What is welfare and why does it matter for Wales
By Laura Butler
Welfare is an important lifeline for people in Wales, supporting them during difficult times in their lives. It is a policy decided by Westminster, but it affects Wales in unique ways.
“I thought I’d be working. I was working. But then the baby came and childcare was more than rent and everything else just added up.”
Mother-of-three Jamie (not her real name) is 35 and from Aberdare. She had her third child just two years after the two-child benefit cap came into force. Like many parents, Jamie had expected to return to work and manage financially, but when her youngest was born, the reality of childcare costs quickly became overwhelming.
She found herself struggling to make ends meet, carefully budgeting every shop and every bill. Jamie’s biggest concern was her children.
“I don’t want them being written off because of their upbringing before they’ve even had a chance to get going.
“I want them to believe that they can be barristers or actors or football players or secret agents if that’s what they like, you know? I don’t want other people planting the seed that it’s not possible because of where they are or what benefit their mother claims.
“I don’t see myself as dependent on anyone. I see myself as someone who currently needs help. And I have learned to be okay with that.”
Why does welfare matter in Wales?
1 in 5 people in Wales live in poverty and in November 2025, 429,474 people claimed Universal Credit in Wales. But welfare spending is not a devolved power for the Welsh government.
There are a lot of misconceptions over what welfare means. Simply defined Welfare is a safety net for everyone living in the UK. It covers pensions, universal credit, careers allowance, disability benefits and housing benefits. Most people will rely on some part of the welfare system at some point in their lives, whether through illness, unemployment, caring responsibilities, or old age.
While the two-child benefit cap will be lifted in April this year, it won’t reverse the impact it has had on Jamie.
“It’s good. I’m glad. It’ll help but it’s not a miracle. It’ll make things easier but it doesn’t change the reality of how hard it is raising kids these days. And it won’t change the last eight years. I still worry about the impact it will have on them long term,” said Jamie.
Wales also faces particular challenges when it comes to disability and health. The poverty rate for disabled people in Wales is 32%, significantly higher than the national average. This is due to barriers to work and the additional costs associated with ill health.
How does welfare spending work?
The welfare budget is decided by the Westminster government giving the Welsh government little room for Welsh-focused policy. This means that targeting regional issues such as disabled individuals in poverty, can be difficult.
However, there are some provisions the Welsh government currently has at its disposal. These are called the Welsh benefit and The Bevan foundation, a think-tank set up to promote social policy on Wales in devolution, has identified seven important benefits.
These schemes do not replace the main benefits system, but they can help families struggling with the cost of living.
Many others, like Jamie, need help in the form of welfare. Their stories show that welfare is not about dependency, but about support during difficult periods of life. In Wales, where poverty, ill health, and low wages affect many communities, welfare remains a crucial part of the social safety net.
If you want to hear more about how welfare impacts Wales, head to our recent podcast here.