Universal credit claims in the UK hit a record monthly level in the early weeks of lockdown, with 1.5 million claims made between 13 March and 9 April, according to official figures from the Department for Work and Pensions (DWP).
The data, released alongside separate figures showing a surge in unemployment benefit claims in April, reveals that as of 9 April, a total of 4.2 million people were receiving universal credit, a rise of 1.2 million in a single month. The DWP stated that the number of people on universal credit had increased by 40% due to the coronavirus pandemic.
Universal credit, which replaced six other benefits including jobseeker's allowance and housing benefit, is designed for working-age people. Many claimants are in work but on low incomes, while others have lost their jobs. All regions saw an increase in claims, with the north west of England having the largest proportion of claimants by 9 April.
Polly Neate, chief executive of housing charity Shelter, warned that the surge in benefit applications and impending job losses indicate that Covid-19 will send shockwaves through the economy. She highlighted that people paying average rents face huge shortfalls and risk eviction when the government ban lifts.
Copywriter Jon Fitzgerald, who lost work due to the pandemic, applied for universal credit but was rejected due to his savings. His tax credits were not reinstated, leaving him without financial support. He urged others to check eligibility before applying to avoid being left worse off.
