Almost a quarter of people in Wales trapped in poverty amid rising living costs and cuts to benefits

Despite drop in unemployment, thousands of Welsh people have been locked out of country's economic success, shows study

Terraced homes in the Rhondda Valley, south Wales. Poverty is affecting families with members in and out of work, the Joseph Rowntree Foundation said (Rex)

Almost a quarter of people in Wales are trapped in poverty as levels of deprivation rise among some of the country’s most vulnerable groups, a new report shows.

Rising living costs, especially housing costs, combined with cuts to working age benefits and poor quality jobs, is leading to an increased risk of living in poverty for families both in and out of work, according to research by the Joseph Rowntree Foundation.

The study shows that 710,000 people in Wales are now living in relative poverty – meaning their household whose income, after housing costs, is less than 60 per cent of median income. This figure includes 185,000 children, 405,000 working-age adults and 120,000 pensioners, making Wales the most poverty-stricken nation in the UK.

In the last 20 years, Wales has succeeded in reducing unemployment and radically improving adult skills – both areas in which it has been lagging behind other parts of the union.

But the report reveals that thousands of people are locked out from this economic success, with the risk of poverty rising for people in working families as well as those in workless families at a time of pressure on public spending, welfare reform and economic uncertainty.

Campbell Robb, chief executive of the Joseph Rowntree Foundation said “low-paid” and “unstable” jobs, coupled with rising living costs and insufficient benefits, meant many people in Wales were “locked in a daily struggle to make ends meet”.

He added: “Poverty restricts the choices people can make, leaving families in impossible situations like choosing either to heat their home or pay their rent.

“We urge politicians in Cardiff Bay and Westminster to work with businesses to redesign the job and housing markets so they work better for those people living in the most deprived areas of Wales.

“Loosening the grip of poverty on the lives of low-income families is crucial to the success of the Welsh Government’s prosperity agenda. Change is possible.”

Victoria Winckler, director of Welsh charity the Bevan Foundation said the ”stress and hardship” of not having enough to live on was “blighting” people’s lives, whether they’re children or pensioners, and is costing the public purse.

“The Welsh Government have made a very welcome commitment to ‘prosperity for all’, so we hope that they will take steps to make it a reality for the 700,000 people in poverty today”, she added.

The JRF is calling on the Welsh Government to ensure the economy and markets work better for low-income families in the most deprived areas of the country by working with businesses to create more and better jobs and improving the prospects of the next generation by closing the educational attainment gap.

It also urges Welsh ministers to reduce costs by building more affordable homes and ensuring high-quality and affordable childcare is available so more people can balance care and work.

The Welsh Government has been contacted for comment.