Universal credit claimants hit record high

The Labour Government has previously said it ‘inherited a broken welfare system and spiralling, unsustainable benefits bill’

The number of people on universal credit in July 2025 was 8.0 million, the highest level it has been since the benefit was introduced in 2013 (Alamy/PA)

Universal Credit claimants have reached a record eight million, according to official figures published on Tuesday. This unprecedented number for July 2025 marks the highest level since the benefit's introduction in 2013.

The latest data reveals a significant surge of over a million people in just one year, up from 6.9 million claimants in July last year.

Universal Credit is a payment designed to assist with living costs, available to those in low-income employment, as well as individuals who are out of work or unable to work.

The steep rise in the past year has been driven almost entirely by people who are not required to work, with 3.7 million in this category in July – a rise of 39% or 1 million since the same time in 2024.

People in this bracket can include those in full-time education, over the state pension age, someone with a child aged under one, and those considered to have no prospect of work.

The number of people on universal credit in July 2025 was 8.0 million, the highest level it has been since the benefit was introduced in 2013 (Alamy/PA)

The Labour Government has previously said it “inherited a broken welfare system and spiralling, unsustainable benefits bill” from the Conservatives, and is working on reforms including tightening rules on who can claim UC.

The number of working people on UC rose to 2.2 million in July, up slightly from 2.1 million 12 months previously.