Research reports 130 per cent increase on Universal Credit claims since pandemic

ELLIE DOUGHTY
toby@slpmedia.co.uk

Claims for Universal Credit (UC) have increased by nearly 130 per cent over the course of the pandemic, research from City Hall shows.

The boroughs with the highest increases in UC claims included Southwark, Lambeth and Westminster – with the rising figures being matched by rising levels of unemployment and poverty.

UC claims soared by 86 per cent in Southwark, 119.7 per cent in Lambeth and 165 per cent in Westminster between March 2020 and September 2021, the latest figures from the Department of Work and Pensions (DWP) show.

Simon Boxall, project manager at Southwark Foodbank, said he believed the number of claimants was between 24-25,000 in January 2020, increasing to around 46,000 in December of that year.

The £20 increase in UC allowances by the Government in April 2020 was removed in September 2021, which Mr Boxall described as “effectively more than a 20 per cent pay cut”, at a time when Southwark was still seeing around 41,000 UC claims.

Mr Boxall said: “The £20 uplift through the pandemic showed that they can be a caring and compassionate Government, but to take it away was just diabolical, really.”

Speaking of Southwark council, Mr Boxall said they are “willing to work with the food providers in the borough,” but added that the Government enforces “policies of treating people in poverty without any respect”.

“It’s a very old Tory mantra, really, that these people are scroungers who deserve what they’re getting.” Sophie, from Croydon, spoke of her experience using Universal Credit.

She said: “I went on Universal Credit after my company was downsized during the pandemic, to supplement the small amount of income I was making by working part-time, as jobs were difficult to find at the time.”

“It really was a lifesaver for me during that period, although it would have been a very small amount to live on if I was not working alongside. “The calls with the job support staff to check in on my next steps and how I was doing were good, and they were really supportive and knowledgeable.

“It was a really good support scheme when I was taking my next steps during the pandemic, but the amount was small, and I was grateful to have some savings and part-time work to help me.”

London Mayor Sadiq Khan published the analysis in December 2021, stating that London has the highest rate of youth unemployment in the country and that more than a fifth of those aged 16-24 are currently unemployed.

A DWP spokesman said: “We’re providing extensive support to those on the lowest incomes, including putting an average of £1,000 more per year into the pockets of working families on Universal Credit, increasing the minimum wage and helping with the cost of fuel bills.

“Our £500m Household Support Fund is also giving more help to the most vulnerable with essential costs this winter, and councils have been given an extra £65m to support low income households with rent arrears.”

Southwark Foodbank, part of The Trussell Trust and Pecan charity, provides food to those who are referred, often by Southwark job centres.

 

Pictured: Helpers from South London Foodbanks