Towns and cities that will be hardest hit by government welfare reforms

April 11, 2013   Carers, disability

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.

 Northern England will be hit hardest by the Government’s welfare reforms, research has shown
Northern England will be hit hardest, with residents in Blackpool set to lose out more than anywhere else in Britain when the changes to the benefits system kick in, academics at Sheffield Hallam University said.Former industrial areas including Middlesbrough, Liverpool and Glasgow will also be disproportionately affected.However, wealthier areas, predominantly in the South, such as Cambridge, Surrey and the Cotswolds, will see the smallest financial losses.

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.

Residents in Blackpool are set to lose out more than anywhere else in Britain

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

Researchers calculated the average amount that every working-age adult stands to lose in each region of Britain per year, allowing them to gauge how much each area would be affected.Working-age residents in Blackpool will lose an average of £910 each through welfare cuts.Westminster, with its high cost of living, will be the hardest hit London borough, with residents losing £810 on average.

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

http://www.express.co.uk/news/uk/391030/

 

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