The latest figure of 8.0 million for July 2025 is the highest level it has been since it was introduced in 2013, according to official figures published on Tuesday
Aine Fox and Ian Jones PA
21:32, 25 Aug 2025
The number of people on universal credit in July 2025 was 8.0 million, the highest level it has been
The number of people receiving universal credit (UC) has reached an unprecedented peak of eight million.
Claims surged by over a million within 12 months – rising from 6.9 million people in July last year.
The latest July 2025 figure of 8.0 million represents the highest level recorded since UC launched in 2013, based on official data released on Tuesday.
UC provides financial support for living expenses and is accessible to employed individuals on modest wages, alongside those who are unemployed or unable to work.
The dramatic increase over the past year has been fuelled almost exclusively by individuals not obligated to seek employment, with 3.7 million falling into this category in July – representing a 39% surge or one million rise compared to July 2024.
This group encompasses those in full-time education, individuals above state pension age, parents with children under 12 months old, and those deemed to have limited employment prospects.
The Labour administration has previously stated it “inherited a broken welfare system and spiralling, unsustainable benefits bill” from the Conservatives, and is developing reforms including stricter eligibility criteria for UC claims.
The number of employed individuals receiving UC climbed to 2.2 million in July, increasing marginally from 2.1 million the previous year.
Last month marked the first publication of UC claimant statistics categorised by immigration status. The Department for Work and Pensions (DWP) stated it had released the figures “following a public commitment to investigate and develop breakdowns of the UC caseload by the immigration status of foreign nationals in receipt of UC”.
The most recent data for July remains largely consistent with the preceding month, demonstrating once more that the vast majority (83.8%) of claimants were British and Irish nationals alongside those who reside or are employed in the UK without immigration limitations.
Within this cohort, 99.9% are UK citizens with approximately one-third in employment, according to the DWP.
Nearly one in 10 (9.6%) individuals receiving UC held EU Settlement Scheme settled status, granting them residency rights in the UK, whilst 2.7% possessed indefinite leave to remain in the UK.
Refugees represented 1.5% of UC claimants, with 0.7% comprising those who had arrived through safe and legal humanitarian pathways, including the Ukraine and Afghan resettlement programmes.
Roughly 0.9% of UC recipients held limited leave to remain in the UK, encompassing those with temporary immigration status, whilst the remainder had either ceased receiving UC payments or lacked recorded immigration status on digital systems, the DWP explained.
Conservative MP Helen Whately, who serves as the shadow work and pensions secretary, remarked: “Labour promised good jobs but are just putting people on more benefits paid for by ever higher taxes.”
A Government spokesperson stated: “As the majority of vulnerable customers started moving from legacy benefits on to the modernised universal credit system from July 2024, it is to be expected that the number of people claiming the benefit with no requirement to work will increase.
“Today’s figures are yet more evidence of the broken welfare system we inherited that is denying people the support they need to get into work and get on at work.
“That’s why we are fixing the welfare system so it genuinely supports those who can work into employment, backed by £3.8 billion investment in employment support over this Parliament, while ensuring there is always a safety net for the most vulnerable.”
