One in Five Working-Age Adults Now Receiving Universal Credit

Official figures reveal that 7.3 million people between the ages of 20 and 64 were claiming Universal Credit in May, a number representing 20.3 percent of the working-age population in England and Wales. The TaxPayers' Alliance analyzed the data, highlighting that 3.3 million of these claimants are under 40 and in their prime working years. The analysis also indicated that in many areas, more than a quarter of working-age adults are dependent on Universal Credit, a means-tested welfare payment averaging £1,090 per month.

Blackpool recorded the highest rate, with 35.2 percent of its working-age residents claiming the benefit. Birmingham followed at 33.9 percent, and Enfield at 32.6 percent. The Department for Work and Pensions (DWP) reported a record 8.5 million Universal Credit claimants across England, Scotland, and Wales in May, with the annual cost exceeding £80 billion. Additionally, households including foreign nationals received £11.9 billion in Universal Credit payments last year.

William Yarwood, campaigns director at the TaxPayers' Alliance, expressed concern over the rising dependency, stating, "Generations are being dumped on benefits: written off and condemned to a life of dependency as ministers make it harder for them to find a job." He suggested that reforms should focus on making it more affordable to hire young people.

Further analysis indicates political challenges to reforming the welfare system, with disability benefit claimants outnumbering Labour MPs' majorities in hundreds of constituencies. In 58 percent of Labour-held constituencies in England and Wales, the number of Personal Independence Payment (PIP) claimants exceeded the MP's majority. For instance, Work and Pensions Secretary Pat McFadden's constituency of Wolverhampton South East has 11,646 PIP claimants against a majority of 9,188. The total number of PIP claimants has reached 4.1 million, with the annual cost projected to hit £45 billion by 2030.

A Labour MP acknowledged internal party resistance to welfare reform, noting that "some MPs will oppose any kind of restraint on welfare" and that "the debate requires careful coalition building." John O'Connell, chief executive of the TaxPayers' Alliance, urged ministers not to let "electoral self-interest become a veto on fixing a welfare system," emphasizing that welfare policy should be based on sustainability and fairness for taxpayers.