Northern Ireland

Jump in Universal Credit claimants during pandemic

Minesh Patel of Citizens Advice UK said `seven out of every 10 people coming to us didn't need support previously'
Minesh Patel of Citizens Advice UK said `seven out of every 10 people coming to us didn't need support previously' Minesh Patel of Citizens Advice UK said `seven out of every 10 people coming to us didn't need support previously'

THE number of people with jobs who also needed to claim Universal Credit (UC) doubled to almost 40,000 in the first five months of Northern Ireland's first lockdown.

A new analysis of claims' data reveals almost one in three claimants were in receipt of the social security payment because they were not earning enough from their jobs.

Experts said many UC claims since the start of the pandemic were from furloughed workers or those in low-wage jobs and on zero-hours contracts drawing the benefit to top up incomes.

One economic institute said the coronavirus pandemic had exposed "underlying inequalities in the labour market".

The BBC Shared Data Unit calculated a percentage of claims from individuals in employment has risen seven percentage points between March 2020 at the start of the pandemic to August 2020.

The figure among employed people rose from 18,680 to 39,000 and made 29 per cent for the 132,640 overall claimants.

Universal Credit is means-tested benefit for people of a working age on low income, replacing Income support, Jobseeker's Allowance, Employment and Support Allowance, Housing Benefit, Child Tax Credit and Working Tax Credit.

The payment was increased by £20 a week in April 2020 as part of Chancellor Rishi Sunak's early Covid economic response.

The British government says the boost was only designed as a temporary response to help those unable to work or struggling due to the lockdown.

It has promised additional help will be set out in the March Budget.

Minesh Patel of Citizens Advice UK said "seven out of every 10 people coming to us didn't need support previously".

"Advisers have been supporting a whole range of people including more younger people and more self-employed people....a lot of the people coming to us are on the furlough scheme and need Universal Credit to top up.

"There is a lot of evidence to show people in insecure work will be on lower wages on average than workers in more secure employment."

Emma Congreve of the Fraser of Allander Institute working on poverty, inequality and inclusive growth said it is "not unsurprising that number (in employment) have gone up a bit".

She said it may be "a longstanding issue of low pay in sectors that have been particularly affected meaning they are more likely to tip over the threshold into being able to claim UC".

"The pandemic has exposed a number of underlying inequalities in the labour market."

Month Starts (Households) Total claimants Claimants working (w requirements/no requirements) % in work

Mar 2020 18,670 86,230 18,680 22%

Apr 2020 29,590 121,950 31,250 26%

May 2020 7,260 126,850 35,790 28%

Jun 2020 6,130 130,360 37,830 29%

Jul 2020 4,960 132,140 37,510 28%

Aug 2020 4,700 132,640 39,000 29%