Sir Keir Starmer's time as PM has seen more than a million extra people more claim universal credit (Image: Getty)
One million people have been put on benefits that do not require them to look for work since Labour took power, new figures have revealed. A record eight million people, mostly Britons, now claim universal credit – up from 6.9 million in July 2024.
The huge rise was driven almost entirely by claimants who are not required to look for work, which was up 39% or one million. It means 3.7 million people - 46% of those receiving universal credit - do not have to find a job.
Article continues belowADVERTISEMENT
Undo
DON'T MISS
Powered by
'Almost certain' good news coming today for anyone buying a home
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Bank of England slashes interest rates to lowest point for over 2 years
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
UK 'on the brink' as Rachel Reeves massive mistakes are laid bare in full
POLL: Should the Bank of England cut interest rates?
Good Morning Britain halted for 'breaking news' - it's crushing blow to Keir Starmer
POLL: Should Starmer and Reeves resign as they leave UK economy on the brink?
The full breakdown of just how Rachel Reeves has blown a ￡51bn black hole in the economy
Rachel Reeves ridiculed Tories 34 times over ￡22bn blackhole - then made one twice as big
Fury over suggestion state pension age could be increased to 80
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
State pension triple lock update as pensioners set for ￡478 boost
Experts Link This Common Food to Memory Loss and Dementia (See story)Memory Health |
Learn More
Undo
Rachel Reeves tax raid sees UK jobs hit two-year low
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Neuropathy is not from Low Vitamin B. Meet the Real Enemy of Neuropathy (Stop Doing This)FootRenew |
Learn More
Undo
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
British standard of living blow: Labour IS to blame says Bank of England
52-Year-Old With Baby Face. Here's What She Does Before BedThe Skincare Magazine |
Undo
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
She Mixed Pink Salt With This - Now She Can't Stop Losing WeightYour Health |
Undo
'Almost certain' good news coming today for anyone buying a home
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Doctors Speechless: New ED Med Works Lightning FastMen's Health |
Learn More
Undo
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Bank of England slashes interest rates to lowest point for over 2 years
99% of Women With Incontinence Don’t Know This New Bladder Strengthening TrickWomenBuzz |
Learn More
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
UK 'on the brink' as Rachel Reeves massive mistakes are laid bare in full
POLL: Should the Bank of England cut interest rates?
Good Morning Britain halted for 'breaking news' - it's crushing blow to Keir Starmer
POLL: Should Starmer and Reeves resign as they leave UK economy on the brink?
The full breakdown of just how Rachel Reeves has blown a ￡51bn black hole in the economy
Rachel Reeves ridiculed Tories 34 times over ￡22bn blackhole - then made one twice as big
Fury over suggestion state pension age could be increased to 80
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
State pension triple lock update as pensioners set for ￡478 boost
Rachel Reeves tax raid sees UK jobs hit two-year low
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
British standard of living blow: Labour IS to blame says Bank of England
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
'Almost certain' good news coming today for anyone buying a home
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Bank of England slashes interest rates to lowest point for over 2 years
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
UK 'on the brink' as Rachel Reeves massive mistakes are laid bare in full
POLL: Should the Bank of England cut interest rates?
Read more: 'Britain is driving towards the cliff edge under Labour'
Work and Pensions Secretary Liz Kendall (Image: Getty)
Campaigners warned that the UK needs a "system that can identify the genuinely needy from the obviously work-shy".
Joanna Marchong, investigations campaign manager at the TaxPayers' Alliance, said: "The driver of this astonishing increase is those with no work requirements. That means they’re not just out of employment, they’re not even looking for it.
"There will always be those who cannot work, because of their own disabilities or illnesses or because they need to act as a carer. But there are now an extraordinary 3.7 million of them on universal credit.
Sponsored
Read More
Emma & Mia Are Retiring — Their Handmade Jewelry Is 80% Off
Undo
"There will be many who will be able to do at least some level of work. We need a system that can identify the genuinely needy from the obviously work-shy."
