Lone parents ‘hardest hit’ by welfare reforms
SINGLE-PARENT families face losing more than £4000 a year in benefit cuts due to the UK Government’s austerity drive, a new report has found.
The Scottish Government report examines the impact of welfare changes announced since 2015, including the benefit cap, two-child limit on tax credits and associated rape clause and the four year freeze to working-age benefits.
Communities, Social Security and Equalities Secretary Angela Constance said those on low incomes had been “targeted” by the changes, with families with children “hardest hit”.
It bis estimated that welfare policies mean an unemployed single parent with three children will be £4080 worse off a year by 2020/21, facing a 18 per cent reduction in income from £23,385 to £19,205.
Researchers claim even if the parent secures work, they will still be £940 a year worse off due to benefit changes.
Meanwhile, a working couple with two children face an estimated £1540 reduction in annual income to £24,300 by 2020/21 compared to having had no welfare cuts.
The analysis does not account for the impact of other payments families may be entitled to.
Researchers said the analysis does not take into account the impact of transitional protection payments which families may be entitled to and disregards entitlements to reclaim childcare costs under universal credit, claiming it is “less relevant”.
The report forecasts the fouryear freeze on working benefits as the welfare change since 2015 which will have the largest impact on Scotland, estimating it will cut annual welfare spending i n Scotland by £370million by 2020/21.
The reduction in universal credit work allowance is expected to lead to a £250m drop in the same period, while the two-child limit is forecast to cut £95m.
A UK Government spokesman said: “Our reforms will ensure we have a welfare system that’s fair to those use it as well as those who pay for it.
“The best way to help people support their families is to help them into work, and we have record numbers of people now in employment.
“We’re helping millions of families meet the everyday cost of living and keep more of what they earn – we introduced Universal Credit, increased the National Living Wage and tax free Personal Allowance to make sure it pays to be in work.
“We’ve also doubled free childcare, and continue to spend over £90 billion a year supporting people who are out of work or on a low income. Budgeting advice and benefit advances are also available for anyone who needs more help.”