Number of people claiming Universal Credit in Suffolk doubles
Over half of those are in work but can't earn enough to live
Fresh fears have been raised that cost of living pressures will mean high numbers of Universal Credit claimants in Suffolk won’t reduce back down to pre-Covid levels.
Department for Work and Pensions data for January 2020 indicated there were 29,240 people in Suffolk on Universal Credit – just over 18,000 who were not in employment and around 11,200 who were in work.
That number had soared to 54,880 in January 2022, nearly 24,000 of whom were earning.
It represents an increase of 25,640 people in two years as a result of pressures during the Covid-19 pandemic.
For those in employment, it represents a 114% increase.
The figures peaked in March 2021 at 58,833 for Suffolk, meaning the numbers have fallen by around 4,000 since then.
But Jack Abbott, a former Labour county councillor who has been campaigning on issues around Universal Credit and Free School Meals, said he feared the current cost of living pressures will drive up numbers of people in need of support.
He said: “The number of people on Universal Credit in Suffolk has nearly doubled since the eve of the pandemic, but a perfect storm of tax hikes and price rises will result in thousands more people being forced into terrible financial hardship.
“In Suffolk, nearly 25,000 people on Universal Credit are in work, and the reality is that, with the Government’s minimum wage failing to keep pace with the cost of living, many people just can’t make ends meet.
“To compound the crisis further, the Government has refused to increase Universal Credit payments in line with inflation meaning that people will find it even tougher to heat their homes and put food on the table for their families.”
Among increasing costs UK households face are energy bills – after the energy cost cap increased by 54% – and a 1.25% increase on National Insurance contributions.
Other costs such as the weekly or monthly food shop, fuel prices, and council tax bills have increased too.
A Government spokesman said: Universal Credit offers a vital safety net to millions of people, enabling them to support themselves and their families while our Way to Work campaign is getting half a million people into work by the summer as job centres across the country short-circuit recruitment processes by bringing jobseekers face to face with employers.
“We recognise the pressures people are facing with the cost of living, which is why we’re providing support worth £22billion across the next financial year.
“This includes putting an average of £1,000 per year into the pockets of working families via changes to Universal Credit, cutting fuel duty and helping households with their energy bills.
“We’ve also boosted the minimum wage by more than £1,000 a year for full-time workers and are raising National Insurance thresholds so people keep more of what they earn, while our £1bn household support fund is helping the most vulnerable with essential costs.”