Universal credit is a payment to help with living costs and is available for people in work who are on low incomes, as well as those who are out of work or cannot work.
People who are not required to work can include those in full-time education, over the state pension age, someone with a child aged under one, and those considered to have no prospect of work.
The number of working people on the benefit rose to 2.2 million in July, up slightly from 2.1 million 12 months previously.
Figures for July are largely unchanged from the previous month, again showing that the majority (83.8%) of claimants were British and Irish nationals and those who live or work in the UK without any immigration restrictions.
The statistic of eight million for July is the highest level it has been since the payment was introduced in 2013.
Tory Shadow Work and Pensions Secretary Helen Whately MP said: “Under Labour, unemployment has risen 10 months in a row, and over one million more people are on benefits. Labour promised good jobs but are just putting people on more benefits paid for by ever higher taxes.
“Labour have always left office with more people out of work than when they found it. It’s no wonder business leaders are warning that all indicators are flashing red.”
The huge rise was driven almost entirely by claimants who are not required to look for work (Image: Getty)
The Labour Government has previously said it "inherited a broken welfare system and spiralling, unsustainable benefits bill" from the Conservatives.
It comes weeks after Sir Keir Starmer’s attempt to cut Britain's ballooning benefits bill was derailed by a major rebellion among Labour MPs.
The Prime Minister was forced to scrap most of his planned welfare changes in the face of a huge Labour revolt.
He ditched his proposed restrictions to Personal Independence Payment (PIP), which is the main disability payment in England, until after a review.
Sir Keir was instead left to push through slimmed-down legislation in the House of Commons, now only referred to as the Universal Credit Bill.
As part of the Bill, the basic Universal Credit standard allowance will rise at least in line with inflation until 2029-30.
But the health part of the benefit will be reduced for new claimants after April 2026, unless they had a severe or terminal condition, and the rate will be frozen until 2030.
It comes as Rachel Reeves conceded the Government had “more to do” but defended her stewardship of the economy as figures showed the UK’s unemployment rate stuck at a four-year high.
The Chancellor insisted Labour had been “creating more jobs” since entering office despite vacancies declining over the last quarter, with experts warning of a further “cooling in the labour market”.
Speaking to reporters on a visit to Belfast YESTERDAY (TUES), Ms Reeves said the Government had returned stability to the economy but that there was “absolutely” more progress to be made.
“There is more to do, but in the first year, we’ve managed to return stability to the economy, we’re growing the economy and reducing costs, particularly mortgage costs for hard-pressed families,” she said.
The Office for National Statistics (ONS) earlier released figures showing the rate of UK unemployment struck 4.7% in the three months to June.
It was the same as the previous three-month period, which had been the highest level since June 2021.
Meanwhile, average earnings growth, excluding bonuses, remained at 5% for the period to June.
UK vacancies tumbled by 44,000 over the three months to July to 718,000 – the lowest number of job openings since April 2021.
Ms Reeves acknowledged there had been a decline in the quarter but said there was “really positive news” in the figures, with some 384,000 more jobs in the economy than there were just over a year ago.
“The most important figure today is that there are 384,000 more people in work than when I became Chancellor,” she said.
“Everybody who can work should be in work, and as a Government, we’re committed to helping more people back to work. There are huge opportunities in our economy.”
The signs of further pressure in the labour market alongside recent weak economic growth pose a challenge for the Government and policymakers at the Bank of England.
The Bank last week indicated that unemployment was likely to rise further later this year as it chose to cut interest rates again to 4%.
DON'T MISS
Powered by
'Almost certain' good news coming today for anyone buying a home
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Bank of England slashes interest rates to lowest point for over 2 years
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
UK 'on the brink' as Rachel Reeves massive mistakes are laid bare in full
POLL: Should the Bank of England cut interest rates?
Good Morning Britain halted for 'breaking news' - it's crushing blow to Keir Starmer
POLL: Should Starmer and Reeves resign as they leave UK economy on the brink?
