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Consumer Credit

Cuts to Scottish Welfare set to increase debt, Trust Deed Scotland® warns

By CreditMan Monday, March 23, 2015

The latest Westminster plans to cut Scottish Welfare were released today in a report to Holyrood. With families and single parents set to lose an estimated £960m a year, Trust Deed Scotland® warns of the problems of taking out further pay-day loans.

The coalition government’s latest welfare cuts are set to hit the poorest Scottish families the hardest, a report written from Sheffield Hallam University reveals. The report was based on a study of how hard the various cuts will affect different families in Scotland, examining measures such as tax credit cuts, the child benefit freeze, housing benefit cuts and incapacity benefit reforms.

The report concludes that single parents stand to lose around £1800 a year, while couples with dependent children face cuts of around £1400 a year. Disabled claimants also look to suffer from these welfare cuts, and can expect to lose an average of £2000 of support a year. The report also states that by 2018 when the cuts start to bite deepest, single parents with more than one child will stand to lose £1850 of benefits a year.

Professor Steve Fothergill, a professor in Regional Economic and Social Research since 1992 and one of the authors of the report, said: “The very big impact on families with children, in particular, has been under the radar because it’s the cumulative result of several reforms. Coalition ministers have argued we’re all in this together. The impacts show this is far from the case.”

Trust Deed Scotland® takes a firm interest in this kind of report. A spokesperson for the service has commented, saying “This study from Sheffield Hallam University raises a lot of concerns for the working people of Scotland.

Thousands of single parents across Scotland already face extra hurdles when it comes for caring for their children, and this report shows that rather than helping them, the government is set to increase their debts at a time when the cost of the weekly shop, childcare and housing are all rising.”

“At times like this it’s important to remember that there are alternatives to high street pay day loans, which will only increase your level of debt. If any Scottish resident needs advice on how to manage their debt in these trying times, Trust Deed Scotland® are only a phone call away, and are set to help Scots manage and pay off their debt in a safe and affordable way.”

Trust Deed Scotland® Ltd is a leading debt advisory service for Scottish residents. They are 100% owned and operated in Scotland, with a 98% Trustpilot rating owing to their free, qualified debt advice. They are able to advise on the suitability of Trust Deeds and a number of alternatives, including The Debt Arrangement Scheme, Debt consolidation and Sequestration.