Levels of poverty in Wales could increase dramatically as a result of the º£½ÇÊÓÆµ Government’s planned changes to welfare payments, a think tank has said. In March, the º£½ÇÊÓÆµ Government announced changes to disability benefits and Universal Credit.
There have been repeated concerns about the impact of the proposal and questions about how it will impact on Wales.
A report from think tank the Bevan Foundation says the percentage of households affected could more than treble, from 24.5% to 78.4%.
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Part of the º£½ÇÊÓÆµ Government proposals included measures to get people back to work. With those taken into account, the think tank says it is likely that, once the reforms are fully rolled out, households affected by the reforms will still be more than twice as likely to be living in poverty than is currently the case.
Data experts Policy in Practice found some households are set to be more than £900 a month worse off.
Earlier this month, Policy in Practice said nearly 190,000 people will be affected by the changes to benefits.
The Bevan Foundation’s head of policy (poverty), Dr Steffan Evans, said: “These new findings make for incredibly grim reading.
“It is clear that, without a rethink, the º£½ÇÊÓÆµ Government’s proposed reforms to the benefits system will have a particularly severe impact on poverty in Wales, making life harder for thousands of disabled people.
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“The results highlight just how important the benefits system is in reducing poverty. Whilst the º£½ÇÊÓÆµ Government is right to take action to support disabled people back into work, work can only ever form part of the answer. It is vital that the º£½ÇÊÓÆµ Government maintains a strong safety net to ensure people can access the support they need.”
Deven Ghelani, of Policy in Practice, said: “This research lays bare the sharp rise in hardship many disabled people in Wales could soon face. Local authorities need to prepare for the increase in poverty these reforms will trigger. The data also shows they are not powerless.
“By using insights like these, councils can target support, plan services more effectively, and advocate for the resources their communities will urgently need.”
The º£½ÇÊÓÆµ Government has failed to give any figures for how its welfare changes will impact on Wales, despite repeated questions and requests for data.
“There is acceptance that Wales has a high level of people who claim benefits, and the Western Mail asked the Department of Work and Pensions, the Treasury and the Wales Office on the day of the Spring Statement how many people would be affected in Wales. None of them could answer.
When we interviewed Chancellor Rachel Reeves on her visit to Wales the day after the Spring Statement, she said it was “not usual” to give figures for Wales, but they were looking at the request.
The Welsh Government was not able to provide figures either. Despite subsequent requests, no-one has been able to answer.
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It led to a row between the Labour administrations in Wales and London. First Minster Eluned Morgan said she was “really worried” about how the changes might impact people.
Wales’ Health Secretary, Jeremy Miles, also said at the time it was not a decision the Welsh Government would have made and said the decision was “wrong”.