Universal Credit claimants have reached 8.4 million, the highest since the benefit was introduced in 2013, according to new figures from the Department for Work and Pensions. The number is up 700,000 from the same time last year.
The figures show that the number of working households is also falling, with the unemployment rate now at 4.9% and job vacancies at their lowest level in more than five years.
No Work Requirements Surge
Those in the "no work requirements" category have increased to more than half of all Universal Credit claimants, meaning they are not expected to look for a job. The number on Universal Credit with no work requirements has surged by 1 million in a year.
Universal Credit is a single monthly financial payment meant to help people of working age pay for living and housing costs. It is paid if you are out of work, unable to work, or on a low income, and replaced handouts including Housing Benefit, Child Tax Credit, and Jobseeker's Allowance.
Inflation and Energy Bills Rise
The rate of inflation hit 2.9% in July, meaning prices rose at the fastest pace in four months. Energy bills are now expected to hit their highest level since July 2023, with market analyst Cornwall Insight predicting the price cap will rise 4% from October. It means average bills will increase from £1,663 to £1,729.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Rising energy bills aren't welcome at the best of times, but with winter approaching, this latest hike will hit struggling households especially hard."
Benefits Spending Set to Top £407bn
Britain's benefits system, which already accounts for almost 25% of all government spending, is set to top more than £407bn by 2030. The figures show that 53% of the population are net takers from the state, with just 47% net contributors.
