Welsh Government
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Report reveals impact of welfare reform on women and other groups

New research into the impact of changes to the welfare system suggests that women in Wales are more likely to be adversely affected and tend to lose the most compared to men.

The findings published recently by the Welsh Government, highlight that single parents who are out of work, most of whom are women, are one of the groups that will incur the largest reduction in benefit and tax credit entitlements.

As well as hitting the incomes of disabled people hard, some carers of disabled people may also lose some of the support they currently receive as a result of the welfare reforms.  

The report is the third in a series commissioned by the Welsh Government to better understand the impact of the UK Government’s welfare reforms on the people of Wales.

The latest report shows:    

  • Compared to men, women are more likely to be adversely affected and are expected to lose the most from a number of reforms while in the case of Universal Credit they will gain the least.
  • Universal Credit will be paid to one member of a household. For couples, this is likely to be the male, which could potentially disadvantage the female.
  • Non-working lone parents, of which around 90% are female, are one of the groups that will see the largest income losses.
  • Couples will be worse off if there is a second earner in work.
  • There will be significant impacts on disabled people in Wales, as a result of Universal Credit, changes to benefit and tax credit indexation, Disability Living Allowance, Incapacity Benefit, Employment and Support Allowance and Housing Benefit.
  • Carers of disabled people may lose their entitlement to Carer’s Allowance as a result of the move from Disability Living Allowance to the Personal Independence Payment. In addition, under Universal Credit a carer will only be entitled to either a carer or a disability element, not both. This will mean that some carers with health problems will be worse off.
  • Some disabled children; disabled people without an adult to assist them, and disabled people in work could lose some of the disability support they receive under the current benefit system.
  • Disabled people and older people are less likely to use the internet and so may have difficulty making online claims under the new system.
  • Pensioners are largely unaffected by the welfare reforms as most of these apply to working-age people. On average, older working-age people will see an income loss under Universal Credit, while younger people will see an income gain.
  • Some of the welfare reforms, such as the household benefit cap, are likely to have a disproportionate impact on some Black and ethnic minority claimants because of the characteristics of some of these households, such as the tendency for family size to be larger.    

Communities & Tackling Poverty Minister Jeff Cuthbert said:

“These findings once again lay bare the very real impact that changes to the welfare system will have on people across Wales. Make no mistake, the path the UK Government are taking will hit people hard, with women losing the most and putting further pressure on some of our most vulnerable people.

“Those who care for disabled loved ones could also see a cut in the money they get to help them do so such an important job. These welfare reforms are going to be tough for many and the Welsh Government will do all it can to help people through these turbulent times.”

Previous research has suggested that the welfare changes could take £1 billon out of the Welsh economy.

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