Austerity Britain - How are we faring in Enfield and Haringey?

The impact of government’s radical changes to Britain’s benefit system has been covered extensively in the national press and media in recent weeks. Whilst the changes will vary widely between different regions of the UK there are still significant local differences within London when you look at figures for our two local authority areas. Enfield and Haringey.

In a refreshing change from much recent hysterical and ill-informed media comment, the Financial Times has, in partnership with Sheffield Hallam University, measured the impact of the welfare cuts from 2010 to 2014-15 on individual local authorities. Their calculations were based on the local caseload of claimants and official impact assessments of the likely losers. investigated the impact across the UK. The findings are presented in a dispassionate and factual breakdown; detailing the impact of government welfare reform on each local authority across the UK via an interactive map of Great Britain.

Figures for our two local boroughs make interesting reading particularly the score for “Deprivation”. In Haringey, 56.3% of neighbourhoods are among the poorest 20% in Britain; the figure for Enfield is, 28.7%. The average for local authorities across Great Britain is 15.1%.

Different policy changes have had a different impact on the populations of Enfield and of Haringey when the affects of specific changes are considered in detail. For example the much discussed "under occupancy", or “bedroom tax” will affect 2,200 households in Enfield resulting in a loss of benefits (or a saving to government) of £2M per year. The same policy in Haringey affects 3,200 households to the tune of £3M per year. Whereas the household benefit cap will result in £9M being removed from 1860 households in Enfield –Haringey will see a cut of £5m affecting only 1,030 households.

It's hard to asses the real affects of austerity on specific individuals and households but the FT records that on aggregate the overall impact will be a loss of £136M per year in Enfield (£666 per working age adult) – and £115 in Haringey (£635 per working age adult).

Studies have shown that welfare payments – including pensions - tend to be spent locally, and in cash. Theis money circulates several times within a local economy benefitting more local traders than card or cheque transactions. So, as well as benefits claimants having a harder time, the whole North East London regional economy is facing a cut of 2.26 per cent in disposable income, or approximately one year of regional growth according to these FT figures.

It’s a fascinating – if ultimately depressing – analysis of the real impact of policy choices taken in Parliament, and well worth a read.

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