Counting the costs of welfare reforms

A study carried out for Oxford City Council by independent think tank The Centre for Economic and Social Inclusion said 14,950 households claiming benefits in Oxford were £1,594 worse off every year. Of these households, 60 per cent were in employment.

It said changes to tax credits, the one per cent cap on benefit increases and changes to housing allowance were responsible for most of the impact.

Lone parents and the disabled were said to be the worst affected and interviews revealed people skipping meals or not heating their homes to save money.

And stress and anxiety caused by pressure on incomes were also having “a knock-on effect” on people’s health, particularly those who already had conditions, the report said.

Today some people will also start claiming Universal Credit if they meet certain criteria, as part of the government’s attempts to reform welfare.

Stephanie Ballard

Stephanie Ballard, of Rivermead Road, Oxford, said her family had been under increasing pressure since moving into privately rented accommodation in 2009.

Her husband Barry, 29, works as a caretaker at Rose Hill Primary School, but the couple still need working tax credit and child tax credit, as well as small payments of housing benefit and council tax benefit, to help get by.

They have three children, Max, Lacey and Josh.

Mrs Ballard, 27, said: “Our living costs like rent seem to keep increasing but our benefits stay the same and that is where we have really been hit.

“We are just about making ends meet, so any further cuts would really concern us.

“When we first moved in we did not seem to have many issues, but now we are really having to rake things together.”

Labour councillor Susan Brown, Oxford City Council executive board member for customer services and social inclusion, said the perception that benefit claimants didn’t work was a myth.

She said: “What the report drew our attention to is that we had not previously targeted many of the people in the private rent sector who were not aware of the support they could get.”

The report said the impact of welfare reforms would “continue to grow” and the costs of living in Oxford, like rents, would outpace increases to benefits.

In interviews it emerged that some who had their benefits stopped through ‘sanctions’ – for failing to meet conditions such as attending Jobcentre meetings – were using child benefit or child tax credit to pay for food and utility bills.

Barton resident Safia Baker, 45 – a full-time carer for her husband and son – said her family had not been badly affected by welfare reforms, but said that could change if child benefit and child tax credit were reduced.

The mother-of-two, said: “The cuts are being made in the wrong places.”

Conservative parliamentary candidate for Oxford West and Abingdon, Nicola Blackwood, said a greater focus should be placed on getting people into work and training schemes.

She said: “We must have a generous welfare system to protect us from life’s blows, but the first weapon against poverty is a well paid job.

“I have voted consistently to cut taxes for the lowest paid, as well as backing calls for more affordable housing.”

Liberal Democrat candidate for Oxford East Alasdair Murray said: “This one-sided report entirely ignores positive changes, especially the cut in income tax which has taken thousands of low earners in Oxford out of tax altogether and is worth up to £800 a year.”

But Green candidate for Oxford East Ann Duncan said: “The report shows that cuts have had a devastating effect on the poorest within the city.”

Sally Copley, Labour candidate for Oxford West and Abingdon, added: “These aren’t just numbers, but real people who struggle to make ends meet. We need to see a different approach to supporting the most vulnerable.”