‘Poverty costing the Government £3.6bn each year’

WIDESPREAD poverty in Wales – with 700,000 people or 23% of the population struggling to make ends meet – is costing the Welsh Government £3.6bn a year, according to a report published today.

This is equivalent to £1,150 for every person living in the country, and represents £1 in every £5 of spending on public services. Poverty also brings additional costs from lost tax revenues and costs to the social security system.

This week, the independent Joseph Rowntree Foundation launched the first comprehensive plan showing how to solve poverty in Wales by 2030.

Written with the Bevan Foundation, it sets out a vision of a country where no-one is ever destitute, fewer than one in 10 are in poverty at any one time and nobody is in poverty for more than two years.

Julia Unwin, chief executive of the Joseph Rowntree Foundation, said: “Poverty in Wales is holding back almost a quarter of the population, damaging the economy and affecting the next generation.

“This is unacceptable. The Welsh and UK Governments have an opportunity to end this damaging cycle and ensure that everyone in Wales has the chance of a decent and secure life.”

Dr Victoria Winckler, director of the Bevan Foundation, said: “These recommendations are a first because they are based on evidence of what works and are focused on the root causes of poverty, which lie in our economy, markets and public services.”

A Welsh Government spokeswoman said: “We are taking a cross-government approach to boosting prosperity and building more resilient communities, which is entirely consistent with the recommendations being made in today’s report.

“Employment in Wales is the highest on record and the number of children living in workless households is continuing to fall.

“However, as this report shows, there is still more to be done and we’re committed to rising to the challenge.

“We have big ambitions for Wales and its economy and we will continue to work hard to create and safeguard jobs.

“We are investing £111m next year alone to create 100,000 all-age apprenticeships, piloting a Better Jobs Closer to Home project to create employment and training hub in deprived areas, and developing a fresh approach to improving prosperity in the Valleys, driven by a new Ministerial taskforce.”

Read the report’s recommendations at: walesonline.co.uk