More than 40 groups have made the plea to mark Challenge Poverty Week

Third sector groups have joined forces for a call to end the benefits freeze.

In a letter to Chancellor Philip Hammond – written as part of Challenge Poverty Week – it is highlighted that 750,000 Scots are set to miss out on almost £1 billion by 2020/21.

The organisations have raised concerns that rather than creating a fairer social security system that supports people when they need it and helps them into employment, the freeze only serves to add pressure to already stretched budgets.

The letter – penned by The Poverty Alliance’s Peter Kelly – has been signed by 44 different groups, including CPAG Scotland, Inclusion Scotland, Cyrenians and several unions.

It states: “We do not believe that the decision to freeze benefits including child benefit, tax credits, universal credit and housing benefit is justified on the basis of either efficiency or effectiveness.

“We are deeply concerned that rather than creating a fairer social security system that supports people when they need it and helps them into employment, the freeze only serves to add pressure to already stretched budgets.”

Impacts of the benefits freeze highlighted include evidence by Shelter that states a million households could be at risk of homelessness by 2020; 265,000 disabled people hit by a freeze on employment support allowance and 86% of ‘net savings’ raised through government cuts to social security and tax credits coming from women’s incomes.

Kelly said: “We believe that the time is right to reverse the freeze on working age and child benefits.

“If the government is serious about supporting those who are just about managing then it is vital that this unjustified and harmful policy is brought to an end.

“The freeze will have a lasting impact on the wellbeing of those affected by it, particularly children in Scotland and across the UK.”

“Of all the recent welfare reforms, the benefits freeze has had one of the biggest impacts on the incomes of households in Scotland, but is one of the least talked about,” said Citizens Advice Scotland chief executive Derek Mitchell.

“The money people receive has decreased in real terms, meaning more and more clients are struggling to make ends meet. A recent survey of CAB clients showed that, 40% on out of work benefits said they worried about money all the time with 40% saying they ran out of money more than once a month.”

Third Force News has contacted HM treasury for a response to the letter.