Welcome news as unemployment down in Scotland

Scotland’s jobless total fell by 13,000 to 206,000 between October and December, according to official figures published by the Office of national Statistics (ONS) today. The total number of employed in Scotland now stands at 2,461,000. ONS figures showed that the Scottish unemployment rate was 7.7%, marginally below the UK average of 7.8%. UK unemployment fell by a total of 14,000 to 2.5 million.

The number of people claiming Job Seeker’s Allowance in Scotland fell by 600 from December to 137,000 in January – down 5200 on the January 2012 figure. The ONS figures also showed that youth unemployment in Scotland fell by 28,000, or 5.9%, over the last year.

Scottish Secretary Michael Moore said: “The government continues to work hard to reduce unemployment by laying the foundations for a stronger, more balanced economy.”

Scotland’s headline employment rate (for those aged 16 to 64) rose by 0.1 percentage points over the three month period to 70.7 per cent, while the claimant count in Scotland fell by 600 over the month of January 2013 – the third consecutive monthly fall.

At Holyrood, government ministers particularly welcomed a significant fall in youth unemployment, which has fallen by has fallen by 28,000 over the last year. The youth unemployment rate fell by 5.9 percentage points – the largest annual fall since the series began in 2006, and the rate is at its lowest since November to January 2011.

Finance Secretary John Swinney said: “This is the third set of monthly unemployment figures in a row that have shown a fall. What’s more, the fall in youth unemployment is particularly encouraging. Scotland has lower youth unemployment, higher youth employment and lower youth inactivity than the UK. This month’s release sees the largest annual drop in the youth unemployment rate since the data series began in 2006.

“Unemployment fell by 14,000 across the UK as a whole with Scotland accounting for 13,000 of this net fall. But we must not be complacent – too many people are still looking for work, and the Scottish Government is taking action to address this by maintaining the most competitive business environment anywhere in the UK and investing in our infrastructure.

“The budget passed last month includes a tax relief package for business worth over £540m this year and bring forward a further £385 million package of economic stimulus. But with the full economic and fiscal powers of independence the Scottish Government could do even more to strengthen our economy and create jobs.”

Youth Employment Minister Angela Constance said: “Today’s figures are the clearest demonstration yet that the Scottish Government’s action on youth employment is helping to support more young people into jobs. It is fantastic that we have achieved an historic high in the number of school leavers going into work, education or training. A record 89.9 per cent of our young people are rightly securing opportunities after school. However – one young person not in training or employment is one too many. The biggest fall in youth unemployment since 2006 is something that the public, private and third sectors can be very pleased with, but our work must continue.”

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MP visits Prince’s Trust

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MP for Edinburgh East Sheila Gilmore visited The Prince’s Trust Centre on Ferry Road last Friday to meet young people and discuss the impact of youth unemployment.

The meeting provided an opportunity for the MP to meet a group of under-16’s participating on The Trust’s Fairbridge programme, which focuses on developing key employability skills, as well as participating in a round-table discussion with Prince’s Trust Job Ambassadors who provided an in-depth insight into the challenges they faced whilst unemployed.

The effect unemployment has on young people is significant, according to recent research by The Prince’s Trust. The Youth Index, which gauges young people’s wellbeing across a range of areas from family life to physical health, found that around 33% of those surveyed claimed to feel down or depressed ‘always’ or ‘often’, and that one in five unemployed young people across the UK believe their confidence would never recover from their spell out of work.

Ms Gilmore also got an insight into the range of programmes offered by The Prince’s Trust as a means of engaging with unemployed young people or those struggling at school and at a risk of exclusion.
Sheila Gilmore MP said: “We know that periods of unemployment at a young age can have an adverse impact on people for the rest of their lives. The work that The Prince’s Trust does with young people to help them build up their skills and confidence is crucial in preventing this.”

Speaking after the MP’s visit, Heather Gray, Director of The Prince’s Trust, Scotland, said: “We were delighted to welcome Sheila Gilmore to our Edinburgh Centre. It provided a positive opportunity for Ms Gilmore to meet with young people and hear about the challenges they face in finding employment as well as to discuss what can be done to help young people into employment and training and towards a positive future.”

Heather Johnston, a Job Ambassador for The Prince’s Trust Scotland, was one of the young people who met the MP. She said: “I was unemployed for five years – it is demoralising and can impact heavily on self-esteem. As a Job Ambassador for The Prince’s Trust, it is important we get as much support to ensure young people, like me, get an opportunity to achieve a positive future.”

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Government ‘caught red-handed’ over pension reforms

Hundreds of local women will lose out as a result of the latest pension reforms, according to North and Leith MP Mark Lazarowicz.

