Changes to welfare and benefits that come into effect today will have a “destabilising, damaging and devastating impact on communities across Wales”, a Welsh Government Minister has warned.
Huw Lewis, Minister for Communities and Tackling Poverty said making ends meet for thousands of people will soon be a significant challenge as changes, such as the “Bedroom Tax”, take effect.
Mr Lewis said: “Today is a watershed moment. After months of debate and opposition we will begin to see the very real impact the changes to welfare will have on thousands of people’s everyday lives.
“Independent reports show that the proposals will take at least £590 million from Wales and this will have a damaging, destabilising and devastating impact on people and possibly whole communities across the country.”
Wales has a higher dependence on welfare benefits than Great Britain as a whole, with the latest statistics (May 2011) showing that 18.4% of the working-age population in Wales claiming welfare benefits compared to the Great Britain average of 14.5%.
A report recently published for the Welsh Government by the Institute for Fiscal Studies, revealed changes to the UK welfare system will reduce total benefit and tax credit entitlements in Wales by around £590 million in 2014/15.
An internal Welsh Government report also found that an estimated 42,500 people in Wales will lose their entitlement to Disability Living Allowance, an average loss of up to £83 per claimant per week and an annual loss of up to £183 million in Wales as a whole.
Other changes include a 1% cap on increases to most working-age benefits and tax credits and limiting the amount of housing benefit paid to claimants living in social housing that are deemed to be under-occupying their accommodation.
Mr Lewis added: “These changes are the product of Westminster, but the reality is the effects will have to be dealt with by the Welsh Government. That is why I have been appointed as the Minister with responsibility for welfare reform. We will do all we can to help people through these changes and pick up the pieces of the UK Government’s decisions. However, our own budgets are under more pressure than ever before. People have to realise that the welfare changes have the potential to affect public services across areas like health, social care, housing, education, local government and more. We will have to pick up the pieces of the UK Government’s decisions.”