Official Statistics

Alternative Claimant Count statistics January 2013 to August 2022

Published 11 October 2022

Applies to England, Scotland and Wales

This is the latest release of statistics to 11 August 2022 and includes revisions to previous statistics. Figures are seasonally adjusted unless otherwise stated.

This is the final release of this statistical series. The majority of unemployment-related benefit claimants have now migrated to Universal Credit and trends have converged to the Office for National Statistics (ONS) Claimant Count (available at: Nomisweb.co.uk) which provides a timelier and more frequent series on claimant unemployment. Further details are provided in the What you need to know section.

1. Main Stories

In the United Kingdom, the number of people claiming unemployment related benefits in August 2022 was 1.37 million.

This is a:

• 0.4% increase in the last month
• 4.4% decrease in the last quarter
• 31.6% decrease in the last year
• 9.2% increase in the last 5 years

Some claimants of unemployment related benefits are wholly unemployed and seeking work, others may be employed but with low earnings that make them eligible for unemployment related benefit support. Of the 1.37 million people claiming unemployment related benefits in August 2022, 14.5% had evidence of earnings or hours worked. In comparison, this employment rate was 14.3% in August 2021 and 15.5% in August 2017.

In the latest quarter (June 2022 to August 2022) average monthly on-flows were 231 thousand and average monthly off-flows were 236 thousand. Over the last 24 months off-flows have generally been higher than on-flows, this is driving a fall in the number of people claiming unemployment related benefits. On-flows are returning to pre-pandemic levels while off-flows remain slightly higher (220 thousand on-flows and 212 thousand off-flows monthly average December 2019 to February 2020).

The claimant unemployment rate (as a proportion of the population aged 16 to 64) in August 2022 was 3.3%. The rate has decreased by 1.5 percentage points from August 2021. In the five years from August 2017, the rate has increased by 0.3 percentage points.

Of the 1.37 million people claiming unemployment-related benefits in the United Kingdom in August 2022:

• 81,000 (6%) were claiming Jobseeker’s Allowance and 1.14 million (83%) were in the Searching for Work conditionality group under Universal Credit – the remaining 147,000 (11%) were ‘additionals’

• 774 thousand (56%) were male and 598,000 (44%) were female – in comparison, males represented 57% in August 2021 and 52% in August 2017

• 216,000 (16%) were young people aged 16 to 24 – this compares to 334,000 (17%) in August 2021, and 189,000 (15%) in August 2017

At regional level:

• the highest claimant unemployment rate in August 2022 was for London at 4.4%
• the lowest was for the South West at 2.3%
• all regions saw claimant unemployment rates fall over the year

At local authority level (figures not seasonally adjusted):

• the claimant unemployment rate ranges from 0.9% in Isles of Scilly to 7.7% in Birmingham
• all local authorities saw a decrease in the claimant unemployment rate between August 2021 and 2022 (with the exception of City of London).

2. What you need to know

This is the final release of this series. The Alternative Claimant Count (ACC) statistics have always been presented as an interim series to complement the ONS Claimant Count. Four years after they were first published and now that the majority of unemployment-related benefit claimants (89%) have migrated to Universal Credit or new-style Jobseeker’s Allowance, the series now has marginal value as trends have converged to the ONS Claimant Count. The ONS Claimant Count, released monthly, provides a timelier and more frequent series (available at: Nomisweb.co.uk). The historic ACC statistics will continue to be available on the GOV.UK website in the collection of ACC statistics.

The Alternative Claimant Count measures the number of people claiming unemployment related benefits. Before 2013 this was simply the number of people claiming Jobseeker’s Allowance. However, since the introduction of Universal Credit from April 2013 the count began to incorporate Universal Credit claimants placed in the ‘Searching for Work’ conditionality group.

Under Universal Credit, a broader span of claimants are required to look for work than under Jobseeker’s Allowance. This is a feature of the design of Universal Credit which assigns claimants to conditionality groups that translate to the work-related tasks the individual must do in order to fulfil entitlement conditions. The Searching for Work conditionality group comprises people who are not working, or have very low earnings. The claimant is therefore required to take action to secure work or better paid work. Including these claimants has the effect of increasing the Office for National Statistics (ONS) measure of the Claimant Count irrespective of how the economy performs.

