Dearne claimants could be hit by £33.2m benefits blow, says council

The figure was revealed this week as part of the Coalition Government’s proposals to shake-up the benefits system through the Welfare Reform Bill 2011.

Local authorities have been urged to “think seriously” about how they can minimise the impact of the reform which will save around £21 billion nationally if it is rubber stamped.

A spokeswoman for Barnsley Council said: “The proposals, as they affect Barnsley, would see an estimated £33.2 million reduction.

“This would effectively be taken out of the local economy, due to the reduction in the amount of benefits available annually to local people and their families.

“It is important to note that the £33.2 million reduction in benefits is in addition to the budgetary pressures which the council and its public sector partners are facing over the short to medium term.

“This makes for a significant financial cocktail over the next three to five years, with the potential for a much longer legacy.”

The spokeswoman said that £33.2 million was equal to the loss of income from around 3,160 jobs paid at £12,000 per year.

She added: “As a result, in addition to the existing overwhelming local need for sustainable job creation, Barnsley would need to create 3,160 additional jobs to compensate for the annual loss in the borough. 

“Obviously the council and other local statutory sector agencies can not compensate for the effects of the wider Government Welfare Reform proposals.

“However, an action plan is currently being developed to provide some practical measures to help ease, as far as possible, some of the adverse effects on the borough and its residents.”

The Welfare Reform Bill 2011 is the final strand of the Government’s reform of the social security system and will be subject to scrutiny as it goes through Parliament.

If it is given Royal Assent, the Act will come into force from April 2013.