House of Commons Library research has revealed the true cost of last week’s pension reforms to 500 women in Edinburgh North and Leith and 2,900 women in Edinburgh as a whole who are set to lose out. Five hundred local women born in 1952 and 1953 will not be eligible for the single tier pension since they are due to retire in 2017, before the state pension reforms come into effect. Men born during the same period, however, will qualify.

The news comes after the Government claimed that “we have to be absolutely transparent [about who will lose]” yet it has failed to make clear the full consequences of the planned reforms.

The unravelling of this latest pension announcement is the second time this government has been caught trying to hide the full impact of its changes for pensioners following the Granny Tax, according to Mr Lazarowicz.

He added: “Ministers have been caught red-handed hiding the truth on pension reforms. This government’s pension changes have hit hardworking women in Edinburgh time and again and these reforms are no different. 500 women will be nearly £2,000 worse off compared to men, but instead of being honest with the women that will lose out this government tried to bury the truth. Once again Ministers have been caught with their hands in pensioners’ pockets – it’s about time this government had the decency to be honest about who will lose out under their plans.”

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The Bedroom Tax – a Poll Tax for the 21st century?

DSCN0647It could become the most hated piece of legislation to be inflicted on British people since the infamous Poll Tax. And it’s now only weeks away … 

In April, a new measure is to be introduced that will apply to all tenants of working age – welfare reforms will cut the amount of benefit that people can get if they are deemed to have a spare bedroom in their council or housing association home.

Under the legislation, size criteria will restrict housing benefit to allow for one bedroom for each person or couple living as part of the household. Children under sixteen years old will be expected to share with others of the same gender, while children under ten will be expected to share regardless of gender.

Under the new legislation – labelled the bedroom tax – all claimants who are then deemed to have at least one spare bedroom will be affected and face an ‘under occupation’ penalty: a cut to their housing benefit.

The cut will be a fixed percentage of the Housing Benefit eligible rent, which the Westminster government has stated will be set at 14% for one extra bedroom and 25% for two or more extra bedrooms.

Those affected – around 660,000 working-age social housing tenants (over 30% of existing Housing Benefit claimants in the social sector) in the UK – will lose an average of £14 per week, with Housing Association tenants expected to lose around £16 per week.

The architect of the scheme is investment banker and Welfare Reform Minister Baron Freud of Eastry – who incidentally lives in an eight-bedroom Kent mansion when he is not staying in his four-bedroom townhouse in London’s Highgate. The noble Lord believes that ‘spare council house bedrooms are a luxury the country can no longer afford: “It’s not fair or affordable for people to continue to live in homes that are too large for their needs when, in England alone, there are around five million people on the social housing waiting list and over a quarter of a million tenants are living in overcrowded conditions. It’s only right that we bring fairness back to the system and make better use of the social housing stock.”

He went on: “Nearly a third of working-age social housing tenants on housing benefit are living in accommodation which is too big for their needs, in spite of the fact of severe overcrowding. We are stopping the practice of the state paying for rooms beyond claimant needs, and that should go in some way to help tackle the social housing shortage that has been blighting too many lives.”

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Lord Freud and his ministerial chums hope that more households will chose to ‘downsize’ to smaller, more affordable properties – and in the process slash £500 million from the Housing Benefit bill.  So the government reduces the national debt and tenants get suitably-sized homes: a win, win situation, then – everybody’s happy?

Sadly not. There’s a desperate shortage of suitable, smaller accommodation, as Shelter Scotland Director Graeme Brown explained: “The UK Government is simply failing to listen to the voice of reason being put forward by housing professionals, social landlords, MSPs and individuals. Penalizing low-income people for having an extra room assumes that there is a ready supply of smaller properties for them to move to. This is simply not the case. So the only consequence will be people stuck in homes with mounting rent arrears and a further descent into debt. Even at this late stage, we urge the UK Government to modify its proposals.”

According to the latest Scottish government figures, there are 586,000 households in the social rented sector in Scotland, and 105,000 of these – roughly one in five – will be affected by the Bedroom Tax, each losing an average of around £50 per month.

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Advice organisations have already seen a significant increase in demand for their services, and the imminent welfare reforms will inevitably lead to even more desperate cries for help.

Citizens Advice Scotland (CAS) Chief Executive Margaret Lynch gave evidence about the impact of welfare changes on advice services at the Scottish Parliament earlier this month.

She said: “We expect demand for benefit advice, to increase even further along with an increased need for other areas of advice such as debt, housing, and budgeting due to changes in benefits. This increase in casework, as well as the increasing complexity and time-consuming nature or many issues, is of course having a knock-on effect on the ability of our service to help our clients.

