​More powers for Scotland will lessen impact of welfare reforms

A more “coherent approach” is needed in Scotland to mitigate the effects of welfare reform, a housing body has said.

Appearing at the Scottish Parliament’s welfare reform committee, the Scottish Federation of Housing Associations (SFHA) urged further devolution of welfare powers to lessen the impact of UK benefit changes.

The 2015/16 draft budget pledged continued funding for discretionary housing payments to offset the bedroom tax, the council tax reduction schemes and the Scottish Welfare Fund.

However, SFHA policy advisor Jeremy Hewer said the problems needed more than a "one year fix".

SFHA is calling for wider devolution of welfare powers to Scotland - Jeremy Hewer

He pointed to a report by the Regional Economic and Social Research in June.

“The report pointed to the fact that £1.6 billion was being taken out of the Scottish economy by welfare reforms, with the hardest hit being individuals on incapacity benefits, who stand to lose on average £3,480 per annum by 2015/16," he told MSPs.

“The 1% cap on benefits, sanctions, the breakdown of Work Capability Assessments and the transition from Disability Living Allowance to Personal Independence Payment have all taken their toll.

“A long-term, comprehensive strategy is required in order to tackle poverty and inequality in Scotland, which is why the SFHA is calling for wider devolution of welfare powers to Scotland, in order to facilitate the adoption of a more coherent approach.”

Earlier this month, the SFHA called for the devolution of all social security controls, apart from pensions, in its submission to Lord Smith’s commission looking at extra powers for Scotland in the wake of the independence referendum.