Study shows Hyndburn losing £35m per year under welfare reforms

Recent research by Sheffield Hallam University that documents the impact of the welfare reforms on local areas across the whole of Great Britain. Work carried out by Christina Beatty and Steve Fothergill show that when the welfare reforms have come into full effect they will take almost £19bn a year out of the economy. This is equivalent to around £470 a year for every adult of working age in the country.

Hyndburn has been identified as one of the areas that have been hit hardest losing £35 million per year which equates on average to £676 per working age adult per year. This has ranked Hyndburn 16th worst hit area, with Burnley 12th and Blackpool 1st. The financial impacts in Hyndburn of benefit reforms are detailed below:

Housing Benefit: Local Housing Allowance:

• 3,200 households affected
• £3million estimated loss per year
• On average a loss of £58 per working age adult

Housing Benefit: Under occupation (bedroom tax):

• 900 households
• £0.7 million estimated loss per year
• On average a loss of £13 per working age adult

Disability Living Allowance:

• 900 individuals
• £3 million estimated loss per year
• On average a loss of £55 per working age adult

Incapacity Benefits:

• 2700 individuals affected
• £9 million estimated loss per year
• On average a loss of £185 per working age adult

Child Benefit:

• 11,200 households affected
• £4 million estimated loss per year
• On average a loss of £73 per working age adult

Tax credits:

• 8,400 households affected
• £7 million estimated loss per year
• On average a loss of £133 per working age adult

There are also additional impacts to Non-dependent deductions, Household benefit cap and Council tax benefit.