, we must organise at the grass-roots, through people power.”

The protest takes place from 10am till 12 noon today at the Commercial Street Job Centre, Leith.

Edinburgh Coalition Against Poverty (ECAP)

Wake up call: one family in five struggle to feed their children

One in five UK families can’t afford to feed their children, according to new research published jointly by Fareshare, the Trussell Trust and Tescos.

The research highlights the biggest ever increase in UK foodbank use and a 170% rise in numbers turning to foodbanks in the last twelve months. The Tressell Trust found that 100,000 more people than anticpated were given emergency food, and the charity says this must be a ‘wake-up call to the nation’.

Trussell Trust foodbanks have seen the biggest rise in numbers given emergency food since the charity began in 2000. Almost 350,000 people have received at least three days emergency food from Trussell Trust foodbanks during the last 12 months, nearly 100,000 more than anticipated and close to triple the number helped in 2011-12.

Rising cost of living, static incomes, changes to benefits, underemployment and unemployment have meant increasing numbers of people in the UK have hit a crisis that forces them to go hungry. This dramatic rise in foodbank usage predates April’s welfare reforms, which could see numbers increase further in 2013-14.

346,992 people received a minimum of three days emergency food from Trussell Trust foodbanks in 2012-13, compared to 128,697 in 2011-12 and up from 26,000 in 2008-09. Of those helped in 2012-13, 126,889 (36.6 percent) were children.

The Trussell Trust has seen a 76% increase in the number of foodbanks launched since April 2012 but has seen a 170% increase in numbers of people given emergency food. Well- established foodbanks that have been running for several years are showing significant rises in numbers helped during the last 12 months. Christian charity The Trussell Trust is launching three new foodbanks every week to help meet demand and has launched 345 UK foodbanks in partnership with churches and communities to date.

Trussell Trust Executive Chairman Chris Mould said: ‘The sheer volume of people who are turning to foodbanks because they can’t afford food is a wake-up call to the nation that we cannot ignore the hunger on our doorstep. Politicians across the political spectrum urgently need to recognise the real extent of UK food poverty and create fresh policies that better address its underlying causes. This is more important than ever as the impact of the biggest reforms to the welfare state since it began start to take effect. Since April 1st we have already seen increasing numbers of people in crisis being sent to foodbanks with nowhere else to go.’

He continued: ‘Last year The Trussell Trust estimated that our foodbanks would help 250,000 people in 2012-13, we’ve helped 100,000 more than that. 2012-13 was much tougher for people than many anticipated. Incomes are being squeezed to breaking point. We’re seeing people from all kinds of backgrounds turning to foodbanks: working people coming in on their lunch- breaks, mums who are going hungry to feed their children, people whose benefits have been delayed and people who are struggling to find enough work. It’s shocking that people are going hungry in 21st century Britain.’

Only four per cent of people turned to foodbanks due to homelessness; 30% were referred due to benefit delay; 18% low income and 15% benefit changes (up from 11% in 2011-12). Other reasons included domestic violence, sickness, refused crisis loans, debt and unemployment. The majority of people turning to foodbanks were working age families.

Over 15,000 frontline care professionals such as doctors, social workers, schools liaison officers and Jobcentre Plus referred their clients to foodbanks in 2012-13. Foodbanks are community driven with an estimated 30,000 volunteers giving their time across the UK. Over 3,400 tonnes of food was donated by the public in 2012-13.

Chris Mould added: ‘Whilst it’s deeply concerning that so many people are facing hunger in the UK, the evident willingness of the public to help their neighbours through foodbanks has prevented thousands of crises escalating into disaster. We regularly hear people say that ‘the foodbank saved my life’ and it’s local communities that make that possible.’

Responding to these statistics, Citizens Advice Scotland’s Chief Executive Margaret Lynch said: “Sadly these figures won’t come as a surprise to anyone who has worked in a Scottish CAB. Right across the country, our advisers are having to deal every day with people who are struggling to make ends meet, and increasing numbers whose situation is so bad that they and their families are living in real poverty.

