Rise in Luton families claiming universal credit according to new figures

More people were on universal credit in Luton in March than a year before, figures show.

Provisional figures from the Department for Work and Pensions show 25,949 people were using the benefit in Luton in March – a 5% rise on 24,697 the year before.

In March, 37% of universal credit recipients in the area were employed, and 18,762 households were receiving the benefit.

The figures come as a think tank calls for social security to be pegged to the cost of living.

Universal credit is available to those out of work, disabled or below a threshold of earnings and savings.

Combined with a winding-up of older benefits and reduced employment opportunities, the number of people using universal credit across England rose dramatically over the pandemic and has remained high.

Sam Tims, economist at the New Economics Foundation think tank, said: "inadequate levels of support" combined with low pay and insecure work was forcing people receiving benefits into difficult decisions.

He urged for benefits to be benchmarked to the cost of living, to help those struggling with the current crisis.

Across England and Wales, the number of households with a member on universal credit reached a record peak in February, at nearly 4.5 million across England and Wales.

Anna Stevenson, benefits expert at anti-poverty charity Turn2Us, said "far too many households" are still struggling financially.

She continued: "The Government needs to make sure support is there when people need it, and that it’s the right support to get through this crisis.

"The longer-term, systemic answer, is to build an effective social security system in which people can thrive."