Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Nearly two million claim universal credit

Nearly two million claim universal credit

Nearly two million people have applied for universal credit benefits since the government advised people to stay at home due to coronavirus.

Work and Pensions Secretary Therese Coffey said there had been more than 1.8 million claims since 16 March.

Ms Coffey told MPs that figure was six times the normal claimant rate, and in one week there had been a "tenfold" increase in claims.

She said about 8,000 staff had been redeployed to deal with the claims.

The figures show the growing increase in demand on the benefit system since the government urged people to avoid non-essential travel and contact with others to curb the spread of the virus.

Ms Coffey told MPs there had also been more than 250,000 claims for Jobseeker's Allowance and over 20,000 claims for Employment Support Allowance.


Advance payments


"Overall, this is six times the volume that we would typically experience and in one week we had a tenfold increase".

She said that the rate for universal credit had appeared to have stabilised at about 20,000 to 25,000 claims per day, which she said was "double that of a standard week pre Covid-19."

She added: "We've also issued almost 700,000 advances to claimants who felt that they could not wait for their routine payment and the vast majority of these claimants received money within 72 hours."

Universal credit is a consolidated monthly payment for those of working-age, which replaced a host of previous benefits including income-based Jobseeker's Allowance, housing benefit, child tax credit and working tax credit.

In October 2019, there were 2.6 million universal credit claimants - just over a third of whom were in work.


'Too many holes'


Labour's Jonathan Reynolds said the government needed to "widen the safety net" of support for everyone who needs it.

The shadow work and pensions secretary said: "The social security system we had going in to this crisis was a safety net with too many holes in it".

Mr Reynolds said that the amount universal credit claimants receive had been significantly increased since the lockdown began, but asked when people on legacy benefits such as Jobseekers Allowance would see the same increases.

He highlighted calls from charities and anti-poverty campaigners to temporarily suspend the benefit cap, which puts a limit on the overall amount working age families can claim.

And he said the two-child limit, which restricts the child element in universal credit and tax credits - worth £2,780 per child per year - to the first two children should be lifted.


New jobs website


"People three years ago could not have been expected to make family choices based on the likelihood of a global pandemic shutting down our economy," said Mr Reynolds.

"The government has suspended sanctions during the crisis but the two-child limit is effectively an 18-year sanction on the third and fourth child in a family and surely it should go too."

Mr Reynolds also said the five-week wait for the first payment of universal credit, another issue highlighted by charities as a cause of hardship despite the availability of advance loans, "should not exist at all".

And he raised concerns over the impact of universal credit on maternity allowance, warning it could result in a "low-paid pregnant woman being as much as £4,000 a year worse off".

MPs thanked front line staff for their work processing the unprecedented increase in the number of claims for support.

Ms Coffey said that average waiting times for calls to DWP helplines were "now below five minutes".

The work and pensions secretary also said a new government website had been set up to advertise new jobs, which had 58,200 vacancies on offer.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×