Stoke-on-Trent Citizens’ Advice Bureau and the locally-based Brighter Futures self-help rehabilitation charity last week produced a report claiming cuts to Employment and Support Allowance alone will take £13 million out of their local economy.
The report says the proportion of people receiving either ESA or incapacity benefit in Stoke-on-Trent is disproportionately high at just under twice the national rate. Local Labour MP Tristram Hunt said the cuts were the equivalent of a major local employer going bust and making thousands jobless at once.
The two charities, endorsed by Mr Hunt, predicted that changes to housing benefit would lead to increased homelessness and a reduction in the number of private landlords in the area.
According to their research, 10 per cent of all people aged between 16 and 64 in Stoke-on-Trent are unemployed. Some 33,500 people of working age receive benefits – 22.7 per cent of the local population.
Of these, 10,392 either receive Job Seeker’s Allowance, or are single parents who do not need to be available for work. A total of 23,108 are unable to work because of illness or disability.
The city has 14,000 people in receipt of incapacity benefit, who will all be reassessed – potentially doubling the number of local people looking for work, say the report’s authors.
Proposals to change the benefit system also include introducing a maximum local housing allowance rate people can receive of £146.54 a week – up to now, an eligible family could claim £219.23 a week for a five-bedroom house.
Meanwhile, figures published by False Economy say 2,215 charities and voluntary groups have had funding cut by a minimum of 5 per cent or withdrawn entirely by 256 local councils forced to cut budgets. Birmingham City Council and 33 London councils have cut the most.
Organisations worst affected include 112 providing adult care, 142 elderly care providers, 382 children’s care groups and 151 disabled people’s organisations.
