By Local Democracy Reporter
Piers Meyler

THE number of people claiming unemployment benefits in Uttlesford has increased by almost 250 per cent – the highest increase in Essex.

But the effects of the lockdown and coronavirus are also being felt acutely in Harlow, which now has the highest level of unemployment in the county at 8.8 per cent, up from 3.9 per cent in March.

Here the number of people claiming went up from 2,075 in March to 4,720 in May – an increase of 127 per cent.

That is marginally higher than that seen in Tendring, which prior to lockdown had been experiencing the highest level of people on employment benefit, at 4.6 per cent.

Unemployment rose to 8.6 per cent in May as the number of people claiming benefit went up from 3,635 in March to 6,755 in May – an increase of 85 per cent.

Altogether 71,655 people in Essex were claiming unemployment benefits this May.

It means that an extra 20,075 people were added to the system in a single month, with the number increasing by 39 per cent from 51,580 claimants in April.

The figure had already surged during the first full month of lockdown, rising from just 29,705 claimants in March.

It means eight per cent of working age adults in Essex are now claiming these benefits – up from 5.8 per cent in April and 3.3 per cent in March.

The latest figures from the Office for National Statistics show that between March and May the number of people relying on benefits in Uttlesford increased from 835 to 2,265.

Epping Forest has also been severely affected – there the number of people claiming unemployment benefit rose from 1,530 to 4,985 – an increase of 225 per cent.

It means the overall unemployment rate in Epping Forest has risen from 1.9 per cent to 6.2 per cent

In Brentwood the number of those claiming went from 835 to 1,635, an increase of 194 per cent, meaning the overall jobless rate climbed from 1.8 per cent to 5.3 per cent.

In Chelmsford there was an increase in claims of 159 per cent, as numbers rose from 2,085 to 5,420. It means the ovall jobless rate increased from 1.9 per cent to five per cent.

The figures are likely to get much worse as the furlough scheme is wound down, forecasters have warned.

Sara Willcocks, head of communications at anti-poverty charity Turn2us, said: “As unemployment and benefit claimant numbers rise, it is crucial the government reviews its response.

“In August, employers will be required to start contributing to the wages of furloughed employees. This is likely to lead to an increase in redundancies for companies unable to cover these costs; and further adding to the number of people who will be without work.

“We must do all we can to protect everyone who needs it with the same urgency the government had in protecting businesses. Failure to do so could mean hunger, homelessness and debt may end up being the next pandemic facing our nation.”

Charities have also warned that it is young people who are the most at risk from job losses due to the coronavirus crisis.

Research from the ONS and TUC showed that the accommodation and food industry and the arts, entertainment and recreation industry are likely to see the most job losses.

They found that workers aged 25 and under are three times more likely than older workers to be employed in these industries.

The figures on the number claiming unemployment benefit suggest that this is already having an impact within Essex.

In May, 13,175 people aged 18 to 24 were claiming unemployment benefit – up from 8,935 in April, and more than double the 5,540 claimants in March.

In the last month the number has been rising at a faster rate for young people than the average for all age groups.

Seyi Obakin, chief executive of youth homelessness charity Centrepoint, said: “The rise in the number of claimants revealed in today’s statistics is confirmation that young people will be amongst the hardest hit when it comes to the economic impact of coronavirus.

“The scale of new claimants puts us in uncharted territory and government can’t leave young people to navigate potentially months of unemployment alone.

“Tailored support for those struggling to find work is essential – but the crucial element in the government’s response should be ensuring young people new to Universal Credit receive enough money to continue to live independently should they need to.

“That is not happening at the moment. Currently, if you are under 25 and receiving Universal Credit, you receive £67 less than an older claimant for no other reason than your age.

“This defies logic and, given the current landscape facing young people, especially for those who are unable to move home or call on the bank of mum and dad, risks condemning them to debt and homelessness.”

Responding to the figures, Mims Davies, Minister for Employment, said: “Today’s figures are starting to show the impact of Covid-19 on our economy, but our furlough scheme, grants, loans and tax cuts have protected thousands of businesses and millions of jobs, setting us up for recovery.

“Already our nationwide network of Work Coaches have moved in to support jobseekers across sectors and match them with employers who are recruiting.

“By responding to the needs of communities across the UK they will be at the heart of our revival and renewal, helping people find new roles and move forward with their lives.”