Welfare Reform will have negative impact on economy

27 10 2012

Ballycastle SDLP Councillor Dónal Cunningham has warned about the economic effects of the Welfare Reform Bill.

The Welfare Reform Bill will impact on those who are currently in receipt of Working Tax Credit, Child Tax Credit, Income Support, Income Based Job Seekers Allowance and income related Employment and Support Allowance (ESA) and Housing Benefit who will be moved to Universal Credit.  

Many working people in receipt of tax credits will have already seen a reduction in Tax Credits from 1 April 2012 and it is likely a further reduction will be imposed by the introduction of this legislation.  The SDLP are opposed to the Bill and believe it is unjust to further attack the most vulnerable in our society.

It is estimated that if implemented it will remove approximately £500m from the North’s economy and will impact on both in work and out of work families. 

 Public sector workers currently working in the delivery of the benefits affected i.e. Housing Benefit (NIHE) Income Support, Job Seekers and Employment and Support Allowance (ESA) and Tax Credits (HMRC) will be negatively impacted with a proposed reduction of up to 1600 jobs. It is important that we all work hard to protect these vital public service jobs.