Unemployment benefits are provided by the state to financially assist individuals who have lost their jobs due to layoffs or retrenchment. These benefits aim to offer income to unemployed workers until they find new employment, providing partial income replacement for a specified period or until reemployment. Eligibility involves meeting criteria like a minimum work period and actively job hunting. The concept was introduced in the UK in 1911 through the National Insurance Act, which supported job seekers who contributed to National Insurance. The maximum weekly amount was seven shillings, around £38 in 2021.
In July 2023, the UK had 1.57 million claimants, up by 29,000 from the previous month and by 342,000 from March 2020 before the pandemic.”
In the UK, the main unemployment benefit is called The Jobseeker’s Allowance (JSA). It is aimed at helping unemployed citizens actively seeking work by providing financial support. Recipients must show their commitment to finding jobs and being open to reasonable-wage opportunities. There are two types of JSA: income-based and contribution-based. Income-based JSA is being replaced by Universal Credit, which is available to unemployed individuals under State Pension age. This discussion will focus on the 2023 Claimant Counts for Universal Credit in the UK.
Claimant Counts as of July 2023
The Claimant Count is a monthly measure of people getting unemployment-related benefits in a region. In July 2023, the UK had 1.57 million claimants, up by 29,000 from the previous month and by 342,000 from March 2020 before the pandemic. The count doubled during the pandemic, with a smaller rise in unemployment. In July 2023, 6.1 million received Universal Credit, up from 5.5 million in March 2022 and surpassing the pandemic peak of 6.0 million in March 2021.
Source: DWP Stat-Xplore, People on Universal Credit by Conditionality Regime
Now, let’s delve deeper into the Claimant Counts in more detail, considering their breakdown by Conditionality Regime, Gender, Employment, and Household.
Claimant Counts by Conditionality Regime
Within the Universal Credit system, the count of individuals under the ‘searching for work’ conditionality category has dropped from its peak of 2.4 million in March 2021 to 1.4 million in July 2023. On the other hand, the count of individuals falling under the ‘no work requirements’ conditionality category has been consistently rising, reaching 2.1 million in July 2023. This transition occurred in April 2022 when it surpassed the ‘searching for work’ category. This shift is due to new claims being made for Universal Credit and individuals naturally transitioning from Employment and Support Allowance (ESA).
However, the count of individuals under the ‘Working with requirements’ conditionality category has decreased from its peak of 1.0 million in October 2022 to 0.8 million in July 2023.
Source: DWP Stat-Xplore, People on Universal Credit by Conditionality Regime
Claimant Counts by Gender and Conditionality Regime
In July 2023, the composition of individuals on Universal Credit based on gender and conditionality regime reveals that women constituted 57% of the total. This figure has remained consistent since July 2022. Notably, within all conditionality regimes except for ‘searching for work,’ women outnumber men. The rise in the percentage of individuals falling under the ‘no work requirements’ regime has played a role in driving the overall increase of women among those on Universal Credit.
Source: DWP Stat-Xplore, People on Universal Credit by gender and conditionality regime
Claimant Counts by Employment.
From June 2018 to June 2023, the number of individuals employed while receiving Universal Credit in Great Britain has been tracked. Universal Credit assists both those with low-income and jobless individuals. According to these statistics, a person is considered employed if they earn a salary during the assessment period that covers the count date. As of June 2023, the count stood at 2.3 million employed Universal Credit recipients, constituting 38% of the total Universal Credit recipients. This percentage has remained consistent since January 2023.
Source: DWP Stat-Xplore, People on Universal Credit by employment indicator
Claimant Counts by Household
A household, defined as a single individual or a cohabiting couple, with or without dependent children, is also termed a benefit unit in alternative statistics. In May 2023, there were 5.1 million households benefitting from Universal Credit, exceeding the previous peak of 5.0 million in February 2021. Among them, 4.6 million households received payments, making up 91% of the total households on Universal Credit for that month. Universal Credit is provided to households meeting certain criteria during specific assessment periods.
Source: DWP Stat-Xplore, Households on Universal Credit by Payment indicator
Universal Credit Payment Details
If you’re curious about your eligibility for Universal Credit and the corresponding amount, it’s a monthly payment that’s calculated based on various factors. These factors include your standard allowance, any applicable additional amounts, deductions from your payment, and your earnings if you’re employed. The specific standard allowance varies depending on your circumstances:
- Single and under 25: £292.1
- Single and 25 or older: £368.74
- Living with a partner, both under 25: £458.51 (combined)
- Living with a partner, one or both 25 or older: £578.82 (combined)
Additional amounts are possible:
If you have children, you receive extra funds for the first and second child. No extra funds are granted for additional children, except under specific conditions.
- Amounts for the first child: £315.00 (born before 6 April 2017) or £269.58 (born on or after 6 April 2017).
- Amounts for subsequent eligible children: £269.58 each.
- Extra amounts are given for disabled children: £146.31 for disabled and £456.89 for severely disabled children. This applies to all your children, regardless of their number.
Summary
To sum up, in July 2023, the number of individuals on Universal Credit reached 6.1 million. The percentage of individuals under the ‘no work requirements’ conditionality system is steadily rising. The weekly average for claims in July 2023 was 43,000, and in May 2023, half of the households receiving Universal Credit included children.