“In just the last three months Scottish CAB advisers saw nearly 300 people whose situation was so bad that they had to be referred to a food-bank or other form of emergency support. That means they literally could not afford to feed themselves that day, nevermind pay the rent or heating bills. It is no longer unusual for a CAB to deal with such a case.

“It’s very important to understand that the recession is not the only reason for this. The UK government’s welfare reforms have also had a devastating impact on many people throughout Scotland – and those who have suffered most are those who were on the lowest incomes to begin with. These include sick and disabled people as well as families with young children.

“Such people were hit hard by the recession, and many of them have then seen their benefits cut as well. Figures like those published today are the inevitable result. Many people in our society are now living in poverty, and are finding they can’t rely on the welfare safety net that is supposed to support them.”

Rise in rent arrears as ‘bedroom tax’ bites

The UK Government’s “disastrous” welfare reform programme has led to a rise in rent arrears and a rise in emergency housing payments across local authorities, Deputy First Minister Nicola Sturgeon said yesterday. Data collected by the Scottish Government and COSLA shows that UK Government changes to housing benefit have added significant financial pressures on Scottish councils.

The research showed that all, but one, of Scotland’s local authorities with housing stock, had seen an increase in rent arrears. Three quarters of councils said that the bedroom tax is directly responsible for the increase in arrears.

Of that rent now due to be collected from tenants affected, 60 per cent of councils reported receiving 40 per cent or less and 80 per cent of councils reported receiving 50 per cent or less (based on responses from 20 of the 26 councils with their own housing stock).

Ms Sturgeon said that it was ‘absolutely imperative’ that the DWP review and evaluate the impact of their welfare reforms as a matter of urgency.

Last month, research showed that local authorities had received 22,000 requests for emergency Discretionary Housing payments by the end of May. Nineteen local authorities saw a 400 per cent rise compared to the same period last year. And by the end of May, 22 per cent of the £10 million funds made available in Scotland for DHPs by the Department for Work and Pensions had been allocated.

Ms Sturgeon said: “This new data shows a drastic increase in the number of people applying for emergency funding to help them deal with the impact of the UK disastrous welfare reform programme. Local authorities across Scotland are having to deal with the appalling aftermath of the bedroom tax, which is hitting our most vulnerable citizens, including a high proportion of disabled people, extremely hard in these challenging economic times.

“The Scottish Government and COSLA have had little indication from the UK Government about how they intend to review the impact of the bedroom tax to date – even though it is clear from this research that it is driving up rent arrears and requests for emergency funds. That is why we have made a commitment to the people of Scotland that we will scrap the bedroom tax following a successful referendum vote next year. This will be done within a year of independence and we will have the practical arrangements in place to ensure that this happens.

“Working with our partners in local government we have provided £40 million to protect households from the 10 per cent cut in successor arrangements to Council Tax Benefit. We have also allocated funding to support people affected by the bedroom tax with an additional £7.9 million for advice and support services, of which £2.5 million is ring fenced for social landlords.

“We cannot mitigate the full impacts of the UK Government’s cuts to the welfare system without full powers over welfare or access to all our resources – but we will continue to oppose the bedroom tax. It is unfair and divisive policy that hit some of our most vulnerable groups hardest, and it undermines and jeopardises the work this Government is taking forward to create a fairer, more successful, and prosperous Scotland.”

Edinburgh to act against impact of welfare reforms

Plans to mitigate the impact of national welfare reform measures on the capital have been announced by the City of Edinburgh Council. The plans, which will see an additional investment of £350,000 in advice and support services, will be discussed by the Corporate Policy and Strategy Committee on Tuesday (16 April).

The introduction of policies such as the Housing Benefit Under-occupancy Restrictions (or ‘bedroom tax’), which are expected to affect 3,800 Council tenants, and around 2,500 Housing Association tenants, combined with national reductions in benefits will have a significant impact on some Edinburgh residents and the city’s economy as a whole.

