The Highland economy will lose £24 million through UK Government reforms to disability benefit, the local authority has heard.
Research by the Scottish Local Government Against Poverty estimates that changing disability living allowance to personal independence payments could lead to a loss of more than £24.6million from April next year.
Highland Council policy and development manager Sheila McKandie told the council’s resources committee today that the change, which is expected to lead to a reduction of around 20% of claimants, would have a substantial effect on the economy.
Councillors have also hit out at the increasing number of foodbanks opening in the region since the welfare reforms started.
Last year charity Blythswood opened new foodbanks in Aviemore, Kyle, Fort William and Thurso. Earlier this month it opened another in Nairn and plans to launch more foodbanks in Alness, Dingwall and Tain.
The number of Highland residents being supported by the foodbanks increased 14% between 2012 and 2013, to provide food to 4,025 – including 1,094 children.
Inverness Central councillor Richard Laird said: “The fact we have so many new foodbanks in the Highlands in the past year is utterly depressing. It’s a disgrace and demonstrates the whole problem that welfare reform is causing. I really hope we don’t see any more.”
Aird and Loch Ness councillor Margaret Davidson said: “When you look at the money that is going to come out of the Scottish and Highland economy it is huge. My father’s generation come of out the 30s and children dying of malnutrition and we are going back there.”
Inverness Ness-side councillor Alasdair Christie said: “If you are taking that amount of cash out of a particular area it will have an impact on local shops, the community and businesses as well as on the claimants who are not getting the benefit.”
The committee also agreed to set up a welfare fund to carry help provide support to people affected by the reforms, including early intervention and extra support for vulnerable groups.