Towns and cities that will be hardest hit by government welfare reforms
Welfare reforms ‘will take £19bn A YEAR out of economy and hit poorest hardest’
CONTROVERSIAL new welfare reforms to be implemented by the Government will take almost £19 billion a year out of the UK economy, researchers revealed today.
Researchers assessed the financial impact of changes made by the Conservative-led coalition to housing benefit – including the so-called bedroom tax on public housing tenants who have unused rooms – disability living allowance, child benefit, tax credits, council tax benefit and several other hand-outs.
Professor Steve Fothergill, from Sheffield Hallam’s Centre for Regional Economic and Social Research, led the study, which was based on a range of official statistics.
He said: “A key effect of the welfare reforms will be to widen the gaps in prosperity between the best and worst local economies across Britain.
“Our figures also show the coalition Government is presiding over national welfare reforms that will impact principally on individuals and communities outside its own political heartlands.”
Generally, the more deprived the local authority, the greater the financial impact, Prof Fothergill found.
He said the three regions of northern England – the North West, North East and Yorkshire and Humberside – can expect to lose a total of £5.2 billion a year in benefit income.
In a stark contrast, much of the south and east of England outside London escapes comparatively lightly.
A key effect of the welfare reforms will be to widen the gaps in prosperity between the best and worst local economies across Britain
Professor Steve Fothergill
Those in Middlesbrough will lose an average of £720, making it the worst affected part of the North East.
However, the Department for Work and Pensions said the reforms will benefit the vast majority of working households.
A Government spokesman said: “Around nine out of ten working households will be better off by on average almost £300 a year as a result of changes to the tax and welfare system this month.
“Raising the personal allowance to £10,000 we will have lifted 2.7m people out of income tax since 2010.
“Our welfare reforms, including reassessing people on incapacity benefit, will help people back into work – which will benefit the economy more than simply abandoning them to claim benefits year after year.
“These changes are essential to keep the benefits bill sustainable, so that we can continue to support people when they need it most across the UK.”
Towns and cities that will be hardest hit by government welfare reforms:
North East: Middlesbrough £720
North West: Blackpool £910
Yorkshire and the Humber: Hull £630
East Midlands: East Lindsey £610
West Midlands: Stoke £670
East of England: Tendring £620
London: Westminster £820
South East: Hastings £690
South West: Torbay £700
Wales: Merthyr Tydfil £720
Scotland: Glasgow: £650