Fact Service (February 2022)

Issue 6

TUC: 1.3 million more on Universal Credit than pre-pandemic

The TUC has said that the number of workers on Universal Credit (UC) increased by 1.3 million since just before the Covid-19 pandemic. And, it warned, millions of workers on low incomes face a “perfect storm” this April as UC falls behind the rising cost of living.

The organisation’s analysis of official statistics showed that over 2.3 million workers were in receipt of UC at the end of 2021, compared to just over a million on the eve of the pandemic in February 2020.

This represents an increase of 130% over two years and means one in 14 (7.2%) working adults now claim UC, it added, saying the huge rise in UC recipients has been driven by working households being pushed into financial hardship during Covid,.

The TUC says that the basic value of UC is now lower than at the start of the pandemic as a result of UC not keeping up with inflation. Its estimates show that the value of the benefit has fallen by £21 a month when measured against RPI inflation, compared to February 2020.

TUC general secretary Frances O’Grady commented: “The government must do far more to help struggling families get through the tough times ahead. The support package announced by the chancellor last week is woefully inadequate.

“Universal Credit urgently needs boosting, and we need further action to reduce fuel costs for those battling to make ends meet.”

https://www.tuc.org.uk/news/number-workers-universal-credit-13-million-eve-pandemic


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