Big drop in benefits claims
THE number of people claiming Universal Credit (UC) in the city and county has fallen significantly, the Department for Work and Pensions has revealed.
In figures published by the JobCentre, every region of Leicestershire has seen at least a 20 per cent decrease in people claiming the benefits as the county gets back on its feet following the coronavirus lockdowns.
Millions across the UK started claiming the benefit at the beginning of the pandemic in March last year, which saw hours cut, jobs lost, and people placed on furlough with a 20 per cent cut to their wages before tax.
Affected in particular were those who work in the hospitality industry, with Covid-19 forcing bars, pubs, and restaurants to shut for months at a time – or, in Leicester’s case, over a year.
But with the country out of lockdown restrictions and reopen again, a significant number of people have now stopped claiming UC, with the government putting the change down to almost record-breaking levels of employment.
The number of people claiming benefits in Leicestershire as a whole dropped by 10,140 between August 2020 and August 2021, a 27 per cent decrease on the total number of claimants.
A large chunk of that was in the city, which has seen a drop of 3,807 claims between 2020 and 2021, equivalent to a 20.2 per cent decrease.
People stop being eligible for UC when they find a job that is not lowincome, so the figures display a large increase in those finding gainful employment compared with 2020.
Earlier this week, recruitment agencies reported a boom in jobs, with 2.29 million job vacancies, as well as major investment from companies in our region.
Companies such as Walkers, Aldi, and Amazon have been offering hundreds of new roles in Leicestershire, while there are recruitment drives and job opportunities at places such as Fosse Park and the new Coalville facility for supply chain firm Oakland International.
The government has welcomed the decrease in claimants, saying the safety net of UC helps encourage people into work and gain financial independence.
Mims Davies MP, the Minister for
Employment, said: “With unemployment falling once again, and another record rise in the number of workers on employer payrolls, it’s clear our plan to create, support and protect jobs is working.
“As we enter the next phase of recovery, the £500 million boost to our Plan for Jobs will continue to deliver more skills and opportunities for people up and down the country while crucially helping to fill vacancies across growing sectors as we push to build back better.”
David Rutley MP, the Minister for Welfare Delivery, said: “Universal Credit is a safety net for those most in need. With over a million vacancies available, it offers personal employment support through our multi-billion pound Plan for Jobs, encouraging people into work and helping those in employment further their careers and gain greater financial independence.”
The drop in claimants comes as a £20-a-week booster payment for Universal Credit came to an end earlier this month, amid much criticism and condemnation from charities and opposition parties.
OVER 10,000 FEWER PEOPLE ON UNIVERSAL CREDIT IN COMPARISON WITH 2020