Welfare cuts will cost Falkirk economy

The economy will suffer because of benefits cut
The economy will suffer because of benefits cut

The impact of controversial welfare reforms will cost the local economy £46 million a year a report has warned.

The Scottish Government’s Welfare Reform Committee estimate that when the changes come into full effect the drop in potential spending will be equivalent to £450 a year for every working age adult living in Falkirk district.

While that is £10 below the the national average, the shock statistics released by committee convener Michael McMahon MSP still make grim reading.

Across the district it is predicted businesses in the Falkirk South Ward will be hardest hit with working age adults there seeing their benefits cut by £560 a year. The breakdown shows Grangemouth and Falkirk North likely to lose out by £490, Upper Braes by £470, Lower Braes £440, Bo’ness and Blackness and Denny and Banknock by £410, Bonnybridge and Larbert by £400 and Carse, Kinnaird and Tryst by £390.

Mr McMahon says the biggest financial losses in more disadvantaged communities will come from the changes to the way incapacity benefits are paid. Means testing for Employment and Support Allowance claimants starts next year.