Thousands in Highlands could see their disability welfare scrapped

More than 3,000 people who receive disability benefits in the Highlands could see their payments scrapped because of a major overhaul of the welfare system.

The UK Government plans to introduce a single Universal Credit in 2013 which will replace six income-related work-based benefits, including Disability Living Allowance (DLA) and Income Support.

It is the most radical shake-up of the benefits system since the 1940s and the Conservative/Lib-Dem administration has argued millions of people have become trapped on benefits.

In the Highlands, more than 12,000 people who suffer from severe physical disability and mental health problems like depression and schizophrenia receive disability payments.

However, there are 32,40 people receiving the lowest grade of DLA payment - which is about £20 a week - and Highland Council officials have warned they are at risk of losing that income because they may no longer be viewed as eligible when they are reassessed.

About 560 single parent households could also be affected by the proposed changes to Income Support, figures released in response to a question from Councillor Dave Fallows have revealed, ahead of the local authority’s meeting on Thursday.

Councillor Fallows, a member for Badenoch and Strathspey, was alarmed by the number of people who could be hit and warned "a storm was coming" with the welfare reform.

"These are very large numbers of people and it is quite worrying but my fear is the fine detail is worse than that," said the SNP councillor.

"People who have a certain level of support at the moment will find the rug pulled out from under their feet. We need to look after our own people if there are major problems of funding and make sure we have sufficient resources."

Councillor Fallows said the local authority had to ensure it supported third sector support organisations like the Citizens Advice Bureau (CAB) in the face of the benefit changes.

Alasdair Christie, who is the manager of the Highlands’ biggest CAB in Inverness, said the reform could affect some of the most vulnerable people in the region.

"Word is starting to get round the claimants and a lot of people are worried that they will see a reduction in their income, when a lot of them are already on very low incomes already," he said.

Mr Christie said about 40 per cent of the people who currently contacted the city’s CAB had benefit queries and expected that figure to rocket when the changes come into effect.

Mr Christie, who is also a Highland councillor for Inverness West, added benefit fraud was very rare and was concerned that the government was seeking to save money.

But he said that using one universal benefits application form could simplify the process.

Inverness, Nairn, Badenoch and Strathspey MP Danny Alexander denied the shake-up would have a negative impact or confuse benefits claimants in the region.

"The changes that are being made will help get more people into work, tackle fraud, but still make sure the most vulnerable get the help they need," said the chief secretary to the Treasury.

He said there would be a 5.2 per cent benefits and pensions increase and claimed the current system was "broken and bloated" which trapped people in poverty when it should be helping them into work.

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