Astonishingly, the number of claimants is now greater than during the Covid pandemic-induced economic closure.

Britain’s cost of living crisis has pushed the number of individuals claiming Universal Credit to all-time highs. 

The Department for Work and Pensions reports that more people were receiving the benefit than at the height of the Covid pandemic when job losses and wage cuts caused by the economic closure compelled millions more individuals to file a claim.

In July 2023, according to new data for the UK (England, Scotland, and Wales) released on August 15th, 6,1 million persons were receiving Universal Credit. This is an all-time high, surpassing the benchmark of 6 million claims set in March 2021, when pre-pandemic levels doubled.

In addition, the number of recipients of Universal Credit who are not required to work has increased, accounting for 2.1 million of the total. This includes those who have a limited capacity to work, are over the age of State Pension eligibility, are the primary carer for a child under one, or care for a severely disabled person for at least 35 hours per week. 

This number has increased as more individuals have transitioned from Employment and Support Allowance to Universal Credit.

1,400,000 are preparing to return to work, and 100,000 are in the planning for work-phase, as reported by ChronicleLive.

Universal Credit is available to both employed and unemployed individuals, and as of June 2023, 2,3 million employed individuals were claiming the benefit. This represents 38 per cent of all benefit recipients at the time, which has remained stable since the beginning of the year.

According to the statistics, 57% of Universal Credit recipients are female, and the average age of claimants is barely increasing. It is now 38, an increase of one year from the previous year.

The average Universal Credit payment provided to various claim groups is as follows:

  • Married couples with children – £1,140
  • Individuals with children – £1,140
  • Couple without dependents – £800
  • Single without dependents – £630

The DWP explained: “Universal Credit is a single payment made to each household to assist low-income or unemployed individuals with living expenses. It is superseding six benefits that are commonly known as legacy benefits.

Universal Credit incorporates support for housing expenses, children, and childcare costs. It also assists those whose disability, health condition, or caregiving responsibilities prevent them from working.

“Payments are contingent on completing certain work-related activities based on the outcome of the claimant assessment. Payment amounts can be reduced for various reasons, including sanctions, debt repayment, elimination of spare room subsidy, and earnings above the work allowance taper.”

“The amount of Universal Credit to which a household is entitled is determined by the standard allowance and any additional entitlements, such as housing or child care, plus any additional amounts, such as an advance or mortgage interest payment.”

“As of April 2023, benefit and pension rates have increased, so the amount a household is entitled to based on the standard allowance and any additional entitlements has also increased. If a household is sanctioned, limited by the benefit limitation, or earns more than the threshold, the taper rate may reduce the amount paid to that household.”

The Universal Credit taper rate reduces benefit payments by 55p for every £1 earned in salaries above the work allowance. 

Individuals are eligible for a work allowance if they (and/or their companion) have parental responsibilities or limited work capabilities. In such instances, those whose housing costs are covered have a work allowance of £379, allowing them to retain this benefit amount before the 55p deduction is applied to the remainder. 

The employment allowance for those without housing costs covered by Universal Credit is £631.