Much reduced welfare! (3)
I believe the answer is:
far
'much' is the definition.
(I've seen this in another clue)
'reduced welfare' is the wordplay.
'reduced' says the answer is hidden in the clue (reducing the letters in the clue shows the answer).
'FAR' is hidden in the letters of 'welfare'.
(Other definitions for far that I've seen before include "Remote" , "Very much" , "Distant" , "At a great distance way" , "A long, long way to go" .)