Shelter highlights 125.5% increase in number of people claiming benefitsMake Text Bigger
Shelter have highlighted Office for National Statistics figures for workforce data showing the number of people claiming employment related benefits reaching 2.8 million in May. This is a 125.5% rise since March and includes those employed with low income or hours and those who are unemployed.
More than 600,000 people droped off the payroll in May compared to March 2020 (a fall of 2.1%) according to the latest HMRC Pay As You Earn Real Time Information.
People who lose their jobs will struggle to find new positions as the data suggests a decrease of approximately 60% in job vacancies for May compared with March 2020.
ONS data confirms Department of Work and Pensions figures that showing a 40% rise in people applying for Universal Credit in April 2020. This takes the total number of new UC claims to 1.2 million since the start of lockdown.
Polly Neate, chief executive of Shelter, said: “Figures warn of hundreds of thousands losing their jobs. Many of them will be private renters living in the least secure homes.
“While the evictions ban is providing some temporary respite, it isn’t stopping renters who’ve lost income from amassing home-threatening debts. Worse yet, with Universal Credit too low to pay average rents, those same renters are met with gaping holes in the government’s safety net. We speak to families every day who can’t keep the wolf from the door.
“Without more support, tens of thousands of renters are facing the very real prospect of homelessness when the evictions ban ends. To defuse this ticking time bomb, the government must increase benefit levels, so they cover average rents. It also needs to change the law to protect renters by giving judges the power to stop people automatically losing their homes due to rent arrears.”
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