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Universal Credit Job-Entry Rate Falls to Seven-Year Low

Rising exemptions alongside higher welfare forecasts intensify pressure on Labour following reports of reform delays.

Overview

  • Official data show an average of 6.9% of Universal Credit claimants moved into work each month between January and September 2025, the weakest rate since 2019 and below pandemic-era levels.
  • In September 2025, 7.1% of claimants required to seek work started jobs, down from 7.7% in September 2024.
  • A December snapshot recorded 1.6 million people required to job‑search and 4.2 million exempt from work conditions, up from 2.7 million when Labour took office, with officials citing transfers from sickness benefits.
  • The Office for Budget Responsibility projects the welfare bill to increase by £73.2 billion over five years to £406.2 billion.
  • Opposition figures blame Labour’s tax and regulation policies for weak flows into work, while the DWP cites over 500,000 more people in employment year on year and a £1.5 billion programme for young people; separate reports say wider welfare reforms have been delayed by at least a year.