Wales on the Edge - Benefit Cuts

The Cuts Watch Cymru report - Wales on the Edge - highlights that almost all people who currently receive some sort of Government benefit, whether it is universal benefits such as Winter Fuel Allowance or Child Benefit, or means-tested benefits such as Housing Benefit or Income Support,  will be affected in some way.  It concludes that the changes to benefits could pull the rug from under the feet of thousands of people in Wales, often already the most vulnerable such as children and disabled people, as they face uncertainty about their income and the possibility of substantial cuts. These changes come at a time when Wales’s economic situation is already weak and job prospects are extremely limited, leaving people ill-prepared to cope. The Cuts Watch Cymru coalition is urging the Welsh Government and Local Authorities to plan ahead to cushion the blows that will affect so many people in Wales.

The report analyses the main benefits claimed in Wales, identifies recent and proposed changes to them, and highlights some evidence on the impact of changes to date. For example:

180,000 people claiming benefit (ESA or Incapacity Benefit) because they are sick or disabled will have their claims re-assessed over the next few years, with only about 5% being expected to be eligible for support because they are too ill to work. The rest will be transferred to work-related benefits, which will be means-tested so claimants with a partner will not receive anything, or off benefits altogether.

40,000 people living in social housing and claiming Housing Benefit will lose an average of £11 a week because they have a spare bedroom, forcing them to move house or face a cut in income.  

75,000 claimants of Job Seekers’ Allowance and 30,000 lone parents with children over 5 years old who claim Income Support will face tough tests to show they are seeking work.

1.2 million older people have lost between £50 and £100 in Winter Fuel Payments.

Many households will be affected several times over, for example if they receive more than one benefit such as Disability Living Allowance and Housing Benefit, and most benefits will also change with the introduction of Universal Credit.