Demand for out-of-work benefits in Peterborough remains well above pre-pandemic levels

Office for National Statistics data shows 9,470 people were claiming out-of-work benefits as of December 10, compared to just 4,805 in early March – an increase of 4,665.

That is 7.6 per cent of the area’s working-age population, up from 3.8 per cent.

The figures include those aged 16 to 64 on Jobseeker’s Allowance and some Universal Credit claimants, who are unemployed and seeking work or employed but with low earnings.

In December 2019, there were 4,250 claimants in Peterborough.

Those on benefits at the end of 2020 were among roughly 205,000 across the East of England.

National figures, which are adjusted to account for seasonal changes, show around 2.64 million people across the UK were seeking help at the start of December – up from 1.24 million in March and 1.23 million a year earlier.

The ONS cautioned that changes to Universal Credit in response to the virus mean more people can get the benefits while still being employed, which could affect the figures.

It also said a small number of people who can claim both JSA and UC could be counted twice.

Separate ONS figures show the country’s unemployment rate rose to an estimated five per cent in the three months to November – the highest it has been since early 2016.

More than 200,000 workers lost their jobs over the three months, as the number of unemployed hit a five-year high of 1.72 million.

The measure counts people without a job who have been seeking work within the last four weeks and are available to start work within the next two weeks, not the proportion of the total population who are unemployed.

“This crisis has gone on far longer than any of us hoped – and every job lost is a tragedy,” Chancellor Rishi Sunak said.

“Whilst the NHS is working hard to protect people with the vaccine, we’re throwing everything we’ve got at supporting businesses, individuals and families.”

But research published on Wednesday, January 27 warns 2.5 million jobs are in jeopardy due to businesses at risk of going bust in the coming months.

The report by the Centre for Economic Performance and the Alliance for Full Employment says more than 900,000 firms could go bankrupt as many support programmes expire at the end of March and April.

Former prime minister Gordon Brown, who launched the AFFE last year, urged the Government to introduce measures in the March Budget “to offer new hope to what will otherwise be dying firms”.

He said: “Governments cannot afford to be behind the curve – especially in a crisis. They have to be at least two steps ahead.

“But today the fate of thousands of small businesses hangs in the balance.

“Millions face an uncertain future after March when the furlough is to end.

“Youth unemployment is already at record levels – all concerns that a forward-looking government should be dealing with today.”