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Tue, 4 August 2020

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Nearly a million people claim Universal Credit as coronavirus outbreak worsens

Nearly a million people claim Universal Credit as coronavirus outbreak worsens

Universal credit claims have soared in the past two weeks.

2 min read

Nearly a million people have made claims for Universal Credit in the past fortnight as the economic impact of the coronavirus outbreak takes its toll.

Figures released by the Department for Work and Pensions show that 950,000 successful applications were made between 16 March and the end of the month.

Labour said the figures - nearly 10 times higher than a normal two-week period - were "truly shocking".

Many of the claimants are thought to be self-employed workers whose incomes have dried up as the economy has gone into lockdown.

A DWP spokesperson said: "With such a huge increase in claims there are pressures on our services, but the system is standing up well to these and our dedicated staff are working flat out to get people the support they need.

"We're taking urgent action to boost capacity - we've moved 10,000 existing staff to the help on the front line and we're recruiting more."

Shadow Work and Pensions Secretary Margaret Greenwood ministers must now scrap the five-week wait for UC payments to come through.

"The number of people now trying to claim Universal Credit is truly shocking," she said.

"The Government must wake up and take action, not leave people waiting days to verify their identity and five weeks to get the support they need.

 "Advances are not the answer to the five week wait, they are loans that have to be paid back, and nobody knows how long this crisis will last for.

 "The Government should turn advances into non-repayable grants to end the five week wait and make sure people get the support they need quickly at a level that genuinely protects them from poverty."

Meanwhile, the Institute for Fiscal Studies think tank has said that two million self-employed people - nearly half of the total - will not be helped by a government scheme to pay 80% of their normal income.


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