“We are already at breaking point so desperately need to be adequately resourced to enable us to help those who need it most as we aim to mitigate the impact of welfare reform as much as possible. The recent benefits uprating bill debate highlighted the statistics showing how the poorest are paying the price for cuts. The evidence we are publishing today is not just statistics but is based on the real lives of real people. It is not just about the numbers of people affected, but the severity of the individual cases. We have seen a big rise in the number of people in crisis situations, either because of the direct impact of a benefit cut or because they have fallen through the gaps in the safety net that is meant to protect them.

“The evidence we are publishing shows who is really being hit hardest by current policies and it includes thousands of people who are genuinely sick, disabled, and vulnerable and deserve support. The impact of current policies don’t just hit the individual claimant but can also have a huge effect on children and others being cared for. Pushing people further into poverty and financial difficulties will lead to an increase in other problems such as homelessness, health inequalities, and family breakdown, as well as lead to rising debt and an increase for food hand-outs. Tackling these issues in future years will only add to the overall public spending bill, not reduce it. The UK government must heed this evidence and question whether they really want to continue on a track of devastating reforms which can only damage more lives.”

Shelter Scotland has issued advice to tenants likely to be hit by the imminent benefit cuts, and urge them to ACT NOW:

If you’re going to be affected by a deduction to your housing benefit then it’s very important that you prepare for the change before April 2013.

 There are several things you can do:  

  • take in a lodgerrenting out a spare room      would bring in extra income, but make sure you get the agreement of your      landlord first and check whether this will affect any other benefits that      you’re currently receiving
  • ask for a contribution to your rent – your family members      may be able to pay more towards your rent
  • move to a smaller property – you may be able to transfer to a smaller property, speak to your council or the housing association you’re      renting from to see if you can apply to do this
  • apply for a discretionary housing payment – your local council may be able to give you temporary support to      help you stay in your home through a discretionary housing payment 

If you can’t pay all your rent after the reduction you may have to think about finding somewhere else to live or you will risk falling behind with your rent and possibly being evicted. Speak to an adviser in your area as soon as possible if you’re worried that this may happen to you.  

For Local advice:

Granton Information Centre 134-138 West Granton Road. Telephone 552 0458 Email info@gic.org.uk

Pilton CAB, Drylaw Shopping Centre: Telephone 202 1153 Email pilton@caed.org.uk

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Local MP calls for immediate investment in Port of Leith

Edinburgh North and Leith MP Mark Lazarowicz has called for immediate government investment in the Port of Leith. Participating in yesterday’s Westminster debate on unemployment in Scotland, he called for new investment in infrastructure by Government both north and south of the border to create new jobs, pointing to plans to develop the Port of Leith as a potential focus for Government-backed investment.

The North and Leith MP said: “Youth unemployment has risen sharply locally and there is also a problem of underemployment – people aren’t able to get as much work as they would like, whether with their employer or where they are self-employed.

“House building is always a sign of activity in the economy as a whole and there have been only 8 new homes built in Edinburgh North and Leith in the last quarter. Yet once again in his autumn statement the Chancellor failed to provide funding for new affordable housing.

“There were no plans either for High Speed 2 to extend to Scotland. In other sectors where the Government has announced investment – often more than once – little has happened on the ground. The Chancellor heralded new capital investment again today, but it needs to happen now not in some dim and distant future.

“A £119 million development of the Port of Leith is on a list of shovel ready projects here in Scotland. Both the UK and Scottish Governments need to get on with projects like this to create jobs so that young people desperately seeking work are not left disillusioned.”

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Deal struck for single question referendum?

There is speculation that the Scottish and Westminster governments have reached a deal over the independence question. Following months of negotiations it appears that the Scottish people will now vote in a one-question referendum – a straight yes or no – other than a ballot paper that contains another – increased powers for Holyrood or ‘devo-max’ – option.

It also seems that likely that sixteen and seventeen year olds will have the right to vote in the independence referendum, scheduled to be held in autumn 2014.

Further details will be announced when Prime Minister David Cameron meets Scottish First Minister Alex Salmond at the Scottish Parliament in Holyrood next Monday.

Should sixteen and seventeen year olds have the right to vote? Let us know!

Local MP backs action on pre-payment meters

Mark Lazarowicz MP (pictured above) backs action on fuel poverty to help cut bills of pre-payment meter users

With steep rises in energy prices on the way this winter, Mark Lazarowicz MP for Edinburgh North and Leith, is backing a new Bill to make it easier for customers who use pre-payment meters (PPMs) for their gas and electricity to switch suppliers.