The Council has taken steps to minimise these repercussions where possible and is considering further actions to offer support. Residents affected by the under-occupancy restrictions have been contacted to provide advice about options such as moving to a smaller home, taking in lodgers or budgeting on a lower income.

Health, Wellbeing and Housing Convener, Councillor Ricky Henderson, (pictured below)said: “The new changes to the national welfare system will have a significant impact on the city and particularly those receiving benefits. It is also expected that the introduction of the under-occupancy changes will lead to increasing rent arrears, which may have an adverse impact on the Council’s ability to deliver services and capital investment in its homes.

“We have taken steps to bolster Council and voluntary sector advice services to make sure that residents are aware of these changes and the help that is available to them. It is vital that we support our most vulnerable citizens and do what we can to minimise these repercussions where possible.”

The committee will be asked to approve an investment of £350,000 to provide additional advice services. Of this sum, £100,000 will be provided to Citizens Advice Edinburgh, £22,000 to the Community Ability Network, £15,000 to The Action Group, £15,000 to FAIR and £7,000 to COSS. Some of the extra funds will also be invested in the Council’s own Advice Shop service and Contact Centre.

An additional £67,000 has already been agreed for the Welfare Rights and Health Project, CHAI Advice Service and Granton Information Centre.

Recent Scottish Local Government Forum Against Poverty figures suggest that changes to the national welfare system will lead to a loss of income of £223 million by 2015/2016 for people in Edinburgh. These changes mainly affect individuals and families living on low wages, those seeking work and disabled people who are unable to work. This will result in a greater need for advice about benefits, debt and budgeting, as well as an increased demand on social work, housing and homelessness services.

The administration of Crisis Grants and Community Care Grants is now the responsibility of the Council, after being transferred from the Department for Work and Pensions on 1 April. Crisis Grants are available as emergency payments where there is an immediate threat to health or safety and are now paid out from Council Neighbourhood and City Centre Offices with an out of hours service also available. A new team has been recruited to deal with the assessment and processing of claims, which can be made by phone, online, on paper and in person. Community Care grants will help to enable or continue independent living by providing furniture, carpets and white goods.

Further measures will be discussed by the Health, Wellbeing and Housing Policy Development and Review Sub Committee on Tuesday 23 April 2013.

The city council’s announcement comes as new independent research by Sheffield Hallam University has shown that welfare cuts will take more than £1.6bn a year out of the Scottish economy and hit the poorest parts hardest – the equivalent to about £480 a year for every adult of working age. The biggest losses are from reforms to incapacity benefits at about £500m a year.

The report states: “The financial losses arising from the reforms will hit the most deprived parts of Scotland hardest. Glasgow in particular, but also a number of other older industrial areas, will feel the impact most. The loss of benefit income, which is often large, will have knock-on consequences for local spending and thus for local employment, which will in turn add a further twist to the downward spiral.”

The report added: “A key effect of welfare reform will therefore be to widen the gaps in prosperity between the best and worst local economies across Scotland.” Researchers note that the scale of financial loss in Scotland would have been greater if the Scottish government had chosen to pass on the cut to council tax benefit.

The report was commissioned by the Holyrood’s welfare reform committee, and while it’s findings are unlikely to come as a major surprise, committee convener Labour MSP Michael McMahon said: “Our committee wanted a detailed picture of what would happen on the ground when these reforms were fully implemented. It is obvious to all that the impact is dramatic – and more so in the areas that can least afford it.”

A Scottish government spokesman said: “Sheffield Hallam have used the same publicly available data as the Scottish government analysis and reach broadly the same conclusions on the scale of the cuts. It is completely unacceptable that hard-working people and vulnerable groups will bear the brunt of the UK government’s welfare cuts.”

The UK government insists that changes must be considered alongside other measures like the increase of the tax threshold, that changes to the welfare system were necessary and that reforms will benefit the Scottish economy in the long-term.