Nealy 40% of Universal Credit claimants also working in North Tyneside
Department of Work and Pension figures show 39.2% of Universal Credit claimants in North Tyneside are already in work. This amounts to 7,391 people out of the total 18,861 claimants.
North Tyneside councillors were exposed to these figures at the last regional economic update. Whitley Bay Labour councillor John O’Shea said: “These figures there are terrible. For a country that seems to be quite wealthy, I think it is disgraceful that Universal Credit should be increasing at such a phenomenal rate.
“It’s two and a half times what it was in November 2019 and my guess about the week of distress that we have had from the government is I don’t think these figures are going to better.”
The economic presentation shown to councillors states the number of people claiming Universal Credit has “levelled off” since the pandemic but has remained consistently high since November 2020. As a point of comparison, the DWP estimated there were around 8,000 people in total claiming Universal Credit before the pandemic in November 2019.
Labour Preston councillor and chair of the economic prosperity sub-committee said: “We have seen these slides many times before, first arriving during Covid. There was a big leap when we were in the middle of the pandemic and they have plateaued since.
“But there are absolutely no signs that they are coming down to pre-pandemic levels. In fact, the latest end of the graph seems to be going back up again which is definitely a worry and what influence we have over it, I suppose, is the key question.”
A DWP spokesperson said: “Universal Credit offers a vital safety net to millions of people, enabling them to support themselves and their families while building towards financial independence through work.
“Every jobseeker claiming benefits in the North East is supported by a dedicated jobcentre work coach, who helps them with their work search using their local links to actively recruit employers and the department will continue to bring jobseekers face to face with employers, helping more people find work and earn a wage.
“To support more claimants to increase their hours and earn more, we are also changing the Administrative Earning Threshold. This change would bring around 115,000 additional claimants into the Intensive Work Search group with the benefits of work coach support alongside a revised claimant commitment.”
The presentation went on to show the worst hit areas in the borough. These wards include Chirton, Riverside, Wallsend, and Howdon.
The presentation also showed that 724 companies in North Tyneside are “in distress”. Of these firms, 188 are in liquidation.
The most impacted industries, according to Council figures, include construction, professional services, accommodation, and wholesale and retailers.