Assembly Members have today been told that changes to welfare could take £1 billion out of the Welsh economy with the South Wales Valleys feeling the biggest impact.
In evidence to the Enterprise and Business Committee, Communities and Tackling Poverty Minister Huw Lewis highlighted that Merthyr Tydfil, Blaenau Gwent, Neath Port Talbot, Rhondda Cynon Taff and Caerphilly will fall within the 25 worst affected local authorities in Great Britain.
The Minister set out the potential consequences the reforms will have on communities across the country, including cutting the disposable incomes of households substantially over the next few years.
In written and verbal evidence to the committee he highlighted research by the Welsh Government, the Institute for Fiscal Studies (IFS) and Sheffield Hallam University.
The research findings claim that Wales will lose around £1.1 billion a year as a result of welfare reforms with people with children and those from low-middle income families hardest hit.
Merthyr Tydfil is the fourth worst affected local authority in Great Britain. Blaenau Gwent, Neath Port Talbot, Rhondda Cynon Taff and Caerphilly also fall within the 25 worst affected local authorities.
Speaking after the committee, Huw Lewis said: “Make no mistake; the UK Government’s plans for welfare are the biggest change in 60 years of the welfare system. They will hit the poorer members of our society the hardest. The reality is that making ends meet will no longer be possible for many families. Not only will this be a tragedy for those families, but it will have a knock on affect for whole communities, with millions of pounds being sucked out of local economies. This is at a time when the UK’s economy is seeing hardly any growth. This double squeeze will have huge economic and social implications.
“The Welsh Government will do all it can to help people through these changes and pick up the pieces of the UK Government’s decisions.”
Ten out of Ten to Huw for stating the `bleeding` obvious.
Huw Lewis said: “Make no mistake; the UK Government’s plans for welfare are the biggest change in 60 years of the welfare system. They will hit the poorer members of our society the hardest. The reality is that making ends meet will no longer be possible for many families. Not only will this be a tragedy for those families, but it will have a knock on affect for whole communities,
What he forgets, conveniently, is the Welsh Assembly`s own contributions to this ` robbing` of the poorest in our communities by their abject stubbon refusals to do anything ` imaginative` to convince housing associations and Council`s throughout Wales to prevent the `raid` on the poorest family incomes with the ` bedroom` tax.
The money they collect from these poorest families is money paid to them by the means tested system, and the Labour Party should be ashamed of themselves, Labour Councillors, Labour Assembly Members, and any of their back room movers and shakers, advisors, and propper upers, are a disgrace to the labour movement.
Lets also not forget that already arrears of rent by those less able to pay this odious tax are beginning to build up, what will councils do to prevent mass evictions? whatever they do will have to be `equitable` to the treatment of all those who fall into arrears of rent for whatever reason from time to time, and that will, inevitably involve evictions.
Huw Lewis will then crow about that whilst it is the labour politicians who are failing to be forward thinking and proactive on this issue NOW.
Jeff is correct in some of his comment, but, to blame the Labour Party for the dismantling of the Welfare state is a little bit strong.
This deliberate, and odious, `charge`, demanded from those who, generally speaking, will not be able to afford to pay it without it effecting their ability to pay other bills, rests clearly and unequivically at the feet of the Tories and their Lib Dem lap dogs.
BUT, it was and is in the power of the Labour Welsh Assembly to avoid this charge altogether, with or without the help of Plaid Cymru who I understand have already asked that the Welsh Assembly seek that Social Housing Landlords should find ways to prevent it being visited on poor families.
The `Labour` Welsh Assembly decided NOT to prevent the charges being made in Wales, and having done so they should not try now to absolve themselves from any responsibility for the serious effects it will have on families, particularly pushing more children BACK INTO POVERTY in Wales.