Currently, users can switch providing they are not more than £200 in debt – the Bill would raise that to £300 benefitting over 200,000 people.  Mark said:  “This Bill matters because pre-payment meter users pay more for their gas or electricity even though they are over twice as likely to be in fuel poverty than those who pay by direct debit.  People often use PPMs because they are trying to budget responsibly – in some cases precisely because they were in debt – but debts for fuel bills can take a long time to pay off when someone can only afford to pay off a small amount each week. The Government is always urging consumers to switch – this Bill would make it easier for PPM users to do so and they are the people who could benefit most.”

The number of pre-payment users has risen steadily in recent years either as a conscious choice or because suppliers install a meter where someone is in debt to them. Last year over 15% of electricity customers in the UK used PPMs (4.1 million) and 13% of gas customers (2.9 million).

A recently published study by Consumer Focus found that one in six pre-payment users cut off their own energy supply in order to make ends meet – a measure of how carefully they are budgeting.  Traditionally pre-payment users have paid much more for their gas and electricity than those who pay by direct debit or standard credit.

There have been improvements more recently due to action by the regulator, Ofgem, so that the prices PPM users pay better reflect the costs of installing and maintaining the meters, but further action is needed to ensure PPM users get a fair deal.

Donald Gorrie dies

Former Edinburgh West MP Donald Gorrie has died aged 79.

Mr Gorrie represented Edinburgh West at Westminster before becoming an MSP for  Central Scotland after devolution.  Indeed, over a long political career spanning many decades Mr Gorrie represented the Liberal Democrats at every level of government save the European parliament.

A constant critic of the Holyrood building project, Gorrie was not afraid to upset his Party’s heirarchy – he was an outspoken critic of the Lib Dem’s coalition deal with Labour. He was also one of the first politicians to call for tougher alcohol laws.

A quiet and polite man, Donald Gorrie was respected across the political spectrum. He leaves behind his wife Astrid and two sons.

“I was saddened at the news of Donald Gorrie’s death. He was on Edinburgh Council for 12 years at the same time as me, and he was always respected for his straight talking and his hard work for his constituents. Above all, he was a great champion of Edinburgh and he was always ready to work with his political opponents to support projects and initiatives to benefit the city.” – Edinburgh North and Leith MP Mark Lazarowicz

“Donald Gorrie was a traditional Liberal who was respected by his political opponents and worked hard on behalf of his consituents. Only last year while I was canvassing in Edinburgh West his name would be mentioned on a number of occassiobs as the person who would ‘get action taken on our behalf’. My thoughts are with his family at this time.” – Councillor Lesley Hinds

I was very sad to hear of the death of Donald Gorrie. Donald was the  dominant figure in Edinburgh Liberal politics from his election to the then  Town Council in 1971 representing Corstorphine. He first came to public prominence as an athlete – the 880 yards was his distance and he competed for Scotland at this level.

Donald served  in local government between 1971 and 1997 when he was elected as the first ever Liberal Democrat MP in Edinburgh and the first Liberal since WWII.

Donald was the Liberal group leader on both district and regional councils when I was first elected to the region in 1994; he was a man who had a strong sense of morality and  his
politics were very much shaped by his sense of right and wrong. He had so much in common with  the great Liberal hero Gladstone in that regard and like the Grand Old Man he became more radical the older he got.

I always like to tell people that I have more fingers in pies than I have  fingers. Donald made
me look  like a beginner in that regard! He was involved in everything. President of the Edinburgh Athletics Club, he was involved with the Association of Youth Clubs, Diverse Attractions and he was a great champion of youth, setting up the hugely successful 6VT Youth cafe when he was a councillor.

In 1997 Donald finally was elected to Westminster but served only one term before going
on to serve in Holyrood from 1999 until 2007 – his main reason for getting elected to Westminster was so that he could help set up the Scottish parliament.
He made an instant impact being  named as the new parliament’s first Backbencher of the Year and busied himself with various issues from the Holyrood building fiasco to raising the issue of sectarianism and ensuring that this was finally tackled. I also recall he was the first politician I ever heard raising the issue of Hospital Acquired Infection.

He retired in 2007 but then was involved in more local groups. He became the secretary of the Friends of Corstorphine Hill and  chair of the Corstorphine Dementia Project. The list of  groups Donald helped  is too numerous for me to list, as are his many achievements. He was so energetic – a real force of nature.

Personally as a young activist and then councillor his counsel was always worth listening to. He was perhaps the most influential figure in my development as a politician. A great man, a giant of Edinburgh Liberalism and a man who was always more interested in doing things than being things. Scottish politics has lost one of its most colourful and principled characters.

Councillor Paul Edie

I knew Donald Gorrie at both Westminster and the Scottish Parliament and thought he was an outstanding parliamentarian who always spoke his own mind and wassn’t afraid to depart from his party’s line.

Malcolm Chisholm MSP