Sharp rise in claims for Universal Credit

Nearly one in 12 people in Bath and North East Somerset is now on Universal Credit, as MPS call for reforms in response to the coronavirus pandemic.

The number of people on Universal Credit has soared over the last few months, with 13,349 people in Bath and North East Somerset claiming through the system as of July.

That is a huge increase compared to the 7,584 people who were claiming in March, when lockdown began, and means 8 per cent of people in the area aged 16 and over are now on Universal Credit.

Debbie Abrahams, chair of the All-party Parliamentary Group (APPG) on Universal Credit, said: “The coronavirus pandemic saw a huge and sudden increase in claimants.

“As the Furlough Scheme comes to an end in the next few weeks, this is likely to increase even further. It is more important than ever that we make sure that Universal Credit is better able to meet the needs of claimants and provide the timely financial support they need while they work to get another job or start a business.

“Becoming a UC claimant should not be associated with debt, poverty, homelessness or illness. But for too many it is. Our social security system is not fit for purpose, it is not the safety net that it’s meant to be.

“Evidence from charities, claimants and academics have come together to develop pragmatic policies to improve Universal Credit.

“People need to get the help they need; when they need it.”

The APPG is calling on the Government to provide enhanced support for claimants, and to fix what they see as longer term, structural issues with the system. They have welcomed the temporary measures the Government put in place to bolster social security during the pandemic.

However, they would like to see these policies continue to support claimants as the economic consequences of the coronavirus continue.

They want to see the £20 per week uplift to Universal Standard Allowance to be maintained permanently, arguing that even prior to coronavirus claimants were struggling to get by and stay on top of bills, after years of welfare cuts and freezes.

They also want the temporarily increased Local Housing Allowance (LHA) rates to be permanent, to prevent families facing the risk of homelessness, and for the ban on financial sanctions to be maintained.

Nationally, there were 5.6 million people claiming Universal Credit as of July - up from 3.0 million in March, which works out as 11 per cent of people aged 16 and over.

A government spokesperson said: “We are wholly committed to supporting the lowest paid families and our policies, in particular those related to the pandemic, are under constant review. No one will be sanctioned unless they fail to meet the agreed conditions of their claimant commitment without good reason.”