Britain has seen a staggering rise in the number of people on jobless benefits since Labour’s election victory last year, according to new data released by the Department for Work and Pensions (DWP).
The figures, published this week, reveal that the number of people claiming Universal Credit soared to 8 million last month—a jump of 1.1 million compared to July 2024. This marks the highest level since Universal Credit was first introduced in 2013. Back in July 2024, the number of claimants stood at 6.9 million. Since then, the claimant count has surged by 16% in just twelve months under Keir Starmer’s government.
Of particular note, nearly half (46%) of Universal Credit recipients now face no work requirements at all—another record high for the welfare system.
The data also breaks down the figures by ethnicity, with 76.5% of claimants identifying as White, 10.2% as Asian or Asian British, and 6% as Black, African, Caribbean, or Black British. The statistics show that 1,296,000 claimants are foreign nationals.
The sharp increase comes after Prime Minister Starmer retreated on proposed welfare reforms amid pressure from within his own party. With these changes shelved, analysts warn the number of people on Universal Credit is unlikely to fall any time soon.
How does such a high number of People on Universal Credit Affect People in Southampton?
A large and rising number of people in Southampton on Universal Credit means:
- Increased Pressure on Local Services: More people needing support may put extra strain on food banks, advice services, and community organisations. Meaning the council has to allocate extra funding.
- Local Economy Slowdown: People on Universal Credit tend to have less disposable income. That means less spending in local shops, cafes, and businesses, which can slow down the local economy and even affect jobs. Less money spent can also mean an increase in crime and shoplifting.
- Housing Demand: If many people can’t afford market rents, demand for social and affordable housing rises. This can lead to longer waiting lists and more people at risk of homelessness.
- Health and Wellbeing: Financial stress can impact mental and physical health, so services like NHS mental health support and local charities might see more people needing help.
- Council Finances: While the council doesn’t pay Universal Credit, it does provide other support, and higher demand for these services for housing and support which can stretch council budgets.
