THE amount of people on Universal Credit in the UK has risen by a million in just one year, with experts warning “it’s a bleak outlook for families”.
There were 8.3 million people on Universal Credit in October 2025, up from 7.2 million people in October 2024, the Government announced today.
It was driven in part by claimants moving from legacy benefits under the Move to Universal Credit programme.
The report showed the proportion of people with “no work requirements” continues to increase, now at 49%.
Universal Credit households with children accounted for nearly half, 47%, of all households with a payment in August 2025.
However, approximately 3.1 million Universal Credit households, 46% of all Universal Credit households, had one or more deductions taken from their Universal Credit entitlement in August 2025.
This comes as unemployment figures released today hit 5% – the highest figure since 2021.
Financial experts questioned whether this level of people on Universal Credits is sustainable.
Sam Alsop-Hall, Chief Strategy Officer & Co-Founder at Birmingham-based Clive Henry Group, said: “The surge to 8.3 million people on Universal Credit is a flashing red light for Labour’s economic experiment.
“This is not social justice, it is slow-motion sabotage of ambition. Bar Stool Economics explains it perfectly: when you keep taking more from those who create and give more to those who don’t, eventually there is no one left to pick up the tab.
“The rise in people with no work requirements and the drop in childcare support show a system that traps people instead of empowering them. Labour’s obsession with redistribution over growth is draining the life out of the economy and crushing confidence in business.
“Britain does not need more bureaucracy or dependency, it needs belief in hard work, innovation and enterprise.
“Right now, that belief is being taxed out of existence with plans to tax us more on the horizon – on Remembrance Day I think it’s poignant to wonder if anyone would have fought for this?”
Michelle Lawson, Director at Fareham-based Lawson Financial, also slammed the government.
She said: “Some shocking statistics here showing Universal Credit is becoming a way of life for a good number of the public. Is this too generous? Can the handouts continue?
“With such a punitive economic climate and families struggling, turning to the public purse should be a last resort but so many rely on this for an income stream.
“With the upcoming Budget and the threat of a further rise in unemployment due to additional tax rises, I would expect these figures to increase, which is a bleak outlook not only for families but the flailing, out-of-touch Government.”
Pete Mugleston, Managing Director at Derby-based onlinemortgageadvisor.co.uk, said the upcoming Budget will be key to reversing the level of Universal Credit claimants.
He said: “We need to get Britain growing again by incentivising businesses to invest in people. Labour’s increases to National Insurance and the living wage may have been politically popular, but they’ve contributed to rising unemployment as firms hold back on hiring.
“The Budget must deliver a coherent plan to reduce energy costs, cut taxes and unlock investment from the UK’s vast pension market to fund growth and job creation.”
Photo by Terry Vlisidis on Unsplash
