Scottish Government
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£6 billion cut from welfare budget

Analysis shows full impact of Westminster cuts still to come.

Reforms to the welfare system could see Scottish welfare spending reduced by around £6 billion over the six years to 2015-16, new analysis published today shows.

The reforms will see a reduction in support for families, children and those with disabilities.

The majority of the total reduction in welfare expenditure in Scotland, nearly 70 per cent, is expected to be in 2014-15 and 2015-16.

The largest reductions in expenditure are from the changes to how benefits are uprated, tax credits and child benefit.

Deputy First Minister Nicola Sturgeon said:

“We are committed to mitigating against the harmful effects of Westminster welfare reforms where we can - but the majority of the cuts are still to come.

“These changes to the budget will not only impact on the most vulnerable in our society, they will also set our progress on tackling poverty back by at least ten years.

“Child Poverty Action Group has suggested that, after housing costs have been taken into account, 100,000 more children in Scotland will be pushed into poverty by 2020 because of these reforms.

“And according to the Trussell Trust, the number of people using food banks is increasing with 56,000 people needing help between April 2013 and February 2014.

“We want to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have possession of the powers to deliver it. Only then can we finally stop these reforms from harming people who need our help.”

Notes To Editors

The Scottish Government does not presently have responsibility for welfare. As a result, we are guided in our work by information published by the UK Government.

Our Expert Working Group on Welfare is considering the principles of a fair and dignified welfare system as it explores how the benefits system should enable people who can work to move into sustained employment, and how it can support people who can't work to participate in society as fully as possible. The recommendations of the Expert Working Group will be available later in the Spring.

The Scottish Government paper ‘UK Government cuts to welfare expenditure in Scotland – Budget 2014 update’ can be found online athttp://www.scotland.gov.uk/Topics/People/welfarereform/analysis/ukgwelfar ecutsbudg2014

Channel website: http://www.gov.scot/

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