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Impact of Proposed Disability Benefits Cuts on Wales and Northern England
A significant £5 billion initiative aimed at reducing disability benefits by the UK government is set to disproportionately affect residents in Wales and northern England, potentially worsening existing levels of deprivation, according to recent findings.
The consultancy Policy in Practice has analyzed the implications of these proposed changes across different regions and local authorities, revealing a stark and uneven impact throughout the UK.
The research indicates that the greatest hardships will be felt in north-east England, north-west England, and Wales, which are expected to experience three times the economic repercussions compared to London and the south-east, with affected populations double those in the capital and its outskirts.
The analysis identifies ten local councils, including Blaenau Gwent, Hartlepool, and Blackpool, where the economic implications may reach nearly five times the national average. In these areas, nearly one in ten residents could see changes to their benefits.
Deven Ghelani, director of Policy in Practice, emphasized the need for local leaders to grasp the potential impacts to prepare for an anticipated surge in demand for services and safeguard vulnerable communities. “These reforms will manifest differently across various regions,” Ghelani remarked. “Certain areas will experience compounded difficulties due to smaller economies losing a proportionately larger share.”
He pointed to the significant overlap between regions experiencing economic challenges and high rates of disability, stating that the reforms could deepen existing economic hardships.
The proposed changes include stricter eligibility requirements for personal independence payments (PIP), aimed at reducing the number of claimants. Analysis from Policy in Practice suggests approximately 2.9 million individuals could be affected, collectively facing losses totaling £6.8 billion.
As these reforms roll out, it is anticipated that by the end of the current parliamentary session, around 8,000 individuals will lose PIP payments, valued between £3,800 and £5,700.
The government has defended these changes as necessary for reforming a “broken benefits system,” intended to provide better job and skills support for those who are ill or disabled and capable of work. However, many Members of Parliament remain skeptical, fearing that these cuts amount to unjustifiable financial reductions targeting the most disadvantaged.
According to the findings from Policy in Practice, north-east England could see nearly 170,000 people (6.2% of its population) affected, resulting in a £400 million loss. In Wales, the impact is similarly severe, affecting nearly 190,000 individuals (6.1%), with a loss of about £470 million. North-west England could experience the highest toll, with approximately 430,000 people affected (5.7%) and a financial loss exceeding £1 billion.
These statistics reflect a broader pattern where areas already challenged by economic hardships will face greater adverse effects from the proposed benefit cuts. This could undermine ongoing efforts aimed at revitalizing local economies.
The analysis highlights a concerning trend: deprived areas with higher numbers of individuals reliant on disability benefits will bear a greater overall impact, intensifying the struggles of already vulnerable communities.
Furthermore, it is projected that over 3 million households across the UK will be affected by the changes to disability and incapacity benefits commencing next year, with estimates suggesting that these cuts could thrust 250,000 individuals, including 50,000 children, into poverty.
A representative from the Department for Work and Pensions stated: “As part of our Plan for Change, we are establishing a sustainable welfare system that provides effective support to help sick and disabled individuals secure employment, dismantle barriers, enhance living standards, and stimulate economic growth.”
“This initiative is further supplemented by our Get Britain Working white paper, which outlines transformative employment reforms—backed by £240 million—collaborating with governments, local leaders, the NHS, and employers to elevate employment prospects and foster economic development.”
Source
www.theguardian.com