There is little doubt that the government’s welfare reforms are going
to shake things up a great deal. Many tenants in receipt of Housing
Benefit will see their payments fall as the ‘bedroom tax’ takes
effect and others stand to lose a large amount from disability and
incapacity benefits. Unfortunately, some areas are likely to be
harder hit than others.
Research into the effect of government welfare reforms
Research carried out by Sheffield Hallam University indicates that
some areas of the UK will experience far greater financial loss than
others. Blackpool, the Las Vegas of the north, has the dubious
privilege of being identified as the place where the welfare reforms
will hit the hardest. Researchers estimate that every adult of
working age living in the town will be around £900 per year worse off
in their benefit income. Many deprived seaside towns and older
industrial heartlands will also soon be feeling the effects, as will
some of the poorer boroughs in London. Other parts of the UK should
come off relatively unscathed. These include the southeast and many
parts of London.
Wider effect on the economy
The researchers also claim that an estimated £19 billion per year
will be lost from the economy as a result of the welfare reforms,
thanks to a knock on effect as households can no longer afford to
spend as much in the shops and other local businesses.
Widening the gap
As a consequence of welfare reforms, the research team believe that
the gap between the prosperous southeast and many parts of northern
England is likely to widen since the more deprived the area, the more
the residents will be affected.