To address this, these Alternative Claimant Count statistics measure the number of people claiming unemployment related benefits by modelling what the count would have been if Universal Credit had been fully rolled out since 2013 (when Universal Credit began) with the broader span of people this covers, comprising:

1. Jobseeker’s Allowance.
2. Universal Credit - Searching for Work conditionality (excluding those on the health journey pre-Work Capability Assessment).
3. Estimates of those additional claimants who would have been Searching for Work under Universal Credit had it existed over the entire time period from 2013.

The Alternative Claimant Count series is available between January 2013 and August 2022. Over a longer period, the Labour Force Survey provides a consistent measure of unemployment at national and regional level. Trends over time for local areas can be considered using the Claimant Count prior to 2013, and the Alternative Claimant Count from 2013. However the figures cannot be directly compared as they are defined differently.

Claimant unemployment has been falling over the last year

Comparisons between Alternative Claimant Count, ONS Claimant Count and Labour Force Survey, United Kingdom, August 2007 to August 2022, seasonally adjusted.

Source: DWP Alternative Claimant Count statistics and ONS Claimant Count statistics and Labour Force Survey.

To understand the impact of the differences between the two measures, Newcastle-upon-Tyne (which was one of the first local authorities to roll out Universal Credit Full Service to new claimants in May 2016) shows a sharp rise in claimant unemployment as more people were brought into Searching for Work conditionality. But this was irrespective of changes in the local labour market and gave misleading rises in local unemployment estimates, which the Alternative Claimant Count controls for and shows a much flatter trend.

DWP Alternative Claimant Count controls for the rollout of Universal Credit

Newcastle-upon-Tyne local authority – Claimant Count and Alternative Claimant Count comparisons, August 2013 to August 2022, not seasonally adjusted.

Source: DWP Alternative Claimant Count statistics and ONS Claimant Count statistics.

It is possible that the Claimant Count can surpass the Alternative Claimant Count in local areas, most usually areas where Universal Credit had been rolled out early. The Alternative Claimant Count includes estimates of those additional claimants who would have been Searching for Work under Universal Credit had it existed over the entire time period from 2013, but removes claimants on the health journey pre-Work Capability Assessment. Initially, this will cause the Alternative Claimant Count to show larger figures than the Claimant Count, as there will be more additional claimants included than health journey cases removed. However, as Universal Credit rolls out over time and the additional claimants begin to transition to Universal Credit, this weighting begins to shift.

National and regional figures are seasonally adjusted. The purpose of this is to remove systematic calendar-related variation associated with the time of the year which could otherwise cause misinterpretation of trends within the data. This facilitates comparisons between consecutive time periods, rather than just year-on-year. Our approach to seasonal adjustment is consistent with the approach used by ONS for the Claimant Count. About these statistics contains more information about the process used.

Figures in this bulletin are rounded in accordance with the DWP rounding policy for statistics. Perturbed figures from the underlying data available on Stat-Xplore or in accompanying tables may not sum exactly to the rounded totals accordingly.

3. United Kingdom

In the United Kingdom, the number of people claiming unemployment related benefits in August 2022 was 1.37 million. This is a decrease of 31.6% from August 2021.

At August 2022, over 4 in 5 claimants of unemployment benefits were covered by the Universal Credit Searching for Work conditionality group (83%). In comparison, at August 2017 41% were in this group. As managed migration to Universal Credit continues, this rate will continue to rise whilst the rates for the other groups will continue to fall.

Numbers claiming unemployment related benefits have been falling and are returning to pre-coronavirus (Covid-19) levels

Number of people claiming unemployment related benefits by type of claimant, United Kingdom, January 2013 to August 2022, seasonally adjusted.

Source: DWP Alternative Claimant Count statistics.

The overall rate of people claiming unemployment related benefits as a proportion of the resident population aged 16 to 64 in August 2022 was 3.3%, a fall of 1.5 percentage points compared to August 2021 (4.8%) and 0.3 percentage points higher compared to August 2017 (3.0%).

