According to a Scottish government report Scotlands poorest families will suffer the most from measures in Junes UK government budget. The report analysed the budget plan details.
It is thought that next years VAT rise of 2.5 percent will cost the average Scottish family around 380 pounds a year. A freeze in child benefit means that around 620,000 families will lose out in Scotland. The report also suggest that families earning over £25,000 will see their benefit entitlements cut next year as a result of the child benefit freeze and restrictions on child tax credits.
John Swinney who is a spokesman for Scottish Finance said that the report underlined the case for Scotland being given responsibility for its own finances.
A Scotland Office spokeswoman said that the budget was tough but fair. She also said that we are now making tough unavoidable decisions which we hope will strengthen and unite the country.
It is very concerning that poor people will be hit hard with yearly household bills rising by up to £400. Will this result in more people needing to take out payday loans to pay their regular bills?
Some decisions can really be tough but fair. But do they really need to freeze child benefits? Is there no other way this could be done? Are all options exhausted?
The only way to get out of debt is with a long-term plan of action and then sticking to it.
Credit debt ‘didn’t just happen overnight’ it was building up every time someone used their credit card.
It can be made less painful though with a bit of help.
This is very interesting article, about 3 months ago I was working in Travel & Hospitality industry and our vacation homes were full only with Scottish families. I though that UK economy had start improving, but probably I have been wrong.
Interesting article. But why have they reduced child benefits?
To save on public spending it’s projected to save almost £3bn by 2015. Harsh but that’s the reality
not sure its just the poor Scottish that are begin hit the hardest but interesting well written article and definitely take your points on board.
When Governments penalize Businesses then they do not hire as frequently or spend as much. This makes jobs harder to come by thus hurting the poor and middle class.
i don’t see how this is the case, most people on benefits will not bew affecte at all, as far as i can tell low income families will not see any cuts to child benefit or child tax credit
off course they will need a payday loan clear their bills. I agree with the govt. but they should consider the poor families who can not bare the raising bills. There going to be hard days for them.
Good info thanks for sharing with us.
The only way to get out of debt is with a long-term plan of action and then sticking to it.
Credit debt ‘didn’t just happen overnight’ it was building up every time someone used their credit card.