The Spring Statement’s Impact: Wales, Inequality, and Substance Use

One of the most pressing questions in Wales today is whether the UK truly serves the needs of the Welsh people. All too often, Wales feels overlooked by the UK Government, treated as a region rather than a nation, with its own identity, economy, and social challenges.

The recent Spring Statement has only widened that gap. While outlining a vision for growth centred on the South East of England, it offers little in the way of targeted support for Wales, even though our communities continue to experience high levels of deprivation and poor health outcomes. For organisations like Kaleidoscope, this lack of focus is deeply troubling.

Growth, But Not for All

The UK government’s plans to boost the area between Cambridge and Oxford, driving growth inspired by Silicon Valley, may sound impressive, but for those of us working in Welsh communities, it’s hard to see how this brings tangible benefits. Promises of knock-on effects for Wales are vague at best. No one has explained how infrastructure projects like HS2 (high-speed rail project) will help struggling towns in Wales.

At the same time, proposed changes to Personal Independence Payments (PIP) and other disability benefits will hit Wales especially hard. With 11% of working-age adults here receiving PIP, compared to 7% in England, these cuts are not just numbers on a spreadsheet. They are a real threat to the well-being of the vulnerable people we support every day.

Struggling Services, Shrinking Support

The impact of these changes won’t just be felt by individuals; it will ripple across local economies. Lower-income households tend to spend locally, and, when that income disappears, high streets suffer. The lack of a Wales-specific impact assessment is a missed opportunity to understand and mitigate these consequences.

We also know that cuts to daily living allowances can destabilise people who are working hard to turn their lives around, particularly those in recovery, or moving away from offending behaviour. At the same time, third-sector services like ours are already under intense pressure. With contracts failing to keep pace with inflation, and a National Insurance increase not matched by additional funding, our ability to deliver support is at risk.

These cuts will also disproportionately impact children, and the long-term damage caused by poverty can lead to outcomes such as problematic drug and alcohol use in later life. Save the Children UK recently highlighted that the changes could push 50,000 more children into poverty by the end of this Parliament. The long-term consequences, including mental health issues and increased risk of problematic substance use, are well documented.

A Welsh Way Forward

There is a different approach in Wales. Across political parties, there is agreement that problematic drug and alcohol use should be treated as a health and social issue, not just a criminal one. But if policing remains under Westminster control, our ability to implement that vision is limited.

If policing were devolved, Wales could invest in diversion and harm reduction, ensuring people get the help they need, rather than ending up in prison. This is not wishful thinking; it is aligned with the views of senior police leaders across Wales. Yet current structures, including four Police and Crime Commissioners reporting to the Home Office, make this difficult.

We have seen this limitation in action. In South Wales, pilot programmes designed to support individuals who use crack cocaine, and individuals who are homeless and use intravenous drugs, have been blocked by the Home Office, despite their potential to save lives and reduce harm. Local expertise and innovation are being stifled by distant decision-makers.

Conclusion

The Spring Statement does little to address the unique economic and social challenges facing Wales. Instead, it reinforces a centralised approach that risks pushing more people into poverty and instability. For organisations like Kaleidoscope, the consequences are already visible, and they are deeply concerning.

If we want to reduce inequality, improve mental health, and respond to substance use effectively, we need decisions that reflect our specific context. Until Wales has the powers to shape its own future, the people we support will continue to bear the brunt of policies designed for somewhere else.