Rates of people claiming unemployment related benefits have fallen over the last year

Monthly claimant unemployment rate by gender, United Kingdom, August 2013 to August 2022, seasonally adjusted.

Source: DWP Alternative Claimant Count statistics and ONS Claimant Count population statistics.

Gender

Although overall rates are falling, male claimants make up a greater proportion of unemployment related benefits. In 2013, 57% of claimants were male. Over time, that proportion began to gradually decrease to around 52% in 2018 but then increased sharply at the start of the coronavirus pandemic (58% in May 2020). At August 2022, men account for 56% of people on unemployment related benefits.

Male claimants make up a greater proportion of people claiming unemployment related benefits

Proportion of people claiming unemployment related benefits by gender, United Kingdom, August 2013 to 2022, seasonally adjusted.

Source: DWP Alternative Claimant Count statistics.

Age

Over the last year, all age groups have seen a fall in claimant unemployment. The biggest falls have been in the 20 to 24 and 25 to 29 age groups – these groups experienced the largest increases during the coronavirus pandemic. Because of this, there has been an upward shift in the age distribution of claimants on unemployment related benefits over the year. The proportion of claimants aged 16 to 29 has fallen from 30% at August 2021 to 28% in August 2022. Over this period, the proportion aged 30 to 44 increased from 37% to 39%.

Those aged 30 to 44 make up a greater proportion of people claiming unemployment related benefits compared to the same time last year

Proportion of people claiming unemployment related benefits by age group, United Kingdom, August 2021 and 2022, seasonally adjusted.

Source: DWP Alternative Claimant Count statistics.

Additionals

The additional group of unemployed claimants are estimates of those who would have been Searching for Work under Universal Credit had it existed over the entire time period from 2013. This covers:

• people who are not in work but previously claimed Housing Benefit only, this means did not claim Jobseeker’s Allowance
• people whose household previously claimed Child Tax Credit from HM Revenue and Customs (HMRC), but are not themselves earning more than the Universal Credit administrative earnings threshold; and nor do they have responsibility as the main carer for their child
• people who are the partner of a claimant of Employment and Support Allowance or Income Support, but who do not themselves have caring responsibilities, a disability or a limitation on their ability to work

Of the 1.37 million people claiming unemployment benefits in August 2022, 147,000 (11%) were ‘additionals’. This is a decrease of 38,000 (20%) on the previous year.

The majority of additional claimants are covered by two main groups. The largest group of additionals are those people not in work but claiming Housing Benefit only, followed by those claiming Child Tax Credits.

4. Regional

Of the 1.37 million people claiming unemployment benefits in August 2022, 19% (264,000) were living in London. The next highest region was the North West with 171,000 (12%), followed by the West Midlands with 157,000 (11%).

All regions saw decreases in claimant unemployment over the year. The largest percentage decreases were in Scotland (35%) and the South West (34%).

The highest claimant unemployment rate in the United Kingdom in August 2022 was for London (4.4%). The next highest was for the West Midlands (4.3%). The region with the lowest claimant unemployment rate was the South West (2.3%). For information on all regions, ODS tables are provided alongside this release.

All regions have seen a fall in claimant unemployment rates compared to the same time last year.

Claimant unemployment rate by region, United Kingdom, August 2021 and August 2022, seasonally adjusted.

Region	Claimant unemployment rate 2021 (%)	Claimant unemployment rate 2022 (%)
North East	5.4	3.6
North West	5.3	3.7
Yorkshire and The Humber	5.1	3.5
East Midlands	4.1	2.8
West Midlands	5.8	4.3
East of England	4.0	2.7
London	6.5	4.4
South East	3.8	2.6
South West	3.5	2.3
Wales	4.2	2.9
Scotland	4.2	2.8
Northern Ireland	4.0	2.9

Source: DWP Alternative Claimant Count statistics and ONS Claimant Count population statistics.

5. Local area

In August 2022, the highest claimant unemployment rate across all local authorities was Birmingham (7.7%). The next highest was Wolverhampton (6.7%) followed by Haringey (6.5%).

The local authorities with the lowest claimant unemployment rates were Isles of Scilly (0.9%), Richmondshire (1.2%) and Rutland (1.3%).

