Surge in Universal Credit claims

Author: Rob WallerPublished 21st Apr 2020

Scots made more than 110,000 new claims for Universal Credit in just over five weeks after the first coronavirus case in the country, new figures showed.

Social Security Secretary Shirley-Anne Somerville said there had been a "huge'' rise in claims for the benefit payment, which had previously averaged at 20,000 a month.

However, between March 1 - the day the first case of Covid-19 was confirmed in Scotland - and April 7 there were more than 110,000 claims made.

Ms Somerville said: "This huge increase in claims for Universal Credit demonstrates just how many people across the country are struggling financially due to the coronavirus pandemic.

"These are difficult and worrying times for everyone, with many people requiring financial support for the first time and even more pressure on those who were already struggling to make ends meet.''

The figures were released at the same time as new figures showing the number in Scots in work had increased in the three months previous to the coronavirus outbreak in Scotland.

Over the period December 2019 to February 2020, Scotland's employment total increased by 35,000 to stand at 2,689,000.

But business minister Jamie Hepburn said the latest employment data from the Office for National Statistics did not show the impact Covid-19 has had on the economy.

The latest figures show Scotland's employment rate was slightly lower than the UK's, with 75.4% of those aged 16 to 64 in work compared to 76.6%.

But the unemployment rate north of the border was lower at 3.7%, less than the 4% recorded for the UK as a whole.

The jobless total for Scotland fell by 1,000 over the three-month period to 105,000.

Economics expert Dr Stuart McIntyre, head of research at the Fraser of Allander Institute think tank, said: "The most important thing to bear in mind about the data released today is that they relate to February and therefore are already outdated - they don't reflect the current condition of the labour market in Scotland or the UK.

"In this context, the numbers today simply confirm that the period of low unemployment and high employment experienced over the past couple of years endured through February.

"But as the economy went in to lockdown and economic activity reduced sharply in March, this situation will have changed markedly.''

Restrictions introduced then in a bid to curb the spread of Covid-19 have led to businesses across the country pulling down the shutters.

Mr Hepburn said that in the period December to February, the employment rate in Scotland "remained close to the highest on record'', with the proportion of people out of work "also close to the record low''.

While he said measures to curb coronavirus are "saving lives'', he insisted ministers are "acutely aware that the impact of these unprecedented but necessary measures is felt throughout the economy''.

Mr Hepburn said: "Throughout this period we are working to protect productive capacity to support the economy and employment to recover quickly when these measures are lifted.

"Businesses receiving support are being encouraged to operate with fair work principles, including supporting staff to self-isolate when they need to and if they have caring responsibilities.''

"Ensuring staff who are unwell don't feel compelled to come into work benefits businesses by protecting the wider workforce.''

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