Universal Credit
Summary
Universal Credit is a payment for people under state pension age and on a low income or out of work. It includes support for the cost of housing, children and childcare, and financial support for people with disabilities, carers and people too ill to work.
In May 2024, the proportion of persons aged 16-64 on Universal Credit (UC) was 17.8% in the Lancashire-12 area, 19.7% in the Lancashire-14 area and 19.1% in the North West region. These were all higher than the Great Britain proportion of 16.5%.
Blackpool (28.4%) had the highest UC total proportion in GB (out of 350 local authorities). Burnley (27.0%) had the third highest proportion and Blackburn with Darwen (26.7%) the joint fifth highest in GB. Hyndburn (25.5%) and Pendle (25.2%) were ranked in the top 4% of the GB rankings. The proportions for Preston (20.5%) and Rossendale (17.9%) were also above the GB proportion (16.5%). In contrast, Ribble Valley (8.9%) had the joint eleventh lowest UC proportion in Great Britain, and the lowest proportion in the L-14 area and the North West region.
Recent trends
The number of people on Universal Credit has generally been on the increase once again since early 2022.
Compared to May 2023, the total number of persons on UC has increased by 18.9% in Lancashire-12 and increased by 18.7% in Lancashire-14 (UK=+14.0%).
Much of the increase to the UC totals since early 2022 has been driven by the 'Not in employment' UC category. However, since mid-2023, numbers within the 'In employment' UC category have also been rising at an accelerated pace - although this has tailed off in the last couple of months. The yearly percentage increases for both UC sub-categories are now similar – about 18% to 19% in the Lancashire-12 and Lancashire-14 areas, and 14% in Great Britain.
All Lancashire-14 areas recorded yearly increases to the 'Not in employment' UC category and the 'In employment' UC category. The accelerated pace of the increases are particularly evident in Blackburn with Darwen and Pendle.
Information on Universal Credit data
The Department for Work and Pensions (DWP) publish monthly Universal Credit statistics by local authority boundary. The chief statistician for the DWP designated these as official statistics from August 2023. The data can be sourced from the DWP's Stat-Xplore online data selection tool. The bulk of the transition to Universal Credit is estimated to be completed by the 2024/25 tax year with the migration of Employment and Support Allowance (ESA) cases estimated to continue until the 2028/29 tax year. Further information on Universal Credit statistics can be found via this link.
16-64 denominators
The working age proportions for persons aged 16 to 64 years have been produced using 2015 to 2020 rebased mid-year population estimates and the 2021 mid-year population estimates. Mid-year population estimates for 2021 have been used from January 2021 onwards. The number of people on Universal Credit for the Lancashire-12 and Lancashire-14 areas have been calculated by summing the relevant local authority area figures.
Universal Credit full service rollout
Lancaster became a Universal Credit full service area in July 2016 – the first in the Lancashire-14 area. This means that persons can process claims online, rather than via the phone. More complex claims are also processed. The result was an acceleration in the number of persons claiming Universal Credit in Lancaster. This was followed by
- Burnley, May 2017
- West Lancashire, December 2017
- Blackburn with Darwen and Hyndburn, February 2018
- Preston and South Ribble, March 2018
- Chorley, April 2018
- Pendle, Ribble Valley and Rossendale, July 2018
- Fylde, Wyre and Blackpool, September 2018
Data revised downwards from January 2016 to December 2018
The DWP has identified problems relating to individuals with multiple spells on Universal Credit (UC).
The DWP has now resolved the above issues. As a result, the number of people on Universal Credit has been revised downwards from 8 January 2016 to 13 December 2018.
The DWP recommends that users do not use previously published Universal Credit Official Statistics for People on Universal Credit made between 8 January 2016 and 13 December 2018. Further details are contained the Statistical Notice published by the DWP on 19 February 2019.
Analysis for May 2024 (revised data)
Lancashire-12 summary
Total number of people on Universal Credit
In May 2024, the total number of people on Universal Credit (UC) in the Lancashire-12 area (L-12) was 134,358 persons or 17.8% of persons aged 16-64 (GB=16.5%).
Over the month, the total increased by 679 persons or 0.5% (GB=+1.2%) and the proportion increased by 0.1 percentage point (pp) (GB=+0.2pp). Over the year, the total increased by 21,390 persons or 18.9% (GB=+14.0%) and the proportion increased by 2.9pp (GB=+2.0pp).
People on Universal Credit 'Not in employment' category
In May 2024, the Lancashire-12 'Not in employment' UC category was 82,263 persons, or 10.9% of persons aged 16-64 (GB=10.2%). This category accounted for 61.2% of the UC total (GB=61.9%).
Over the month, it increased by 335 persons or 0.4% (GB=+0.9%) and the proportion increased by 0.1pp (GB=+0.1pp). Over the year, it increased by 13,007 persons or 18.8% (GB=+13.9%) and the proportion increased by 1.7pp (GB=+1.3pp).
People on Universal Credit 'In employment' category
In May 2024, the Lancashire-12 'In employment' UC category was 52,081 persons or 6.9% of persons aged 16-64 (GB=6.3%). This category accounted for 38.8% of the UC total (GB=38.1%).
Over the month, it increased by 318 persons or 0.6% (GB=+1.7%) and the proportion rose by 0.1pp (GB=+0.1pp). Over the year, it increased by 8,376 persons or 19.2% (GB=+14.0%) and the proportion increased by 1.1pp (GB=+0.8pp).
