Labour Faces Surge in Universal Credit Claimants Not Required to Seek Work

Official figures have revealed that Labour has placed more than a million working age Britons onto jobless benefits with no requirement to search for employment. Since Sir Keir Starmer entered Downing Street, the number of people exempt from job seeking on Universal Credit has now reached 3.7 million, almost half of all claimants for Britain’s main unemployment benefit.

The growth is substantial compared to the 2.67 million claimants with no work requirements recorded in July 2024. Over the same period, the tally of those needing to look for work to receive benefits has decreased from 1.65 million to 1.6 million. DWP sources attribute much of the surge to the process of shifting claimants from legacy benefits onto Universal Credit, though Labour spokespeople continue to blame prior government failures for the trend. The uptick has posed political challenges for Rachel Reeves, particularly after disagreements within her party caused substantial welfare reforms to be abandoned.

Older age groups have been most affected. Britons over the age of 55 have witnessed the largest increase in being signed off without a requirement to seek employment. Claims from those aged 55 to 59 with no work obligation rose by 64 percent to 426000 in the year to July, while 45 to 49 year olds saw a 58 percent rise to 404000. The growth among younger workers is lower, with claims in the 20 to 24 age bracket increasing by just 9 percent to 246000.

Several factors explain the trend. Many older claimants belong to the cohort impacted by gradual rises in the state pension age, leaving more people of pre retirement age eligible for working age benefits. Ill health is significantly more prevalent among older workers, pushing Universal Credit caseloads even higher. The volume of people on sickness and disability benefits remains elevated, and many of those exempt from work searching also receive enhanced sickness benefits valued up to an extra £5000 a year.

Policymakers have faced criticism for failing to enforce stricter reassessments, which largely ceased during the pandemic. Those not required to look for work are typically considered too ill for employment, recent mothers, carers, or those with terminal diagnoses, according to DWP criteria. The system has resulted in more than two million people remaining on Universal Credit or Employment and Support Allowance for at least five years, raising concerns that long term welfare reliance could become entrenched.

Women aged 55 to 65 are particularly likely to be signed off indefinitely compared to men, a trend linked to increases in the state pension age for women over the last decade. Scheduled further rises to the pension age are intended to improve public finances, yet may be undermined if even more people shift from work into long term benefit claims.

The government continues with plans to reduce Universal Credit payments for new claimants who do not have to look for work due to health reasons, seeking to balance incentives and the rising strain on public coffers. Think tanks and economists underline that bolder welfare reform may be unavoidable for the viability of both the jobs market and public finances in the years ahead.