The proportion of people claiming unemployment-related benefits in Somerset has risen to 2.6%, according to new figures from the Office for National Statistics (ONS).

The latest data, published this week but reflecting figures from December 2024, shows an increase of 700 claimants in Somerset compared to the previous month.

Despite employment levels rising year on year, the overall employment rate has fallen slightly, with a total of 9.3 million people aged 16-64 now classified as "economically inactive" across the UK. The report also highlights that job vacancies remain above pre-pandemic levels.

The overall claimant count is also 514,000 above the count of 1.23 million in March 2020, before the Covid pandemic took effect on the labour market.

National trends and government changes

Across England, the unemployment count stands at 1.5 million, with 66,025 out of work in Wales, 107,417 in Scotland, and 39,375 in Northern Ireland.

The region with the highest number of benefit claimants outside of London (357,490) is the North West (208,285).

However, the claimant rate percentage sees the West Midlands (5.6%) as the highest outside of London (5.9%).

According to the ONS, "the Department for Work and Pensions made changes to the criteria for claiming Universal Credit in May 2024, and the ONS reported this is 'likely to increase the claimant count over a six-month period'."

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The government's most recent figures show that both London and the West Midlands saw the biggest annual increase in unemployment-related benefits claimants, rising by 14% and 12% respectively.

Birmingham has the highest ratio of people on unemployment benefits at 10.8%, followed by Newham (8.5%), Barking and Dagenham (8.3%), Bradford (8.2%), Brent (7.9%), Wolverhampton (7.8%), Haringey (7.7%), Enfield (7.6%), Oldham (7.5%) and Hackney (7.5%).

Impact of Universal Credit changes

The increase in claimants follows changes to Universal Credit rules introduced in May 2024 by the Department for Work and Pensions (DWP). The reforms require people working fewer than 18 hours a week to increase their job search.

The DWP explained at the time:

"The previous government introduced broad reforms to the welfare system from May last year.

"It included claimants working fewer than 18 hours a week now expected to substantially increase their job search.

"The Department for Work and Pensions said the rule change would mean 180,000 Brits would have to work more.

"However, it also promised it was 'radically expanding' the support available to help people 'on their journey off benefits', former DWP secretary Mel Stride said."

However, the changes have been criticised by charities such as Turn2Us, which urged the government to reconsider the policy, arguing it would have a "drastic impact" on people with long-term health conditions.

What's happening in Somerset?

While Somerset's 2.6% claimant rate is below the national average, it reflects a continuing rise in unemployment support in the county. The increase comes despite local job vacancies remaining high in many sectors.

With benefits set to rise by just 1.7% in April 2025, the increase in claimant numbers will likely remain a key issue in Somerset and across the country.

Chancellor Rachel Reeves has confirmed that the Labour government will continue with the reforms to the Work Capability Assessment set out by the Conservatives. She said the government would "Restore stability to our economy and begin a decade of national renewal."

The full impact of recent Universal Credit changes is expected to become clearer over the next six months, with further employment figures set to be released in the coming weeks.