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New research funded by the Nuffield Foundation has found that a decades-long decline in the proportion of people in households receiving benefits was partially reversed during the coronavirus pandemic, driven by a surge in the number of young adults in need. help.
The proportion of adults aged 16 to 24 receiving benefits increased by two-thirds, from nine to 15% between February 2020 and 21, according to the analysis of UK government figures by the Resolution Foundation.
The share of 25-29 year olds receiving social allowances rose from 17% to 24%, while 27% of 30-59 year olds claimed allowances in February 2021, compared to 22%. Immediately before the pandemic, 62% of the UK population lived in households that received at least one benefit.
These included family allowances, state pensions and tax credits, as well as other working age benefits such as the Personal Independence Payment (PIP). That’s down from 72% in 2005, according to the think tank, Age-old or new-age report.
This decline was brought about by changes such as the abolition of family allowances for high incomes, the increase in the state retirement age and the increase in employment and income, which means that some families were no longer eligible, he said.
But the “staggering” wave of new claims during the pandemic has partly reversed that trend, with the Resolution Foundation estimating that 64% of people now live in households receiving benefits.
The number of families receiving income-related benefits of working age increased by 1.4 million in 12 months to reach 7.5 million in February 2021.
He also identified a “potentially worrying” increase in the number of older applicants applying for universal credit, with 34,000 people over the age of 50 receiving benefits since February.
The Resolution Foundation said that although the number of families receiving benefits has declined in recent months, the number of families receiving benefits is expected to remain above pre-crisis levels next year.
With a record number of people receiving universal credit payments, he says the UK government’s decision to remove the temporary £ 20 per week increase from September will have “a bigger impact than ever on people’s living standards. families across the country ”.
Karl Handscomb, Senior Economist at the Resolution Foundation, said: “After decades of decline in the share of families receiving benefits, the Covid-19 crisis has led to an increase in claims, with 1.4 million more families now calling for support.
“The surge in pandemic benefits was sparked by young people – a group that has traditionally been the least likely to claim benefits – and reflects the fact that they have been by far the hardest hit by the economic crisis in Covid. “
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Information on income-related benefits, tax credits, contribution-based benefits, counseling tax reduction, care allowance, universal credit, how they are calculated and how your benefits will be affected if you start working or change your working hours
Information on income-related benefits, tax credits, contribution-based benefits, local tax reduction, care allowance, universal credit and how your benefits will be affected if you start working
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