THE region’s young and disabled are being hit hardest by Government economic policies, critics claimed last night as figures revealed the potential impact of welfare reforms and highlighted a big rise in youth unemployment.

Researchers at Sheffield Hallam University say new rules could mean 60,000 North- East residents losing their incapacity benefit by 2014.

The Northern Echo: Table showing incapacity benefit claimants in February 2011 and the projected reduction by 2014.Of these, 35,000 people would be taken off benefits altogether and 20,000 would be moved on to jobseekers’ allowance, it is estimated.

According to researchers, the reforms – due to come into effect in April next year – will have the second biggest impact in Britain on Easington, County Durham, which could see nearly seven per cent of working-age adults – 4,200 people – no longer receiving the benefit.

Hartlepool could see five per cent of adults – 2,900 – losing the benefit.

Professor Steve Fothergill, co-author of the report, said the reduction was due to a tougher medical test and the more widespread application of means-testing – not widespread fraud.

It also did not mean recipients’ health problems and disabilities were “anything less than real”, he said, adding: “These reforms will impoverish vast numbers of households and cause untold distress in countless more.

“The incapacity benefit numbers need to be brought down, but this is not the way.”

The report will be released today at the same time as the Northern TUC reveals that every single North-East local authority area has seen youth unemployment increase in the past 12 months.

The two areas with the biggest rises in the number of young people claiming jobseeker’s allowance between September last year and September this year are both in the North-East.

Hartlepool has experienced a 3.5 percentage point increase and Darlington a 3.2 increase.

In contrast, North Yorkshire saw a 0.7 percentage point increase, while youth unemployment fell in some London boroughs.

Union leaders claimed the figures illustrated that the Government’s current approach to youth joblessness was “uneven, unfair and not working”.

“The Conservative-led Government is throttling the hopes of young people in the North-East,” said Northern TUC regional secretary Kevin Rowan.

Easington MP Grahame Morris said the legacy of heavy industry in the region meant many people suffered from long-term industrial disease and ill-health.

“At the same time as the Government is retrenching any support for jobs and growth in the North-East, it is quick to pull the carpet from underneath the sick, disabled and worse-off in society,” he added.

However, Employment Minister Chris Grayling defended the reforms.

He said “It’s clear that millions of people have been written off for years, left on incapacity benefit with no real support to get into work.

“That’s why we are retesting people to see if they have the capacity to work. Our changes will make sure those in genuine need get more support.”