According to the research by Action for Children, the number of households on universal credit more than doubled from 1 million to over 2 million between 2019 and 2022.
Less than half (44 per cent) of those extra 1.1 million families were previously receiving ‘legacy’ benefits that are gradually being replace by universal credit. This suggests that at least 630,000 of the remaining families are new claimants, it says.
The analysis is based upon Government data obtained by the charity through a Freedom of Information request
It comes as new figures published by the Department for Work and Pensions reveal there were 5.9 million people on universal credit last month. They also show a rise in the number of households – mostly single parent families- receiving the benefit.
The charity’s analysis shows how the demographics of households claiming universal credit has changed since the pandemic. In 2019 it was more single adults without children that were claiming, but since the cost-of-living crisis, this had changed to more families with children.
CASE STUDY
Lone parent, Ana, 37, from Somerset, claimed universal credit for the first time during her maternity leave in January 2021.
She currently works part-time as a support worker for people with learning disabilities and mental health issues. She previously worked in the role full-time, had never been out of work or claimed benefits before.
Ana said, ‘I worked right up until my daughter was born in January 2021. As her dad and I had split up, my maternity pay was not enough for us to survive on, so I applied for universal credit as a top-up.
‘I never knew how the system worked before, so it was a shock to find out how little I was expected to live on, even with child benefit.
‘Universal credit is simply not sufficient. The stress and humiliation of not being able to afford the basics for me is the worst.
‘I’ve cut down on absolutely everything. I haven’t been able to buy any new clothing for me or my daughter in the past year, which is just awful.
‘The funded childcare hours just represents a discount on childcare that is already extremely expensive – and it’s less than 15 hours a week as it doesn’t take holidays into account. If someone could stay with my daughter, I would happily work all the hours I could – but I don’t because of the high childcare costs.’
'Our analysis provides more evidence of the devastating double blow of the pandemic and cost-of-living crisis on families with children.'
Action for Children’s chief executive Paul Carberry, said, ‘During the pandemic, the increase in universal credit claims was driven by single people needing help. Our research shows that during the cost-of-living crisis, the big driver of new universal credit claims is families with children struggling to meet their needs, and especially lone parent families.
‘Our analysis provides more evidence of the devastating double blow of the pandemic and cost-of-living crisis on families with children. They face higher poverty rates than others, but also face more barriers to finding work, or taking on extra work.’