WORRIED… Debbie Coyle
FERMANAGH’S economy will suffer a financial loss of £22 million under the current welfare reform plans set out by the UK government, a recent report has suggested.
The changes to the benefit system will be felt by thousands of households once the reforms come into full effect here.
Research carried out by academics from Sheffield Hallam University estimate that millions of pounds will be lost from the local economy impacting on an already fragile private sector.
The loss locally of £22m is equivalent to £560 for every adult of working age, the researchers also found.
The biggest blow to Fermanagh people arises from the changes to child benefit, where an estimated 7,500 households will be impacted resulting in a loss of £2m.
Plans to change tax credits will impact on around 5,500 homes in Fermanagh which will see a loss of £4m per year, equivalent to £110 for every working adult.
According to the researchers, the impact of the reforms on Northern Ireland will be “very substantial” and for a number of individuals – those who rely more on benefits – the loss of income will be “much, much greater”.
The huge blow to the local economy will be difficult to comprehend particularly by some local retailers who have been badly effected by the recession.
The research reported that Northern Ireland will suffer the greatest financial loss compared to the rest of the UK with a total loss of £750m annually from the economy.
It also states that the large loss of income to areas like Fermanagh will have a knock-on consequences for local spending and employment. It said: “This will add a further twist to a downward spiral. A key effect of welfare reform will therefore be to widen the gap in prosperity between Northern Ireland and the rest of the UK.”
Sinn Fein councillor Debbie Coyle said: “These figures are very worrying and it would be a great concern if that kind of money would be lost from the economy.
“These kinds of cuts will be to people who are working not just to the unemployed so it will be felt by a lot of families.
“It is expected that the Universal Credit will replace means tested benefit and tax credits. We are told that it will benefit 40% of families but what about the rest of households and families.
“With Fermanagh being a boarder county they can’t forget that creates other problems especially for people living in the county but working in Monaghan.
“I hope the Social Development minister looks at this report and takes it seriously as I would be concerned how this effects local people.”
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