Britain’s top 10 benefit hotspots revealed – where does your hometown rank?
THE country’s benefit hotspots can today be revealed in a Sun Online study – as fears grow over the impact Covid-19 will have on the economy.
New stats show the number of people having to claim universal credit has leapt 1.4million in the past three months.
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Our map reveals in many areas more than one in ten people are now having to rely on the state.
The highest percentage of claimants is in Blackpool where a staggering one in eight are now in receipt of benefits.
But all areas of the country have seen massive rises amid increasing concerns the country is facing its worst jobs crisis since the 1920s.
In total, 2.7m people are now claiming unemployment benefits, an increase of 1.4m from March, according to figures from the Office for National Statistics (ONS).
Tony Wilson, director of the Institute for Employment Studies, said: “If the public health crisis is just starting to ease, these figures show that the unemployment crisis is only just beginning.
“It’s clear, too, that this crisis is hitting many poorer areas hardest.”
The regional impact has changed over time.
According to analysis by the Centre for Cities, during the first part of lockdown unemployment rose faster in economically weaker towns and cities, but in the past month places with stronger economies have seen larger increases in claims, which suggests that the economic impact of the coronavirus outbreak has taken longer to spread south.
Last week it was revealed the UK economy shrank by 20.4 per cent in April due to the coronavirus lockdown – the biggest monthly fall on record.
The drop in GDP was the biggest single monthly fall since records began in 1997, the Office for National Statistics (ONS) said.
It’s clear that this crisis is hitting many poorer areas hardest
Tony Wilson, Director of the Institute for Employment Studies
The March plunge is also 30 times the average month on month decline during the global financial crisis in 2007/2008, the British Chambers of Commerce said.
It has also been revealed 600,000 Brits have already lost their jobs during lockdown with unemployment now set to hit three million.
Experts fear the figures will in the coming months reveal the biggest drop in employment on record, laying bare the impact of the coronavirus lockdown.
Early estimates from the Office for National Statistics suggest 163,000 people lost their jobs in May, on top of 449,000 the previous month.
The ONS explained the numbers suggested a 2 per cent fall in paid employees since the country went into lockdown on March 23.
Employment also fell by 0.8 per cent in April.
The ONS deputy national economic statistician Jonathan Athow said: “The slowdown in the economy is now visibly hitting the labour market, especially in terms of hours worked.
“Early indicators for May show that the number of employees on payrolls were down over 600,000 compared with March.”
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Minister for Employment Mims Davies claimed the figures showed the devastation the pandemic was having on Britain’s workers.
She said at the time: “The figures are starting to show the impact of Covid-19 on our economy, but our furlough scheme, grants, loans and tax cuts have protected thousands of businesses and millions of jobs, setting us up for recovery.
“By responding to the needs of communities across the UK they will be at the heart of our revival and renewal, helping people find new roles and move forward with their lives.”