William Eichler 26 March 2020

Nearly 500,000 new Universal Credit claims made in nine days

A think tank has warned that the UK is in the midst of an unemployment crisis as 477,000 new Universal Credit (UC) claims are made in nine days.

Responding to the disclosure of new figures by the Department for Work and Pensions, the Resolution Foundation says that this rate of new UC claims represents an increase of over 500% compared to the same period last year.

The think tank warns that this increase ‘dwarfs’ the increases to Jobseeker’s Allowance at the height of the financial crisis, in which weekly increases in new starts peaked at 78%.

The number of new claims to UC in the past nine days, they added, is greater than the successful claims made to JSA in any entire month during the financial crisis.

‘The unprecedented surge in new Universal Credit claims shows that the UK is already in the midst of an unemployment crisis,’ said Karl Handscomb, senior economist at the Resolution Foundation.

‘The increase in claims is putting huge pressure on our social security system, and is driven by a huge hit to family incomes.

‘The Government was right to increase the generosity of the benefits system last week. It now needs to ensure the resources are there so that claims are processed quickly, and people receive support as soon as possible.’

The Resolution Foundation also says that the scale and duration of unemployment increases ‘remains very uncertain’.

They warned policy makers not to assume a repeat of the ‘smaller-than-expected’ increase in unemployment that was seen during the financial crisis.

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner