Welfare reforms 'to hit councils'

A study into the impacts of recently introduced welfare reforms has said identified areas where they are likely to be "most strongly" to be felt.

The Local Government Association commissioned report said:

"The impacts of the reforms are likely to be most strongly felt in areas with the highest dependence on benefit - the North East, parts of London and a swathe of coastal towns and cities including Thanet, Tendring, Great Yarmouth, Scarborough and Torbay."

Read: Study reveals places set to be worst hit by welfare reforms

A study carried out by the Centre for Economic and Social Inclusion, into the impacts of the Government's radical reform of the welfare system found:

• The income of households claiming benefit will be an estimated £1,165 a year, or £31 a week, lower in 2015/16 as a result of reforms excluding the Universal Credit.
• the effect of housing benefit changes will affect 1.71 million households, 1.18 million of which contain no one in work.

• Overall 45% of working age households receive one of the main benefits or tax credits and 59% of welfare cuts will fall on households where someone has a job.
• The study also suggested that just 155,000 workless households may mitigate the effects by finding employment, and 115,000 by moving.

Councils could be forced to cut spending on roads and elderly care to support households losing out through the Government's welfare reforms, town hall chiefs warn.

A study estimated less than a quarter of the 1.18 million English workless households affected by housing benefit cuts would be able to mitigate the impact of the reforms by moving to a cheaper property or finding a job.

This could lead to councils having to pay out to support them, according to the report, commissioned by the Local Government Association

It also cast doubt on the effectiveness of the universal credit scheme, aimed at ensuring claimants are always better off working, suggesting it was "unlikely to significantly increase employment".