Welfare Cuts 'Will Widen North-South Divide'

People living in northern England will be hardest hit by the Government's welfare reforms, which will take nearly £19bn out of the economy every year.

Researchers say adults in Blackpool will lose an average of £910 a year each - more than anywhere else in Britain - because of changes to Housing Benefit, Disability Living Allowance and Child Benefit, as well as Tax Credit and Council Tax Benefit.

Former industrial areas including Middlesbrough, Liverpool and Glasgow will also be disproportionately affected.

However, wealthier areas, such as Cambridge, parts of Surrey and the Cotswolds, are expected to see the smallest financial losses.

Cambridge will be among the places least affected, researchers say

Westminster, with its high cost of living, will be the worst-affected London borough, with the average adult losing £820 in annual benefits.

Professor Steve Fothergill, of Sheffield Hallam's Centre for Regional Economic and Social Research, which led the study, said: "A key effect of the welfare reforms will be to widen the gaps in prosperity between the best and worst local economies across Britain.

"Our figures also show the coalition Government is presiding over national welfare reforms that will impact principally on individuals and communities outside its own political heartlands."

Professor Fothergill found that, on the whole, the more deprived the local authority, the greater the financial impact.

Former industrial towns such as Middlesbrough are likely to feel the pinch

Collectively, the North West, North East, Yorkshire and Humberside stand to lose £5.2bn a year in benefit income.

However, a spokesman for the Department for Work and Pensions said: "Around nine out of 10 working households will be better off by, on average, almost £300 a year as a result of changes to the tax and welfare system this month.

"Raising the personal allowance to £10,000, we will have lifted 2.7 million people out of income tax since 2010.

"Our welfare reforms, including reassessing people on incapacity benefit, will help people back into work, which will benefit the economy more than simply abandoning them to claim benefits year after year.

"These changes are essential to keep the benefits bill sustainable, so that we can continue to support people when they need it most across the UK."

Changes to Housing Benefit, Council Tax Benefit and Disability Living Allowance have already been made.

A benefit cap of £500 per week for a family and £350 for a single person will be introduced on April 15, while Universal Credit, which replaces a number of means-tested benefits, will be rolled out from October.

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