Universal Credit claimants up a million in 1 12 months, | U.Ok.Finance News
New statistics from the Department for Work and Pensions have proven eight million people are at the moment receiving Universal Credit. This marks the very best determine for the reason that benefit was first launched in 2013 and represents over a million more claimants than the earlier 12 months. In July final 12 months, 6.9 million claimants had been recorded.Universal Credit is designed to help with the associated fee of residing for individuals who are unable to work, at the moment out of work or in low-income employment. Experts are sounding warnings about this closing group particularly, highlighting the financial penalties of having employees who can not survive on their wages alone and should depend upon authorities help to get by regardless of being employed.Currently, 34% of Universal Credit claimants are in employment, while 46% fall into the “no work requirements” bracket.Whilst some analysts attributed these climbing numbers to the broader financial climate, others highlighted the influence of Labour’s welfare reform launched earlier this 12 months.Originally referred to as the Universal Credit and Personal Independence Payments Bill, this laws contained some controversial proposals altering the eligibility standards and fee quantities for each advantages.Major concessions had been made earlier than the Bill was voted by way of the House of Commons, however one reform nonetheless in the pipeline is adjustments to the health factor of Universal Credit that may halve and freeze the quantity that people obtain in the event that they apply for the benefit after subsequent April.Samuel Mather-Holgate, Independent Financial Adviser at Mather and Murray Financial, commented: “It’s no surprise if you frighten the life out of a population telling them new claimants are not going to get enough to live on, you get a lot of people trying to beat the deadline. Now the government has rowed back on their proposals, these figures should settle down.”However, different specialists consider there’s a greater narrative driving these figures. Keith Budden, Managing Director at Ensurety, acknowledged: (*1*)How have politicians of all colors allowed our financial system to achieve this example, the place employers in the public and personal sector aren’t paying their workers enough to realize a primary degree of income?”.Pete Mugleston, Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk, commented: “An increase of over a million people on Universal Credit in simply a 12 months displays the financial difficulties many households are dealing with. It suggests more households are struggling to search out secure, well-paid work and are counting on the protection web to get by.”This puts the government’s core priority of delivering growth under greater scrutiny and raises questions over how it will manage the growing fiscal cost of supporting so many people.”
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