Tuesday, April 17, 2018

Welsh Poverty

Efforts to tackle child poverty and low incomes in Wales are being "damaged" by UK government welfare and tax reforms.

An Equality and Human Rights Commission report estimates there could be 50,000 more Welsh children in poverty by 2021. It is estimated that around 200,000 children are currently living in poverty in Wales. This is broadly defined as living in a household where the income is less than 60% of the median income after housing costs are counted.

It estimates:
  • Households in Wales with three or more children will lose at least £900 a year on average by 2021-22 from the two-child limit on most benefits, tax credits and universal credit (UC) introduced in 2017
  • 20,000 more households - and 50,000 more children in Wales - could be in relative poverty following the reforms as a "best estimate"
  • But increases in child poverty for Wales and Scotland (around 8% for both countries) are forecast to be smaller than for England (just under 11%). It puts this down to the larger gap between rich and poor in England
  • Those in the second lowest income bracket are the worst hit, with a suggestion these households in Wales could lose more than £1,000 a year
  • Disabled people and single parents in Wales will be disproportionately affected.

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