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Scottish Government’s Welfare Reform Committee: Report on Local Impact of Welfare Reform 2014
Created: 07/07/2014
News/Events Category: General NewsThe Scottish Government have launched their 5th report into the impact of welfare reform in Scotland. This highly readable report provides financial analysis at local authority ward level. It calculates the impact of reforms by the financial loss per adult of working age in each ward area. Once fully implemented the reforms are expected to take more than £1.6bn a year out of the Scottish economy. The impact on Scotland per capita is equivalent to the rest of the UK.
The average loss per adult of working age is £468 per person in Fife. In line with the Scottish average, however the level of impact varies significantly between and within local authority areas. For example Fife includes both the least affected area in Scotland and two of the most affected areas: Buckhaven, Methil, and Wemyss Villages and the Lochs. There is a huge difference of £520 per adult of working age between the most and least affected wards in Fife. This will only work to increase inequalities in Fife and increase the income gap between communities.
Key findings from the report include:
- Glasgow is the worst hit local authority area with Calton Ward in Glasgow hit hardest at a loss of £880 per adult of working age with St Andrews in Fife the least affected with only a £180 loss per adult of working age.
- There is a clear relationship between areas of deprivation and those hit hardest by these reforms.
- The reforms to Incapacity Benefit are resulting in the largest financial loss, particularly in more disadvantaged communities.
- Some households are being hit by several different elements of the reforms.
- In the absence of an increase in employment a key effect of the reforms will be to widen the gaps in income between communities, further increasing inequalities.
Here is a list of the 7 Fife wards in order of the most to least affected by welfare reform. Next to each ward is the average loss per adult of working age.
- £610 Levenmouth
- £607 Cowdenbeath
- £505 Kirkcaldy
- £500 Glenrothes
- £423 City of Dunfermline
- £410 South West Fife
- £342 North East Fife
To read the full report click here.
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