Official figures have revealed a dramatic surge in the number of individuals claiming Universal Credit across Britain during 2025, with the annual increase exceeding one million claimants for the first time since the peak of the coronavirus pandemic.
Record Annual Increase in Claimant Numbers
According to newly released provisional data from the Department for Work and Pensions, the total number of Universal Credit claimants stood at approximately 8.40 million in December 2025. This represents a significant jump from the 7.36 million recorded in December 2024, marking an increase of 1,044,865 claimants over the twelve-month period.
This substantial rise slightly surpasses the increase observed between 2023 and 2024, when 1,044,063 additional claimants were registered. Notably, the 2025 increase represents the largest annual end-of-year growth in Universal Credit claimants since the total leapt dramatically from 2.73 million in December 2019 to 5.88 million in December 2020.
Drivers Behind the Significant Surge
The earlier pandemic-era spike was primarily driven by a temporary uplift in the standard Universal Credit allowance, implemented as part of a comprehensive support package between April 2020 and October 2021. In contrast, the 2025 increase has been attributed almost entirely to growth among claimants who are not required to seek work.
This category includes individuals in full-time education, those over the state pension age, parents with a child under one year old, and people considered to have no immediate prospect of employment. The number of claimants not required to work rose sharply from 3.06 million in December 2024 to 4.17 million in December 2025.
Conversely, the number of claimants who are in work experienced a slight decline during the same period, falling from 2.25 million to 2.19 million.
Political Context and Government Response
This substantial increase in welfare claimants emerges against a backdrop of rising government expenditure on benefits and ongoing public criticism of tax increases outlined in Chancellor Rachel Reeves's recent budget, which has been colloquially dubbed the 'Benefits Street' Budget.
Prime Minister Sir Keir Starmer has previously expressed concern about individuals being effectively 'written off' while receiving benefits, potentially becoming trapped in what he describes as 'a cycle of worklessness and dependency'.
The Labour government has stated that it inherited what it characterises as a broken welfare system and an unsustainable benefits bill from the previous Conservative administration. In response, ministers have implemented reforms including tighter eligibility rules for Universal Credit claims.
Transition from Legacy Benefits and Future Plans
The government has confirmed that the nationwide rollout of Universal Credit should be completed during 2026, with any remaining claimants still receiving older legacy benefits scheduled to be transitioned to the modernised system by March of that year.
Universal Credit is designed as a single payment to assist with living costs, available both to people in work on low incomes and those who are out of work or unable to work due to health conditions or caring responsibilities.
A Department for Work and Pensions spokesperson commented: 'This increase comes as people are moving off legacy benefits– a transition we inherited from the previous government, alongside a system with the wrong incentives that writes people off.'
'This government is determined to fix this. That's why we're removing the financial incentives in Universal Credit that encourage inactivity, and as part of our wider plans to Get Britain Working we have redeployed 1,000 work coaches to help thousands of sick and disabled people who were previously left without contact for years.'
The spokesperson further noted that approximately 750,000 people have submitted claims since July 2024, when vulnerable Employment and Support Allowance claimants began transitioning to the updated Universal Credit system.
Policy Rebalancing and Economic Implications
The government has announced plans for a 'rebalancing' of Universal Credit from April, aimed at reducing the disparity between payments for unemployed individuals compared to those with long-term sickness. This policy adjustment forms part of broader efforts to reform the welfare system while managing escalating costs.
This significant increase in claimant numbers highlights ongoing challenges within Britain's social security framework, occurring alongside economic pressures including persistent inflation and constrained public finances. The data underscores the complex interplay between welfare policy, employment trends, and government expenditure in the current economic climate.