People on Universal Credit and proportions (% of persons aged 16 to 64), May 2024 (revised)
Note: Denominators and proportions - see above 'Things you need to know about the data'.
Source: People on Universal Credit via DWP via Stat-Xplore, and Nomisweb (Population estimates / Projections) datasets for rebased 2015 to 2021 mid-year population estimates.
Lancashire-14 summary
Total number of people on Universal Credit
In May 2024, the UC total in the Lancashire-14 area, was 185,015 persons or 19.7% of persons aged 16-64 (GB=16.5%).
Over the month, the total increased by 981 people or 0.5% (GB=+1.2%) and the proportion increased by 0.1pp (GB=+0.2pp). Over the year, the total increased by 29,142 persons or 18.7% (GB=+14.0%) and the proportion increased by 3.1pp (GB=+2.0pp).
People on Universal Credit 'Not in employment' category
In May 2024, the Lancashire-14 'Not in employment' UC category was 114,698 persons or 12.2% of persons aged 16-64 (GB=10.2%). This category accounted for 62.0% of the UC total (GB=61.9%).
Over the month, it increased by 397 persons or 0.3% (GB=+0.9%) and the proportion was unchanged (GB=+0.1pp). Over the year, it increased by 17,692 persons or 18.2% (GB=+13.9%) and the proportion increased by 1.9pp (GB=+1.3pp).
People on Universal Credit 'In employment' category
In May 2024, the Lancashire-14 'In employment' UC category was 70,303 persons or 7.5% of persons aged 16-64 (GB=6.3%). This category accounted for 38.0% of the UC total (GB=38.1%).
Over the month, it increased by 551 persons or 0.8% (GB=+1.7%) and the proportion increased by 0.1pp (GB=+0.1pp). Over the year, it increased by 11,442 persons or 19.4% and the proportion increased by 1.2pp (GB=+0.8pp).
Yearly percentage change in total Universal Credit numbers
All Lancashire-14 areas saw increases to their total Universal Credit numbers over the year.
Eleven of the Lancashire-14 areas saw yearly percentage increases to their totals above the GB increase (+14.0%). Pendle (+33.9%, up 3,713 persons), Blackburn with Darwen (+28.9%, up 5,808 persons) and Hyndburn (+22.7%, up 2,382 persons) recorded the largest percentage increases in the area.
Composition of the yearly change by Universal Credit sub-category
Much of the increase to the total number of people on Universal Credit since early 2022 has been driven by those in the 'Not in employment' UC category. However, since the summer/autumn period of 2023, it is noticeable that the number of people within the 'In employment' UC category have also been rising at an accelerated pace (although this has tailed off a little over the last couple of months). The yearly percentage increases for both the 'Not in employment' and 'In employment' UC categories are now similar – about 18% to 19% in the Lancashire-12 and Lancashire-14 areas, and 14% in Great Britain.
All Lancashire-14 areas recorded yearly increases to the 'Not in employment' UC category and the 'In employment' UC category.
The accelerated pace of the increases are particularly evident in Blackburn with Darwen and Pendle over the last year.
In ten of the Lancashire-14 areas, the percentage increase in the 'Not in employment' UC category was above the GB rise of 13.9%. Pendle saw the largest percentage increase (+35.2%, up 2,458 people), followed by Blackburn with Darwen (+25.1%, up 3,331 people). Blackpool saw the lowest yearly percentage rise in the area (+9.4%, up 1,354 people). The Lancashire-14 yearly percentage increase was 18.2% (up 17,692 people). The Lancashire-12 yearly percentage increase was 18.8% (up 13,007 people).
For the 'In employment' UC category, eleven of the Lancashire-14 areas recorded percentage increases that were greater than the GB rise of 14.0%. Blackburn with Darwen had the greatest percentage increase (+36.2%, up 2,478 people), followed by Pendle (+31.8%, up 1,260 people). The lowest yearly percentage rise in the area was in Blackpool (+7.1%, up 588 persons). The Lancashire-14 yearly percentage increase was 19.4% (up 11,442 people). The Lancashire-12 yearly percentage increase was 19.2% (up 8,376 people).
Impact of Covid-19 on Universal Credit: March 2020 to May 2020
Owing to the initial lockdown on 23 March 2020 in response to the coronavirus pandemic, the UK economy subsequently experienced a sharp, deep recession. Recovery of the economy to its pre-pandemic level was achieved in Quarter 1 (January to March) of 2022. The economic downturn was reflected in a substantial rise in the number of people on Universal Credit between March 2020 and May 2020.
In the Lancashire-12 area, UC total numbers rose from 60,594 in March 2020 to 99,812 in May 2020 (+39,218 persons, +64.7%). The UC total proportion rose from 8.1% to 13.4% (up 5.3 percentage points).
In the Lancashire-14 area, numbers increased from 84,349 in March 2020 to 137,072 persons in May 2020 (+52,723 persons, +62.5%). The UC total proportion increased from 9.1% to 14.9% (up 5.8 percentage points).
In Great Britain, total numbers rose from 3,011,519 in March 2020 to 5,255,668 persons in May 2020 (+2,244,149 people, +74.5%). The UC total proportion rose from 7.4% to 12.9% (up 5.5 percentage points).
Data
People on Universal Credit, May 2024 data (revised), plus monthly and yearly changes - and change from March 2020 (XLSX 33 KB)
Page updated 18 and 19 July 2024