Vulnerable Renfrewshire Residents set to lose millions in benefit payments
“The change in the way benefits are calculated will impact on some of the most vulnerable residents in Renfrewshire”, said Derek Mackay MSP (SNP –Renfrewshire North & West).
Commenting on the move to increase welfare benefits by CPI (Consumer Price Index) rather than RPI (Retail Price Index), Derek Mackay has warned that this will result in a loss of £3.25million in benefit payments to Renfrewshire residents. “This was a decision by the Coalition Government in Westminster to save money – by reducing increases in benefit payments, effectively devaluing these benefits over the long term.
The announcement today (Tuesday 18th October) that CPI has increased by 5.2% compared to RPI increasing by 5.6% highlights that all the benefits linked to inflation will now increase at a lower rate.
Derek Mackay MSP said:
“The September inflation rate is the one used to increase benefits for the following year. However, this will be the first time that these benefits increase by CPI rather than RPI. As the figures show, this means a lower increase for everyone relying on a range of benefits.
“It is also a disgrace that we get the usual crocodile tears from Labour politicians over changes to benefit payments when no Renfrewshire based Labour MP even bothered to turn up to vote against this change!
“They were that uninterested in the issue they didn’t even turn up to vote against these changes – in fact only one Labour MP in Scotland bothered to vote along with SNP MPs to try to keep the RPI link.
“Reducing the rate benefits increase will effectively devalue benefits over the longer period, putting severe financial pressure on some of the most vulnerable residents in Renfrewshire.
“Research has indicated that this change to CPI will result in a loss of around £3.25million in benefit payments in Renfrewshire alone.
“The SNP, supported by a range of organisations such as Scottish Council for Voluntary Organisations (SCVO) wants to devolve benefits to the Scottish Parliament yet Labour prefers to see the Coalition Cuts instead.
“In Renfrewshire the contrast could not be greater, while the SNP led council invests an extra £160,000 in our anti-poverty strategy – which Labour opposed – Renfrewshire based Labour MPs don’t even bother to turn up to stop the Coalition Government cutting the value of benefits”.
NOTES
Benefits set by September inflation
• Basic state pension
• Jobseekers' Allowance
• Income support
• Most income tax allowances
• National Insurance thresholds
• Inheritance tax allowance
• Capital Gains Tax allowances
• Disability benefits
• Maternity benefits
• Income support
• Incapacity benefit
• Child tax credit
• Working tax credit
• Child benefit
Commenting on the move to increase welfare benefits by CPI (Consumer Price Index) rather than RPI (Retail Price Index), Derek Mackay has warned that this will result in a loss of £3.25million in benefit payments to Renfrewshire residents. “This was a decision by the Coalition Government in Westminster to save money – by reducing increases in benefit payments, effectively devaluing these benefits over the long term.
The announcement today (Tuesday 18th October) that CPI has increased by 5.2% compared to RPI increasing by 5.6% highlights that all the benefits linked to inflation will now increase at a lower rate.
Derek Mackay MSP said:
“The September inflation rate is the one used to increase benefits for the following year. However, this will be the first time that these benefits increase by CPI rather than RPI. As the figures show, this means a lower increase for everyone relying on a range of benefits.
“It is also a disgrace that we get the usual crocodile tears from Labour politicians over changes to benefit payments when no Renfrewshire based Labour MP even bothered to turn up to vote against this change!
“They were that uninterested in the issue they didn’t even turn up to vote against these changes – in fact only one Labour MP in Scotland bothered to vote along with SNP MPs to try to keep the RPI link.
“Reducing the rate benefits increase will effectively devalue benefits over the longer period, putting severe financial pressure on some of the most vulnerable residents in Renfrewshire.
“Research has indicated that this change to CPI will result in a loss of around £3.25million in benefit payments in Renfrewshire alone.
“The SNP, supported by a range of organisations such as Scottish Council for Voluntary Organisations (SCVO) wants to devolve benefits to the Scottish Parliament yet Labour prefers to see the Coalition Cuts instead.
“In Renfrewshire the contrast could not be greater, while the SNP led council invests an extra £160,000 in our anti-poverty strategy – which Labour opposed – Renfrewshire based Labour MPs don’t even bother to turn up to stop the Coalition Government cutting the value of benefits”.
NOTES
Benefits set by September inflation
• Basic state pension
• Jobseekers' Allowance
• Income support
• Most income tax allowances
• National Insurance thresholds
• Inheritance tax allowance
• Capital Gains Tax allowances
• Disability benefits
• Maternity benefits
• Income support
• Incapacity benefit
• Child tax credit
• Working tax credit
• Child benefit