To answer the original question, yes there is an area in England where Welsh is spoken by the local population, and that is the area around Oswestry, or Croesoswallt in the Welsh.
Also in the 19th century Welsh was spoken in many areas such as Herefordshire near the border.
Of corse in the early Dark ages Brythoneg and early Welsh was spoken extensively in the ares not yet conquored by the Saxons ie the north and the west. There are 2000 place names within England that originated whole or in part from Brythoneg or early Welsh. For example, in Derbyshire: Crich, Pentrich, Mam Tor, Ecclesbourne, the Chevin (a hill near Derby) rivers Derwent, Dove, Wye and Trent.
Generally the closer you get to wales the more of them but there are examples in the East as well such as Dover from dyfr meaning water.
Despite its distractors Welsh is a living vibrant language, and in terms of numbers it is growing with 80,000 more speakers registering at the most recent census compared with the previous one.
Hir oes i’r Gymraeg, bydded i’r hen iaith barhau!
Jon Sais