Surge in number of British citizens claiming Universal Credit study shows

A shock new study by the ‘Resolution Foundation’ has uncovered stark numbers regarding the number of British citizens claiming Universal Credit over the last year. The eyewatering headline is that “UC caseloads are now about twice as high as they were pre-pandemic” and that “half of all single parents now in receipt of UC”. 

The study has also concluded that: “A third of new UC claimants report their family income (including UC) to be at least 40 per cent lower in January 2021”. This had led some to attribute this surge in Universal Credit caseloads directly to the lockdowns and restrictions enforced by the UK government. This news comes amid the backdrop that Britain remains gripped by its third national lockdown as well as government coming under increasing pressure to not scrap the £20 per week increase in Universal Credit implemented in April 2020 to help families during the pandemic. 

In a further worrying trend, the study has concluded that 60% of those in receipt of Universal Credit in December 2020 had been doing so for less than a year. This figure coupled with the findings that “a third of new UC families had no savings at all before the crisis hit” will worry many who fear that COVID lockdowns and restrictions have disproportionately affected the poorest in society. This study, coupled with the report in the ‘Financial Post’ that “Britain’s economy will grow by little more than 3% in 2021 after a 10% slump last year” makes for a worrying short, medium, and long term economic forecast.

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