Sharp rise in Melton claimants for Universal Credit

New figures released by the Department for Work and Pensions show there were 3,514 claimants for the social security benefit in July compared to 1,909 in the same month a year before.

There was a steady rise of claims after lockdown came in during March, the figures jumping to 2,980 in April.

Neighbouring towns had an even sharper increase, however, with Loughborough rising 167 per cent in the year to July, Coalville 146 per cent and Market Harborough 125 per cent.

Claims across the Melton Borough Council area - combining people on Universal Credit who are seeking employment and those requesting New-Style Jobseekers Allowance - have also more than doubled in a year.

The figures show there were 605 claimants across the borough in July 2019 and 1,335 a year later.

Much sharper increases in this figure were recorded in some neighbouring districts, however, with Harborough seeing a 247 per cent rise and Rutland a 224 per cent jump.

The statistics have been published as the government launches its new £2 billion Kickstart scheme which aims to ensure young people at risk of long term unemployment have a future of opportunity and hope by creating quality, government-subsidised jobs across the UK, to help the economy recover from the impact of coronavirus.

Employers who sign up will be able to offer youngsters aged 16 to 24, who are claiming Universal Credit, a six-month work placement that is fully funded by the government, which will pay 100 per cent of the young persons’ age-relevant National Minimum Wage, National Insurance and pension contributions for 25 hours a week.

The employer can top up, if they chose to, and the government will also pay the employer £1.500 for each young person they take on, to support any training or associated costs like uniforms that they might incur when setting up the scheme.

Rutland and Melton MP, Alicia Kearns, said: “This ground breaking scheme isn’t just about kickstarting our country’s economy – it’s an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind due to the pandemic.

“This scheme will open the door to a brighter future for a new generation and ensure Rutland and Melton bounces back stronger from COVID-19.

“I urge local employers to sign up now.”

Commenting on the new Kickstart scheme, Scott Knowles, chief executive of East Midlands Chamber, said: “We know that young people have been worst affected by the pandemic, so this fully-funded scheme will help employers with tight cashflow bring them into the workplace and develop new talent for the future.

“To be successful, Kickstart needs to create long-term, quality employment opportunities and ensure that both businesses and employees are fully supported throughout work placements.

“Apprenticeships in particular will play a crucial role in equipping young people for the future as they offer long-term training that also encourages businesses to invest their time and money.”

But there has been some criticsm of the scheme from small businesses, who feel it is more alligned to the needs of larger businesses.

Federation of Small Businesses (FSB) national chair, Mike Cherry, said: “Without further work, the scheme will leave many without any employment support after waiting for it for so long.

“Crucially it is more difficult to access for those hiring fewer than 30 roles through the scheme, who as it stands will need to find intermediaries.

“To hire 30 individuals is just beyond the means of most small businesses, many of which have far fewer employees or don’t have the HR support on hand to introduce that number of new employees.

“Small firms, who are the largest employers across the business landscape, have long expressed interest in this scheme and will be disappointed to find it harder than expected to take part.

“The government should issue guidance, and soon, to make it easy for small business organisations to become intermediaries, or a direct application route for small firms.”