27-05-2025
- Business
- South Wales Argus
Senedd committee on 'deeply concerning' welfare cuts
The Senedd's equality committee urged Liz Kendall, the UK work and pensions secretary, to address barriers disabled people face in accessing employment before reforming welfare.
Ms Kendall announced the biggest shake-up to the welfare system in a generation in March, including plans to tighten up the eligibility criteria for personal independence payment (Pip).
In a letter to UK ministers, Jenny Rathbone, the Labour chair of the equality committee, wrote: 'We have been contacted by individuals and stakeholders expressing deep concern about the proposed changes and the impact they will have on local economies.
'We share these concerns and feel strongly that the Department for Work and Pensions (DWP) – alongside employers and other tiers of government – must work much harder to get their houses in order before implementing reform.
'We urge the [UK] Government to acknowledge these concerns and keep the people affected at the heart of its decision-making.'
In March, her committee concluded an inquiry into the disability employment gap, warning that too many people face physical and institutional barriers to the world of work.
The gap, which is the difference of employment rates between disabled and non-disabled people, stood at 30 per cent in 2023/24 and has consistently been higher than elsewhere in Britain.
As many as 275,000 people in Wales receive Pip and 110,000 who receive universal credit have limited capability for work-related activity, according to the Bevan Foundation.
Senedd members on the equality committee wrote: 'The UK Government intends to introduce these changes at speed with changes to Pip and universal credit scheduled for August and November 2026 respectively."
The committee's letter acknowledged the case for reform, with a 45 per cent increase in the number of people claiming health-related benefits since 2018/19.
Impact assessments published by the UK Government – which were carried out on an England-and-Wales basis – were inadequate and lacked detail, according to the letter.
Warning cuts will have a disproportionate impact on Wales, the letter stated: 'Policy in Practice suggests that they will hit Wales and north-east England the hardest. It estimates that nearly 190,000 people in Wales will be affected by the reforms, with a potential financial impact of £470m.
'According to their analysis, four of the 10 worst-affected local authorities in Great Britain are in Wales: Blaenau Gwent, Merthyr Tydfil, Neath Port Talbot and Caerphilly."
