Universal Credit: People in Employment
What assessment his Department has made of trends in the level of people in employment claiming universal credit.
The Department publishes data on universal credit and keeps labour market trends under review. In January 2026, 3.1 million people were on universal credit in employment, representing 37.8% of all claimants. Universal credit is designed to support people into and in work, allowing individuals to move into employment while continuing to receive support as their earnings increase.
As the proud parliamentary lead for the Right To Food UK Commission, I have heard powerful testimony from workers employed by large, profitable companies across the UK who are paid so little that they are driven to hardship, hunger and dependence on universal credit just to put food on the table. The DWP assesses that 1.2 million people on universal credit are working to their capacity, with their income topped up by the state because their wages are so low. That figure has increased threefold in six years. Does the Minister agree that the taxpayer should not be left to subsidise poverty pay paid by companies that employ more than 250 people? Will the Government require those companies to report on how many of their workers rely on universal credit because their wages are so low?
I acknowledge what my hon. Friend says and I commend him for his work on the Right to Food UK Commission. I know that many people who work very hard doing important work in sectors like retail and care do not earn enough, so at the end of the week there is insufficient money and they rely on foodbanks. I invite my hon. Friend to come and talk to me about this so that we can discuss what we might be able to do about it.
The University of Cumbria has shown that average hill farm incomes are less than the national minimum wage in our communities and beyond. Despite their poverty, farmers of all kinds and small businesses often cannot claim universal credit at all because of the way that universal credit is assessed on the basis of monthly income, when they might have fluctuating annual income. Will the Minister meet me and farmers’ representatives to ensure that farmers in poverty get the support that they deserve?
Yes, I am very happy to meet the hon. Gentleman.