Universal Credit applications hit 1.4 million during coronavirus crisis

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The number of people claiming Universal Credit as a result of the coronavirus crisis has hit 1.4 million, the Work and Pensions Secretary has said.

The figure is an increase of 200,000 on the total Therese Coffey gave last week.

She said the welfare system was “capable of processing and managing those claims” amid concerns of financial hardship for people who are unable to access any of the coronavirus bailout measures.

“We’re up to about 1.4 million people who have claimed Universal Credit and also other people who have claimed other things like Jobseeker’s Allowance or Employment Support Allowance,” Ms Coffey told Sky News.

“So we are capable of processing and managing those claims.”

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Ms Coffey’s comments represent an increase from the figure she gave on April 8 of around 1.2 million people who had made claims since March 16.

Due to the coronavirus outbreak and subsequent lockdown measures, the Government increased Universal Credit by £1,000 a year for 12 months.

Last month Chancellor Rishi Sunak announced the Government's Job Retention Scheme and unveiled a similar package of grants for self-employed workers.

But for those who started new jobs in March, they could be subject to unpaid leave as the furlough scheme only applies to workers who were on the company's PAYE payroll before February 28.

Tony Buchanan, 52, from Warwickshire recently started a new job working for an opticians and its software company.

The company said they weren't able to furlough him and, as he started his job March 2, he was let go.

He told the Evening Standard: "It's been a traumatic time. I've gone from a salary of slightly over £25,000 to being on Universal Credit.

"I was in a queue on the phone for days. In total the process took about four days where my heart was beating, I was sweating and I just had no idea whether I was on their system.

"I think you get just over £400 which is the kind of salary that would have you seen you through in 1979.

"It's very scary because you feel as if you've fallen through a crack."

After he followed the #newstarterfurlough hashtag on Twitter, Mr Buchanan noticed how many people are in a similar position as him.

Laura Corkery, 27, from London added: "It's just incredibly unfair, I've paid tax since I was 18 and because I changed jobs after February 28 I'm not eligible for furlough and because I have to apply for Universal Credit as a joint claim rather than an individual, I will get either get nothing or between two to 3 per cent of what my actual wage has been.

"I'm honestly terrified of the future. We were saving up for our wedding in 2022 but now because I'm getting zero help from the Government we are having to use everything we have painstakingly saved.

"New employers desperately want to furlough their staff but because of the cut-off date they can't, old employees refuse to help meaning our only option is Universal Credit which most aren't eligible for."

Last week MPs on the Work and Pensions Select Committee launched an inquiry into the DWP’s response to the coronavirus outbreak following the increased strain on the system.

They want to understand how well UC is working given the “unprecedented” number of new claimants, if there have been improvements in the delays faced by claimants in the second half of March, and how quickly people are receiving an advance on their first payment.

The department’s permanent secretary Peter Schofield said calls to the UC helpline are “extremely high” and noted approximately 1.8 million calls were made between March 23 and 27.

Mr Buchanan has applied for parcel delivery jobs at local airports but with one application he noticed that more than 1,000 people had already applied for the job.

"There's got to be tens of thousands of us out there who are all in the same position," he said.

"I just don't think Universal Credit is a benefit that is fit for purpose during a global pandemic.

"I've rationed out food and I think can survive until June 7. After that point I think a lot of us will be forced to rely on food banks."

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