DUNFERMLINE and West Fife is expected to miss out on almost £28 million as a result of UK Government welfare changes.

A Fife Council report warns that, on average, the benefits reform will leave each adult of working age more than £600 worse off per year.

However, the Tories dismissed it as "outdated and inaccurate".

The report says that the estimated loss to the Kingdom's economy as a whole will be £153m per year by 2020 with concerns about extreme hardship for local people and a greater reliance on foodbanks.

Dunfermline MSP Shirley-Anne Somerville slammed the changes, calling for them to be halted immediately, and said: “Once again, UK Government welfare reforms are failing Dunfermline and West Fife.

“These changes will hit people who are less well off the hardest, driving vulnerable families into debt and rent arrears. And with less money in people’s pockets, the local economy will take a hit too."

A report by the Fife Council research team, on the expected impact of welfare reform changes, warned: "Significant amounts of money have been, and are being, lost to local people and the local economy each year as a result of welfare benefit changes.

"The expected loss to the Fife economy is estimated at around £153 million, per year, by 2020.

"That means that, on average, each adult of working age will have around £655 less in their pocket each year.

"The geographical impact of the changes is uneven, with poorer communities more likely to be affected.

"The full impact of welfare reform changes has yet to be fully seen in Fife with some reforms yet to be implemented."

And it could be even higher than £153m as the report added: "This figure is expected to be an underestimate as inflation remains higher than forecast."

The report states that the total loss to the local economy, by council ward, is: Cowdenbeath, £6.4m; Dunfermline Central, £6.5m; Dunfermline North, £6.3m; Dunfermline South, £7.9m; Inverkeithing and Dalgety Bay, £5.3m; Rosyth, £6.1m; The Lochs, £8m; and West Fife and Coastal Villages, £7.1m.

Ms Somerville said the full impact of welfare reform was yet to be fully felt in Fife, with some changes still to be implemented, including moving thousands of people off other benefits and onto Universal Credit.

She said: "The UK Government have already accepted that their policies have left people dependent on charity to feed themselves.

"It would be absolutely wrong for them to plough ahead with further reforms when they are having this sort of impact.

“We urgently need a new approach to social security, based on the example we are setting here in Scotland, rooted in dignity, fairness and respect."

In response, Conservative MSP Michelle Ballantyne, the party's shadow cabinet secretary for communities and social security, said: "The study this report relies on is now half a decade out of date.

"This outdated and inaccurate analysis completely ignores the improvements made to the system in the Autumn budget.

"Over £1 billion has since been put into the system and important changes have been made that have tackled some of the key issues with introducing the new benefits system.

"Universal Credit now provides more frequent payments for new claimants, a new online system for private landlords, a £1,000 increase in work allowance and a more flexible approach to childcare provisions.

"None of these changes, or the UK Government’s increased funding for social security, are reflected in this report."