Welfare reform set to hit the county hard

CHANGES to the welfare regime being debated in Westminster are set to hit Caithness hard, according to the chief executive of Pentland Housing Association.

David Brookfield said that new measures could lead to a significant number of people getting deeper into debt.

To help prepare the public for the changes, which look set to be introduced, three meetings are being arranged in the county.

The Government wants its new Universal Credit, which would be introduced by the bill from 2013, to include an under-occupancy penalty for council and housing association tenants who are considered to have more rooms than they need.

The current rules allow tenants to have one spare bedroom, but if the Government proposals are passed those who have an extra bedroom which is not used on a permanent basis would lose 14 per cent of housing benefit a week, and those with two or more extra rooms would lose 25 per cent if they decline to move to a smaller property.

Mr Brookfield said that the so-called Bedroom Tax proposals would hit people in Caithness particularly hard if it is given the go-ahead in 2013.

"We are very concerned about the under-occupancy rule which is going to affect single adults and elderly people especially," he said.

"If it is allowed to pass it will result in people on benefits being penalised for not living in a single-bedroom flat or house.

"This will hit elderly tenants who may live in a three-bedroom house where a child has left the home, and could mean them receiving less funding.

"So they’ll have to find extra money or move to another house which is a one-bedroom property, which there is a definite lack of in the Caithness region."

Pentland Housing Association is also concerned about other aspects of the new Universal Credit system which will merge income-related jobseeker’s allowance, housing benefit, child tax credit, working tax credit, income support and income-related employment support allowance into a single payment.

Mr Brookfield said that it might be more convenient for people to receive all their benefits in one lump sum, but he believes it is important they are aware of the dangers of mismanaging the money.

"The changes will definitely affect the community as a whole as people will no doubt become poorer as a result of these reforms," he said.

"We are worried that the Universal Credit will result in people on benefits receiving their money in one lump sum, struggling to sort out for themselves where the money will go.

"It can be imagined the difficulties that it will cause for people; they may think it is a good to receive their money all at once, but when reality hits to pay rent and bills for food and heating, it may be problematic.

"There is a danger of people falling into arrears and we want to give them the best possible advice on how to cope."

Three meetings are being arranged next Tuesday (February 28) in Thurso to discuss changes.

A meeting aimed at young mothers will be held at 1pm in the Ormlie Community Centre with another arranged for the public at 7pm.

A meeting will also be held at the Pentland Housing Association offices at Traill Street between 4.30pm and 6pm for anyone on state benefits.

For more information telephone 01847 892 507 or e-mail pha@pentlandhousing.co.uk