CAB manager hits out at welfare cap
CHANGES to the welfare system will hit the poorest members of society the hardest, according to Caithness Citizens Advice Bureau manager Jill Smith.
She was "disappointed" and "disheartened" by the changes passed by the UK Government at Westminster this week.
MPs backed real-term cuts to a range of benefits including income support, housing benefit and maternity pay. Although they will rise by one per cent over the next three years that figure is well below the predicted inflation rate meaning people will be worse off.
"These changes will see a real-terms cut in support for the most vulnerable families in our society and the poorest families will lose the most. I don’t think the UK Government has any understanding of how hard life is for those in our society living on the lowest incomes," said Miss Smith.
"People are turning to their local CAB in higher numbers than ever because they are struggling to be able to afford essentials like food and fuel. They may have thought things couldn’t get any worse – but for many of them they just have."
Miss Smith pointed out that many of those who are currently on benefits are in work but on low incomes. "We are very concerned about the impact on those hit by current and impending welfare cuts and changes. These are driving people into spiralling debt and more people than ever before need help from food banks just to feed themselves and their families. Ultimately, if welfare changes drive people further into poverty, other problems such as health inequalities, homelessness and family breakdown can occur because of financial pressures. Tackling those problems will only add to the overall public spending bill not reduce it."
Miss Smith said the new child benefit rules which came into effect on Monday would affect a limited number of local people who are on higher incomes.
Families with one parent earning more than £50,000 lose part of their child benefit while it will be fully withdrawn where one parent earns above £60,000.
Campaigners have pointed out that a family where two parents work and both earn £49,000 a year will keep their benefits while a family with a single earner on £51,000 will lose part of theirs. More than a million people are set to be affected by the cut.
"This is only one of the many changes which will begin in 2013. Last year with the implementation of the first phase of welfare reform, where incapacity benefit claimants underwent reassessment the demands on our services rose by 49 per cent. Throughout 2013 and beyond further changes will take effect," she added.
"I would urge those people who think they may be affected by these changes to seek information and advice as early as possible to enable them to prepare for the changes to come and to make an appointment with our Money Advice Service to review their financial situation."
Asked about the festive debt problem in Caithness, Miss Smith said: "People were finding things difficult financially without the Christmas spend and my concern is that more and more will turn to doorstep lenders and pay-day loans.
"These are completely unsuitable for long-term borrowing and can lead to spiralling debt.
"I really need to encourage those in financial difficulties to contact us as soon as possible so we can negotiate with their creditors and provide them with all of the options available.
"I would also urge everyone to review their current financial arrangements and take full advantage of the free financial advice available through our Money Advice Service project to maximise their income, reduce their outgoings and prepare a realistic budget for 2013."
