New Ministerial portfolio brings together:

Tackling Poverty; Welfare Reform Equality and equal opportunities; Financial Inclusion, Digital Inclusion and advice services; Communities First; Third Sector Children, Young People and Families Sustainable Development

These areas involve all parts of the Welsh Government

Communities and Tackling Poverty

The Impact of Welfare Reform in Wales

•Welfare Reform Ministerial Task & Finish Group has commissioned research on likely impact of welfare reform in Wales

•First report (February 2012) drew on evidence from the Institute for Fiscal Studies (IFS) that was published in summer 2011.

“the poorest households with children are estimated to lose the largest proportion of their income as a result of the tax and benefit changes. In particular, non-working lone parents and workless couples with children are expected to suffer a disproportionate financial hit. Families with children aged under five and families with more than two children will also be particularly badly affected.”

Analysis continued…

• Second stage report (published February 2013) looks at the cumulative impact of the reforms to the welfare system alone.

• £590 million less in welfare payments in Wales 2014-15• overall impact on employment  is predicted to be, at best, very

modest and will depend on wider economic conditions• initial assessment of implications for public services – housing,

social care, health, funding for advice services…

• Stage 3 report will look specifically at the equality impact of the reforms and is due to be finalised in July 2013

Welfare reform and gender

Benefits are the same for women and men in the same circumstances

…but women are still likely to lose most / gain least and be most affected by the reforms:

90% of non working lone parents are female70% of claimants subject to conditionality

requirements are expected to be female60% of claimants affected by the benefit cap are

expected to be female

A complex picture…

• Universal Credit is expected to increase incentives for lone parents to start work, but there will be a need to weigh up changes to tax credits and childcare subsidy

• For lone parents in work, the incentives for them to work more hours will be significantly increased (provided they can find the opportunity to work more hours, find childcare etc)

• For “second earners”, on the one hand the benefits picture seems to reduce the incentive for them to work and tax relief for childcare is limited in its extent

• Fewer disability payments will also mean fewer carers’ allowances

• The “how” is important too: single, monthly payments in arrears to each household: implications?

Learning from other research

Bevan Foundation Report Women, Work and the Recession in Wales Feb 2013

• Women are continuing to lose jobs• Women in occupations at the bottom of the labour market have borne the

brunt of job losses

WENWales Report Welfare Reforms: The Effect on Women In Wales Feb 2013

• disruption and fundamental changes for women…at a time of rising unemployment and economic insecurity.

Chwarae Teg Report: A study of women’s roles in the Welsh workforce April 2013

• Inequality outside the workplace continues to shape inequality within• Affordable and accessible childcare needs to be more available

Tackling Poverty Action Plan: 3 themes

Preventing poverty• Early Years matter – good parenting; adequate nutrition; positive

learning experiences leading to better educational attainment.

Helping people into work• Employment offers a high level of protection against poverty, and

particularly against deep and persistent poverty.

Mitigating the impact of poverty• Welfare reforms add to the picture: may incentivise some people

into work but some people will be hit hard• Recent developments: advice services and credit unions.

Helping people into

work

Mitigating the impact of poverty

Preventing Poverty Tackling

Poverty

Welsh Government actions include:

• Advisory Services• Communities First• Energy efficiency programmes: Arbed & Nest • Free travel for older and disabled people• Homelessness Grant• Getting people online

Welsh Government actions include:

• Work on helping disengaged young people into work or training •Education Maintenance Allowance•Apprenticeship programmes• Community Benefits to create local Jobs• European Structural Funds

Welsh Government actions include:

• Maternity Strategy• Flying Start• Team Around the Family• Integrated Family Support Service• Pupil Deprivation Grant

Strategic Equality Plan

• The Welsh Government’s Strategic Equality Plan dovetails with the Tackling Poverty Action Plan through its focus on the root causes of poverty

• Objectives in the Strategic Equality Plan include

development of stronger advice services; tackling the gender, disability and ethnicity pay gaps; a focus on increasing the affordability and availability of

childcare; helping 16-24 year olds who are NEET into jobs and helping disabled people to live independently.

• Equality issues are embedded in our thinking about poverty

Equality Impact Assessments

• Wales remains committed to assessing equality impacts in order to ensure a strong future for the people of Wales.

• Publication of Equality Impact Assessments on the Welsh Government Website.

• The Welsh Government was the first administration in the UK to publish an Equality Impact Assessment alongside its budget.

• The assessment of our spending decisions is even more critical in these times of austerity.

• To support and strengthen our position the Welsh Government has encouraged and welcomed improvements to our EIA process including:

- the EHRC’s independent Appreciative Inquiry into our EIA process- and the Establishment of the Budget Advisory Group for Equality (BAGE)

To conclude – some suggestions

• Tackling Poverty Action Plan, linked with Strategic Equality Plan, provides strategic focus. Refresh of the Tackling Poverty plan due next month.

• “Resilient Communities” theme emerging – a focus on how well networked our programmes and organisations are, to support people and families.

• It’s about mitigation but also about helping people into work and preventing poverty now and for future generations.