'Eye-watering' rise in number of benefit claimants in Badenoch and Strathspey
There has been an “eye-watering” rise in people in the strath claiming Universal Credit, with the number more than doubling since the start of the Covid-19 pandemic.
Latest figures from the Department for Work and Pensions, highlight the devastating financial impact the virus is having, especially on parts of the Highlands, which rely heavily on tourism.
There has been almost a 75 per cent increase in Universal Credit claimants throughout the region, when comparing take-up in March 2020 with last December.
The strath has had one of the largest hikes in uptake of the benefit.
The number of claimants for Badenoch and Strathspey (South) in March, last year, was 118, but this had risen to 267 people by December, a surge of 136.27 per cent.
The respective figures for B&S North were: 137 (March 2020) and 303 (December 2020) (121.17 per cent) and B&S Central 195 (March 2020) and 421 (December 2020) (115.90 per cent).
In March 2020, 11,318 people were claiming Universal Credits across the Highlands, but just nine months later this had soared to 19,899 people.
Highland Council convener Bill Lobban said the figures are a stark reminder of the effect Covid is having on the lives of people in the strath, with “the impact of the disaster that is Brexit” yet to be felt.
He said: “Until last year we were quite proud of the huge number of jobs that had been created, but this horrible pandemic has had drastic consequences especially for those employed in the tourism sector.
“Hopefully, with the massed vaccination programme now getting into full swing, we will see a substantial upturn in the summer, but while some businesses will recover quickly, some – and the valued jobs they provided – may be lost forever.
“On a positive note, there is help out there and no one should fear asking for it.”
Fellow local councillor Muriel Cockburn said the next year was going to be challenging: “I am really concerned and upset as this continuing need and the impact this is having on individuals and families.
“As a local authority in the short-term we need to ensure that we have systems in place to offer support in a timely manner.
“I hope that the upcoming council budget factors in job creation and investment.”
While the number of people claiming the benefit has increased significantly region-wide, 49 out of 56 areas have risen by 50 per cent or more.
Nineteen areas have increased take-up levels in excess of 100 per cent, with the largest rise in Skye North West of 185 per cent.
Councillor Alasdair Christie, council depute leader and recovery board chairman, said: “This scale of increase in the take-up of Universal Credit simply hasn’t been seen before, and demonstrates just how severe the financial situation is for many Highland residents.
“The fact that more than a third of the 56 geographical areas within Highland are experiencing such eye-watering increases of more than 100 per cent in Universal Credit claimants, is a real cause for concern, and underlines the disproportionate financial impact of Covid-19 for an increasing number of our citizens.”
Cairngorms Business Partnership chief Mark Tate said the number now claiming the benefit was “devastating for our communities though, unfortunately, not surprising”.
But he said: “There is hope, and when we are allowed to reopen our world-class visitor and hospitality sectors, we are confident our guests will return.
“Working with our members, we are in the process of advertising over 30 Kickstart jobs to get young people back into work.
“We need two things, we need a road map out of lockdown so businesses can properly plan to welcome visitors back with confidence, and businesses need more support so they still exist to recover and provide employment.
“Many businesses, particularly the likes of cleaning companies and launderettes who supply to the visitor economy, have had very little support, and without it, some may not survive, creating more unemployment and significantly restricting our recovery.”
David Richardson, the Federation of Small Businesses’ regional development manager, said: “In a frighteningly short period of time, the strath and the wider Highlands have been transformed from buoyant, low unemployment economies, into largely dormant, comparatively high unemployment problem areas.
“This is very bad for everyone, both financially and psychologically....
"The strath needs vibrant, year round businesses. So what do we do about it?
"We know from last summer’s experiences that visiting the countryside is far more alluring to people locked up for months than visiting city centres, and we also know that high visitor numbers and lack of awareness can seriously strain rural infrastructure.
"However, rather than seeing this as a threat, we should see it as an enormous opportunity.
"Now is the time, while domestic consumer demand is high, for governments and the private sector to invest in demand-led rural tourism, thereby rebooting local economies, sustaining and creating more quality jobs, and rebalancing populations.”
Universal Credit benefit was first introduced by DWP to Inverness Jobcentre in 2013.
