Universal Credit claims rise by 63,000 in one month with 25,000 not required to look for work

The February figures bring the total to 8.40 million people, up from 8.34 million in January.

More than a third of those added to the system, around 25,087 individuals, were placed on benefits without any requirement to seek work.

Most have been assessed as too unwell to do so, while others are caring for children.

These figures come before the planned removal of the two-child benefit cap, suggesting the number of claimants could rise further in the months ahead.

Chancellor Rachel Reeves confirmed in November’s Budget that the cap will be lifted this month following pressure from Labour backbenchers.

The new figures also come as Universal Credit payments rise for millions of claimants across Britain, with new rates for the 2026/27 financial year coming into force on April 6.

The increase represents an above-inflation uplift and forms part of wider changes to the benefits system introduced by the Department for Work and Pensions.

Single claimants aged 25 and over now receive £424.90 a month, up from £400.14, equivalent to around £5,098 a year.

This group makes up the largest share of Universal Credit recipients, meaning the changes affect a significant proportion of claimants. By the end of the decade, those in this category are expected to receive an additional £760 a year compared with 2024 levels.

However, while standard allowances are rising, the health element of Universal Credit is being reduced for new claimants under the latest reforms.

The growing welfare caseload is also being driven by rising disability-related claims.

Payments for anxiety alone are now costing taxpayers around £800 every minute, with spending on Personal Independence Payment (PIP) for the condition jumping from under £100million in 2019 to nearly £427million over the past year.

In the twelve months to January, 66,818 people across England and Wales claimed PIP with anxiety as their main condition, receiving an average of £122.77 per week.

Mental health conditions have driven much of the increase in disability benefit claims since the Covid pandemic, now representing over 40 per cent of all PIP applications.

The Institute for Fiscal Studies found psychiatric disorders accounted for 55 per cent of the growth in disability payments.

The benefit can be granted without any medical examination, with awards of up to £194 weekly possible based solely on a personal diary or a letter from an acquaintance describing how the condition affects everyday activities.

PIP is not means-tested, meaning a company director earning six figures qualifies under identical criteria as anyone else. Recipients face no obligation to leave their jobs.

The assessment system awards points across twelve categories covering daily living and mobility tasks. Accumulating just eight points from a maximum of 72 triggers the standard daily living rate of £73.90 weekly, with additional mobility payments potentially adding £77.05 more.

Reform Treasury spokesman Robert Jenrick described the spending on mild mental health conditions as "absurd," adding: "It is offensive to the hardworking majority that so much of their taxes is being wasted. The spiralling benefits bill now threatens to bankrupt the country."

Shadow work and pensions secretary Helen Whately stated: "Millions are getting benefits for anxiety and ADHD, along with a free Motability car. The bill is too high and the system is broken."

A DWP spokesman defended the Government's approach and said: "We recognise that the welfare system we inherited is in need of reform, which is exactly what we are doing.

"Our recent changes to Universal Credit narrow the gap between payments for people on health-related benefits and those actively seeking work - with an expected saving of nearly £1billion for the taxpayer and the removal of perverse incentives that drive sickness claims."