The full breakdown of just how Rachel Reeves has blown a ￡51bn black hole in the economy
Rachel Reeves ridiculed Tories 34 times over ￡22bn blackhole - then made one twice as big
Fury over suggestion state pension age could be increased to 80
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
State pension triple lock update as pensioners set for ￡478 boost
CVS Hides This $1 Generic Viagra - Here’s the Aisle It's Really In.Friday Plans |
Learn More
Undo
Rachel Reeves tax raid sees UK jobs hit two-year low
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Lara Green Is Retiring - Her Final Jewelry Pieces Are 80% OffDurham News |
Read More
Undo
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
British standard of living blow: Labour IS to blame says Bank of England
What is the best DISC profile for leadership?PeopleKeys |
Learn More
Undo
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
Dexcom G7 is proven to lower A1C and increase time in range3？？.Dexcom |
Undo
'Almost certain' good news coming today for anyone buying a home
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Why Walgreens Hides This Cheap 87￠ Generic CialisFriday Plans |
Learn More
Undo
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Bank of England slashes interest rates to lowest point for over 2 years
China Cuts Rare Earth Supply. U.S. Looks UndergroundCapital Trends |
Learn More
Undo
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
UK 'on the brink' as Rachel Reeves massive mistakes are laid bare in full
She’s 75 and Retiring - Her Handcrafted Jewelry Is 80% OFFDurham News |
Read More
Undo
POLL: Should the Bank of England cut interest rates?
Good Morning Britain halted for 'breaking news' - it's crushing blow to Keir Starmer
Thousands of Men Rave About the Cozy Soft T-shirt.Bestbestones |
Shop Now
Undo
POLL: Should Starmer and Reeves resign as they leave UK economy on the brink?
The full breakdown of just how Rachel Reeves has blown a ￡51bn black hole in the economy
Top 3 Fruits To Avoid Plastic Surgeon In 2025totalmetabolicreset |
Learn More
Undo
Rachel Reeves ridiculed Tories 34 times over ￡22bn blackhole - then made one twice as big
Fury over suggestion state pension age could be increased to 80
Top 10 Blood Pressure Monitors of 2024 Tested by DocReviewsDocReviews |
Learn More
Undo
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
State pension triple lock update as pensioners set for ￡478 boost
Rachel Reeves tax raid sees UK jobs hit two-year low
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
British standard of living blow: Labour IS to blame says Bank of England
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
'Almost certain' good news coming today for anyone buying a home
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Bank of England slashes interest rates to lowest point for over 2 years
Keir Starmer refuses to rule out tax hikes after ￡50bn black hole exposed
UK 'on the brink' as Rachel Reeves massive mistakes are laid bare in full
POLL: Should the Bank of England cut interest rates?
4 Dozen Pro V1 (48 packs) for just $29 todayPro V1
Undo
Sponsored LinksSponsored Links
Ditch Expensive Hearing Aids—Try This Genius AlternativeHear True
Undo
Sponsored LinksSponsored Links
Experts Stunned by New ED Trick (Works in Minutes)Men's Health
Undo
Sponsored LinksSponsored Links
Nobel Scientist Identifies What's Draining Seniors EnergyOxyNaturals
Undo
Sponsored LinksSponsored Links
The National Institute of Economic and Social Research (Niesr) earlier this month said weaker-than-expected recent economic activity, U-turns on welfare cuts and forecast-beating borrowing mean Ms Reeves is on track to miss one of her fiscal rules by ￡41.2 billion in 2029-30.
Including the need to rebuild the fiscal buffer of just under ￡10 billion that has been wiped out, she will have to find more than ￡51 billion, according to the leading think tank.
Ms Reeves has refused to rule out tax rises at the budget since Labour MPs forced ministers to make concessions on welfare reforms, which the Government had hoped would save up to ￡5 billion a year.
Read Next
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy