York central sees 73% increase in Universal Credit claims during pandemic

In York Central, the number of people claiming Universal Credit rose from 1,422 in February to 2,466 in August, representing the fourth highest increase of any constituency in England.

Bermondsey and Old Southwark in London saw the highest increase, (165 per cent) followed by Cambridge (110 per cent) and Bristol West (85 per cent).

The data was obtained by Generation Rent as part of research into how the pandemic has impacted private renters in the country.

It was discovered that increases in Universal Credit were highest in areas where the gap between the average rent and local housing allowance (LHA) was widest, indicating that the pandemic has hit areas hardest where the benefits system is least generous.

York Central is one of these areas, with the average monthly cost of renting a two-bed standing at £750, while LHA for a two-bed is just £546.11 per month - a shortfall of £203.89.

Leeds North West saw an almost identical spike to York Central in Universal Credit claims, with a 73 per cent rise between February and August. The monthly gap between LHA and average rent, however, was slightly lower than York’s - at £154.28.

Sheffield Central, (69 per cent rise) Sheffield Hallam (50 per cent rise) and Wakefield (50 per cent rise) saw the next highest increases in Universal Credit claims across Yorkshire.

LHA rates, along with income, are used to work out how much Universal Credit or housing benefit private renters receive.

LHA is designed to cover the rent on the cheapest 30 per cent of homes in a local area, but Generation Rent estimates that around 538,000 private renter households in England receive LHA but do not live in the cheapest 30 per cent of homes.

Across England, this represents a shortfall between benefits and rent worth £53m per month, or £636m over the course of a year.

Rachael Maskell, MP for York Central, puts the steep increase in Universal Credit claims down to the city’s economy being “predicated on the hospitality, retail and tourism sectors”, which have been particularly hard-hit by the pandemic:

“We’ve got 30,000 people working in the retail hospitality and tourism sector...many of these companies have not had full support from the government.

“We also have a high number of self-employed people in York - many have been excluded from any government support and have had to turn to Universal Credit to get help”.

She adds that she has been “lobbying the government extensively” for investment in future jobs as well as further support to struggling individuals and local businesses.