Rates are calculated by dividing the number of people claiming unemployment related benefits in a local authority by the population aged 16 to 64 in that local authority. They are calculated using the mid-2020 population estimates.

At a local level, unemployment rates are falling and are now returning to pre-coronavirus (Covid-19) levels

Claimant unemployment rate by local authority, United Kingdom, August 2019, 2020, 2021 and 2022 (based on August 2022 quintiles), not seasonally adjusted.

Source: DWP Alternative Claimant Count statistics and ONS Claimant Count population statistics.

When classifying claimant unemployment, data is split into quintiles (5 bands each containing approximately 76 local authorities), the top quintile is the group of local authorities with the highest levels of claimant unemployment.

The largest decrease was in Newham (down 3.7% percentage points), followed by Haringey and Brent (both down 3.1 percentage points).

6. Flows

Stat-Xplore includes newly published standardised statistics on:

On-flows: the number of people claiming unemployment related benefits in one month, who were not claiming in the previous month.

Off-flows: the number of people no longer claiming unemployment related benefits in one month, who were claiming in the previous month.

These statistics are available by month (February 2013 to August 2022), by local area, benefit type, age and gender. They offer some insights to users on monthly changes in a local area - for example the proportion of the Count which represents new claims in the previous month, and the off-flow rate - a measure of how the local labour market is performing.

Over the last 2 years there have been fewer on-flows than off-flows

Flows between claimant unemployment, United Kingdom, February 2013 to August 2022, standardised and seasonally adjusted.

Source: DWP Alternative Claimant Count on-flow and off-flow statistics.

In the latest quarter (June 2022 to August 2022) average monthly on-flows were 231 thousand and average monthly off-flows were 236 thousand. Over the last 24 months, off-flows have generally been higher than on-flows, this is driving a fall in the number of people claiming unemployment related benefits. On-flows are returning to pre-pandemic levels while off-flows remain slightly higher (220 thousand on-flows and 212 thousand off-flows monthly average December 2019 to February 2020).

The statistics released in Stat-Xplore allows users to produce local area analyses of flows over time.

7. About these statistics

Whilst the statistical series has now been discontinued, users should note that the series continues to hold value for time-series analyses of the components of claimant unemployment in the period 2013 to 2022, particularly at a local area level.

Estimates of claimants in work: Those claiming unemployment-related benefits may be wholly unemployed and seeking work, or may be employed but with low income or hours, that make them eligible for unemployment-related benefit support.

Enhancements to Universal Credit (UC) as part of the UK government’s response to the coronavirus mean that some additional people became eligible for unemployment-related benefit support, although still employed. The reduction in individual worker’s pay, as a result of the government schemes to protect businesses (Coronavirus Job Retention Scheme and Self Employed Income Support Scheme), may have also increased the number of employed people eligible for UC through their earnings falling below income thresholds. Some of these claims will fall within the work search conditionality group within UC.

Figures are estimates; using evidence of claimants’ earnings or hours worked in their latest assessment period to estimate the proportion who are jobless and those who are (or have recently been) working (excluding those self-employed). Figures include those with reported Pay as you Earn (PAYE) income in their most recent UC Assessment Period, those reporting part-time hours worked on Jobseeker’s Allowance, and hours worked or income from earnings from those on Child Tax Credits or Housing Benefit.

Like many economic indicators, the labour market is affected by factors that tend to occur at around the same time every year; for example, school leavers entering the labour market in July and whether Easter falls in March or April. In order to compare changes over time that are not driven by seasonal factors, the data has been seasonally adjusted. This allows for comparisons between consecutive time periods, for example, to the previous quarter or month. All figures stated in this statistical release are seasonally adjusted except where otherwise stated. Figures at local authority level and below are not seasonally adjusted as a meaningful multiplicative model which contains other metrics cannot be produced at such a low level of data.

The background and methodology document provides a fuller explanation on the purpose, coverage, construction, sources and limitations of the statistics. For example, this includes an explanation of why the back series starts in 2013 (linked to data availability) and on how the claimant unemployment rates have been calculated.

Lead Statistician: Steve Watkins

ISBN: 978-1-78659-383-2