Report reveals welfare reform impact in North
OF COUNCIL
SHOCKING figures have revealed the full extent of the impact of controversial welfare reforms on Newcastle’s most vulnerable.
New data compiled by Newcastle City Council shows how food and fuel poverty has risen amid the introduction of government reforms, including universal credit and the bedroom tax.
There are now more than 17,000 benefit claimants in Newcastle that have been moved over to universal credit, which local authority bosses estimate will slash income from working age benefits in the city by almost £130m a year by 2022.
According to a council report:
■ The council handed out 2,255 payments totalling £1,169,857 in 2017/18 from a hardship fund to help people meet their housing costs – compared to just 203 Discretionary Housing Payments in 2010/11, with a total value of £88,563.
■ In 2017-18, West End Foodbank’s food parcels fed 21,000 residents, with half of all food parcels distributed going to households with children. The Lilia Centre also provided 5,800 hot meals.
■ Levels of fuel poverty in the North East are higher than average at 13.8%, and higher again in Newcastle at 14.4% – equating to approximately 17,268 city households.
■ As universal credit has been rolled out, Newcastle City Council’s Energy Services note an increase in the number of households who have run out of money and can’t afford to top up prepayment meters. There were 136 such reported cases in 2017/18, up from just 21 the year before.
■ During 2017-18 the council made 813 food awards – for Asda food delivery, Tesco food vouchers or dried food from a food store. During the same period, 1,014 awards were made for fuel vouchers for households that did not have gas or electricity.
■ As of April 30 this year, there were 2,991 households still affected by the bedroom tax in Newcastle, losing an average of £13.72 per week.
Coun Joyce McCarty, deputy leader of Newcastle City Council, said: “The Government’s welfare reforms are the biggest post-war change to the welfare state. These changes and the resulting loss of income are contributing to increased pressure on the council and its partners.
“In Newcastle, it is estimated that these changes will mean £129m of annual cuts to income arising from working-age benefits for up to 40,000 residents by 2023.
“This creates a further need to support residents, despite our own resources being pushed to the brink.
“By working with the voluntary sector we have helped thousands of residents access the benefits they deserve and offered the vital advice needed to reduce the risk of financial crisis and homelessness.”
The council report added that “the Government’s vision of ensuring that “work pays” is not always that straightforward” because of the complex barriers many vulnerable people need to overcome.
A DWP spokesman said: “We’re incentivising work and restoring fairness to the system, while supporting people from all backgrounds. That’s why we continue to spend over £90bn a year on support for those who need it, including those who are bringing up a family or on a low income.”
The Government announced last week that it would delay the nationwide roll-out of universal credit.
Coun Nick Cott, the city’s deputy Lib Dem opposition leader, said he shared the council’s concerns over poverty levels and the impact of universal credit.
He added that the council needs to develop its mechanism for working with voluntary groups across the city to tackle poverty.