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Universal Credit Caseload Hits 8 Million as Employment Falls and Benefit Costs Surge

New government figures show one million more Universal Credit claimants since Labour took office, highlighting growing welfare spending pressures.

Overview

  • Eight million people now claim Universal Credit, including roughly 3.4 million exempt from work-search requirements, marking a one million increase since Labour took office.
  • Spending on sickness and disability benefits is projected to hit about £100 billion by 2030, intensifying fiscal pressures.
  • Since Labour took office, payrolled employment has declined by approximately 164,000, led by drops of 59,000 among under-18s and 106,000 among 25-34-year-olds.
  • The number of benefit claimants signed off with no work requirements has surged in older age groups, rising 64% among 55-59-year-olds and 58% among 45-49-year-olds in the past year.
  • Editorials link these trends to Covid-era assessment relaxations and recent tax rises by Chancellor Reeves, renewing criticism of Labour’s economic stewardship and underscoring a fiscal gap flagged by the OBR.