The Coalition Government is in the process of legislating to break the link between benefits and inflation, for all other benefits by capping any increase to benefits payments of 1% per annum, which is below the rate of inflation for the next three years. This is expected to have the cumulative effect of introducing a 4% real-terms cut to working-age benefits payments received by workers and jobseekers.
Commenting on the report the SNP's Work and Pensions spokesperson Eilidh Whiteford MP (Banff and Buchan) said: “This report makes damning reading for the Westminster Government who are set to throw their commitments to tackle child poverty out the window by hammering some of the poorest people in society.
“It shows that their arguments are fundamentally flawed and are set to do untold damage to thousands and thousands of people across Scotland.“The Coalition’s welfare plans will inevitably only increase poverty and increase inequality in society, which is why they have been condemned in such stark and unequivocal terms.
“It could scarcely be clearer that the Westminster Government has its priorities all wrong and are failing to act in the interests of people in Scotland.“Decisions over taxes and welfare in Scotland should be made by people in Scotland so that we can build the kind of country that Westminster has consistently failed to deliver. Only a Yes vote for an independent Scotland in next year’s referendum will give us that opportunity.”
The Department of Work and Pensions says that "The Benefit Cap will see the amount people can receive in benefits capped at the average earned income after tax and National Insurance for working households of £500 a week for couple and single parent households – the equivalent of £26,000 per year. It will apply to the combined income from JSA, Income Support, Employment and Support Allowance, Child Benefit, Child Tax Credits and other benefits.
Certain households including those with someone in receipt of Disability Living Allowance or the Support Component of ESA and war widows and widowers will be exempt. To increase the incentive for people on out-of-work benefits to find work, households with a member who is entitled to Working Tax Credit will also be exempt from the benefit cap. The Department for Work and Pension’s has allocated £100 million in Discretionary Housing Payments to help support vulnerable people affected by this change."
“It shows that their arguments are fundamentally flawed and are set to do untold damage to thousands and thousands of people across Scotland.“The Coalition’s welfare plans will inevitably only increase poverty and increase inequality in society, which is why they have been condemned in such stark and unequivocal terms.
“It could scarcely be clearer that the Westminster Government has its priorities all wrong and are failing to act in the interests of people in Scotland.“Decisions over taxes and welfare in Scotland should be made by people in Scotland so that we can build the kind of country that Westminster has consistently failed to deliver. Only a Yes vote for an independent Scotland in next year’s referendum will give us that opportunity.”
The Department of Work and Pensions says that "The Benefit Cap will see the amount people can receive in benefits capped at the average earned income after tax and National Insurance for working households of £500 a week for couple and single parent households – the equivalent of £26,000 per year. It will apply to the combined income from JSA, Income Support, Employment and Support Allowance, Child Benefit, Child Tax Credits and other benefits.
Certain households including those with someone in receipt of Disability Living Allowance or the Support Component of ESA and war widows and widowers will be exempt. To increase the incentive for people on out-of-work benefits to find work, households with a member who is entitled to Working Tax Credit will also be exempt from the benefit cap. The Department for Work and Pension’s has allocated £100 million in Discretionary Housing Payments to help support vulnerable people affected by this change."
