Cruel Tory cuts cost councils £24m to fix
Revealed: ‘Eye-watering’ price of callous welfare reform
CASH-STRAPPED Scottish councils are being forced to spend more than £24million in a bid to undo the damage of the UK Government’s controversial welfare overhaul, the Record can reveal.
A series of freedom of information requests have uncovered the “eye-watering” sums local authorities up and down the country have set aside to help deal with the impact of Universal Credit.
The councils facing the biggest financial hit are in areas of high unemployment and poverty.
South Lanarkshire Council are worst affected having put aside almost £4.5million in 2018-19 for Universal Credit-related spending, including extra staffing, bad debt provision and future planning.
The figure for Midlothian is £3.6million, Glasgow £2.5million and Edinburgh £3million.
Universal Credit – a six-in-one benefits payment – was brought in as part of the UK Government’s overhaul of the welfare system.
Critics say cuts to payments, delays in receiving initial payments and widespread implementation problems have led to many people falling into hardship or dropping out of the benefits system altogether.
It is now paid to 1.3million people across the UK and is expected to cover three million by December 2019.
Tory ministers have poured £1.7billion a year into the benefit and slowed down the “migration” of existing claimants. But the new figures show the changes will also have financial implications for councils who often have to provide emergency support and advice to people facing financial crises.
SNP MSP Shona Robison said the figures were further proof the system was failing.
She said: “Universal Credit is a broken system – it’s leaving people destitute, it’s driving kids into poverty and forcing families to rely on foodbanks.
“And these latest eyewatering figures show that it’s Scotland’s councils left picking up the pieces and footing the bill.
“Money is being diverted away from key public services to cover the costs and mitigate the damage caused by this appalling change being imposed by the UK Government on Scotland. That is fundamentally unfair.
“But there’s an easy solution – halt the rollout of Universal Credit and fix this broken policy. Or better still, put all welfare powers in the hands of the Scottish Parliament so we can build a social security system which puts dignity, fairness and respect at its heart.”
New Work and Pensions Secretary Amber Rudd was this week urged to move fast to reform Universal Credit after admitting there’s “a problem” with it.
Rudd was told to sweep away the worst of the changes after taking over from Esther McVey who quit over Brexit.
She accepted there’s been a rise in foodbank use – including in her own Hastings constituency – during Universal Credit’s rollout.
But she insisted it was “a tremendous force for good in this country” on the whole and said the Government’s motives in reforming the complex benefits system were compassionate.
The cost of mitigating Universal Credit comes at a time when councils are already struggling.
Umbrella organisation Cosla this week warned some are on a “cliff edge” after years of cuts to their budgets.