The number of people claiming Universal Credit has climbed to a record 8.3 million, dealing a major blow to Labour's efforts to reduce welfare dependency and increase employment across Britain.
Total caseload rose by 830,000 over the past year, increasing from 7.5 million in February 2025 to more than eight million by February 2026, new Department for Work and Pensions (DWP) figures show.
The latest total represents the highest number of Universal Credit claimants since the welfare system was introduced in 2013, and also revealed a declining proportion of recipients currently in employment.
In January 2026, around 3.1 million Universal Credit claimants were in some form of work, accounting for 37.8 per cent of the total caseload.
This marked a fall from the previous year, when 3.2 million claimants were employed, representing 43.3 per cent of all recipients.
A growing number of claimants are now categorised as having "no work requirements", meaning they are exempt from actively seeking employment due to illness or disability.
The category now accounts for 4.2 million claimants, representing exactly half of all people receiving Universal Credit.
The group has expanded steadily in recent years and first became the largest claimant category in April 2022 after overtaking those actively searching for work.
Universal Credit claimants rise to record 8.3 million as Labour faces welfare pressure
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The increase has accelerated sharply over the past 12 months. Between February 2025 and February 2026, the number of people placed into the no work requirements category rose by one million.
The data also showed that 7.2 million households are currently receiving Universal Credit, with 93 per cent receiving payments.
Families with children account for 44 per cent of households receiving support through the benefit system.
Shadow Work and Pensions Secretary Helen Whately criticised Labour over the growing welfare bill and falling employment rates among claimants.
Ms Whately said: "Labour is letting the welfare bill spiral out of control while fewer people are in work and millions more are being written off onto benefits."
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There were 8.3 million people in Britain overall receiving Universal Credit in October | PAThe Conservative frontbencher said the increase in claimants exempt from work requirements demonstrated a lack of focus from ministers.
Ms Whately added: "The number of people on Universal Credit with no work requirements has surged by one million in a year alone because this Government has been too distracted by internal chaos."
She also claimed only the Conservatives had the resolve to tackle welfare dependency and return more people to employment.
The DWP defended the figures, arguing much of the increase reflected the ongoing transfer of claimants from older benefits onto Universal Credit.
A department spokesperson said: "Nearly 80 per cent of the increase in Universal Credit cases since July 2024 is driven by people moving from legacy benefits — a transition started by the previous Government."
Billions of pounds in benefits are estimated to be overpaid due to fraud or error each year | GB NEWS/DWPThe spokesperson added that ministers had inherited what they described as a broken welfare system and were taking steps to improve support for claimants.
The department said measures included redeploying 1,000 work coaches to assist sick and disabled people seeking employment opportunities.
Separate payment data revealed couples with children receive the highest average monthly Universal Credit payment at approximately £1,330.
Single claimants without dependants receive average monthly payments of around £800. Across all households receiving Universal Credit, the average monthly payment now stands at £1,030.