Universal Credit claims in Liverpool almost doubled since Covid

Almost twice the number of Liverpool residents are claiming Universal Credit since the Covid-19 pandemic began, it has been revealed.

Around 60,000 people across the city are said to be seeking financial support – almost double the amount claiming before the first lockdown of March 2020.

Members of Liverpool Council’s finance and resources select committee were given the stark figures during a presentation on welfare reform and pressures resulting from Covid-19.

Councillors heard that at the beginning of March 2020, around 32,000 people in Liverpool accessed Universal Credit but an “incredible and dramatic” increase occurred as the UK Government imposed a lockdown to tackle the virus, reaching a peak of 53,000 in May of that year – a rise of 66 per cent.

The closure of businesses and schools were cited as reasons for the sharp incline in claimants.

It was said that since the end of 2020, the number of residents seeking support had remained high – reaching a peak of 61,000 – but has since fallen to around 60,000 as the Department of Work and Pensions review cases.

Committee members were also told that more than 45,000 working age households are currently in receipt of council tax support in Liverpool.

A “huge increase” occurred between March and August 2020 as more residents came out of work, peaking at around 48,000 households seeking assistance.

The number of pensioners claiming at this time remained stable and a peak of 70,000 households claiming support coming in November 2020.

As of December last year, the number of households seeking financial aid is around 67,000 across Liverpool.

It is expected that the Liverpool Citizens Support Scheme (LCCS) – designed to provide essential living costs in a crisis – will spend the entirety of its £3.1 million budget in this financial year.

A total of 30 per cent of applicants to the scheme cited Universal Credit as an underlying basis, while 15,000 children have been supported through its Urgent Needs Awards (UNA).

Councillors were told that Anfield, Everton, Speke Garston, Kensington Fairfield and Princes Park wards made up the five wards across the city seeking the most support.

It was said that the removal of the £20 uplift to Universal Credit and rising energy costs was a direct contributor to increased numbers of individuals requiring LCCS aid.

Demand for the service has decreased over time but has remained “historically high” with 14,000 applications resulting in 12,000 awards.