A LEADING Welsh poverty think tank has warned that Wales faces an imminent housing crisis unless immediate action is taken to support households affected by the pandemic.  

The Bevan Foundation has warned that not everybody has been in a position to weather the pandemic’s storm.

Their warning points to polling gathered by YouGov that reveals the extent of the impact that the pandemic has had on Wales.

The data shows that one in ten households in Wales live in insecure housing, with 80,000 already told they will have to find a new home.

The warning comes despite action taken by both the UK and Welsh Governments to protect people’s homes, with the think tank saying much more needs to be done.

Dr Steffan Evans of the Bevan Foundation said: “Everyone deserves to live in a warm and secure home, but our latest research shows that too many people are denied this.

“Both the UK and Welsh Governments did the right thing at the outset of the pandemic by protecting people’s homes and supporting homeless people. Unless immediate action is taken all that good work will be undone.”

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There are concerns that the situation could deteriorate further. Some of the temporary protections that have supported people on the lowest incomes over the course of the pandemic are coming to an end, despite an uncertain economic landscape remaining in place.

The UK Government funded furlough scheme is due to come to an end in October, while a £20 per week uplift to Universal Credit may also be reduced later this year.

While there are signs that the Welsh and UK economies are beginning to recover as restrictions are eased, low-income households are still not feeling the benefits.

More than one in five households with a net income of less than £20,000 saw their income drop between January and May 2021.

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The foundation has also warned that housing is not the only cost that low-income households have struggled to meet over recent months.

Thousands of Welsh households have had to cut back on everyday items such as heating and food.

Around 10 per cent have fallen behind on bill paying and 17 per cent are now borrowing money to pay bills.

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Dr Steffan Evans continued: “The past 15 months have been difficult for all of us, but they have been especially difficult for low-income households who have been far more likely to have had to cut back on everyday items or to have fallen into debt.

“More than one in five households are already expecting to have to cut back further on their day-day spending over the next three months. Pulling support away from these households as restrictions are eased risks making life even harder.”

In response to the report, a spokesperson for the Welsh Government said: “We share the concerns of the Bevan Foundation that the sudden withdrawal of UK Government Covid support schemes, such as furlough and the top-up for Universal Credit, will fall on those who can least afford it.

"Previous research undertaken into the UK Government’s programme of tax and welfare reforms predicted that levels of poverty would rise as a result.

“The key levers for tackling poverty – powers over the tax and welfare systems – sit with the UK Government, but we are doing everything we can to reduce the impact of poverty and support those living in poverty.

“This financial year, we have made more than £9m available to help people get the advice they need to resolve problems with their welfare benefits, housing and debts.

"This alongside our support for a more generous ‘social wage’ – through our Childcare Offer, our Council Tax Reduction Scheme, our Warm Homes Programme and Free Prescriptions - has the effect of leaving more money in the pockets of Welsh citizens.”

  • This article originally appeared on our sister site The National.