UK Government welfare reforms are likely to “exacerbate” health inequalities in Scotland, a new NHS report has warned. Researchers at health improvement agency NHS Health Scotland also found a “striking” link between mental health problems and benefit sanctions, which they say should be scrutinised further.

The findings are contained in a report into the impact on health of economic recovery and changes to social security.

The report concluded that while social security reform has yet to be fully implemented in Scotland, the “recent and planned changes to social security are likely to reduce the incomes of the poorest groups further and exacerbate health inequalities”.

It added: “Health would be protected by increasing the value of social security ... and reduced use of sanctions. In the meantime, mitigation through sensitive service responses for those placed in severe poverty are required.”

According to the report, the rate of benefit sanctions – where payments are cut or stopped for failing to meet requirements of the Department of Work and Pensions (DWP) – has more than doubled in 10 years.

In 2014-15, the rate of sanctions was 4.1 per 100 claimants of Jobseeker’s Allowance (JSA) every month – compared to just 2.6 per 100 per month between 2000/1 and 2005/6.

Positive health trends – such as a continued decline in the number of deaths from heart disease and respiratory disease – were identified.

However, the report noted that while mental health problems for working-age adults had fallen between 1998 and 2003, there had been a subsequent increase – which was particularly sharp in 2012-13.

It added: “This trend was driven by deterioration in the mental health of working-age adults living in the lowest-income households.”

The report noted the impact of economic change and welfare reform on health is not yet clear-cut. “In many indicators, it may be premature to attribute economic or health outcomes (positive or negative) to changes in social security,” it said.

“However, in one area – benefit sanctions – the association between trends in mental health problems among low-income working-age adults and the level of sanction activity is striking – and deserves closer consideration.”

A DWP spokesman said: “Sanctions have continued to fall. JSA sanctions have halved compared to last year, and ESA (Employment Support Allowance) sanctions have fallen by a third.

“Our welfare reforms are transforming the lives of some of the poorest families in society, giving people the skills and opportunities to move into work and enjoy the security of a regular wage.

“Sanctions are an important part of our benefits system and it is right that there is a system in place for tackling those few people who do not fulfil their commitment to find work.”