UK’s unemployment capitals laid bare – where thousands told ‘if you can work, you should!’ after Reeves’ benefits raid

BIRMINGHAM holds the unwanted record of being the joblessness capital of the UK – as millions are hit by Labour's benefits cuts.

Flying Eze's interactive map below, based on the latest figures from the Office for National Statistics, lays bare the state of unemployment across the country after yesterday's gloom-ridden Spring Statement.

Chancellor Rachel Reeves swung the axe at the country's bloated welfare bill, shredding it by £3.4billion.

She also confirmed that at least 10,000 civil service pen-pushers will have their jobs abolished, with desperately needed cash redirected to front-line services such as policing.

The Chancellor said: “We are reforming our welfare system making it more sustainable, protecting the most vulnerable and supporting more people back into work.

“The Labour party is the party of work.

“We believe that if you can work, you should work and if you can’t, you should be properly supported.”

Key announcements in the Spring Statement:

• No new tax rises: The Chancellor ruled out further tax hikes and pledged to crack down on tax avoidance, aiming to raise an extra £1bn.
• Growth downgraded for 2025:The OBR halved its GDP growth forecast for next year from 2% to just 1%.
• Growth boost from planning reforms: New housing policies expected to raise GDP by 0.6 per cent over the next decade.
• House building surge: 1.3 million homes expected over five years, with construction hitting a 40-year high.
• £2.2bn extra for defence: Additional funding confirmed to help meet the 2.5 per cent of GDP defence target.
• £400m Defence Innovation Fund: Backing new tech like drones and AI for the front line.
• Welfare shake-up:Targeted employment support and welfare reform to reduce benefit spending.
• Civil service cuts: New voluntary exit schemes and AI tools to shrink Government.

According to our map, Perry Barr is the worst hit area of Birmingham, at 16.2 per cent with 12,860 people unemployed, including 2,125 aged 18 to 24.

England‘s ‘second city' has the top four spots and two others in the top 10, based on new Department for Work and Pensions (DWP) data.

Birmingham Ladywood was the second worst recording 14.6 per cent of people claiming unemployment related benefits.

Outside of the West Midlands city, Bradford West came fifth showing a claimant count of 9,045 people.

Elsewhere on the list, London had two constituencies – Brent East and East Ham – with 9.8 per cent and 9.6 per cent respectively.

Hall Green and Moseley, Yardley, Hodge Hill and Solihull North and Erdington in Birmingham also made an appearance.

Bradford East completed the top 10 rankings with 8,255 claimants.

There were a total of 1.78 million claimants in February 2025.

This figure was 44,000 more than the month before and 203,000 more than in February 2024.

Meanwhile, new Office for National Statistics (ONS) figures also showed the rate of unemployment remained unchanged at 4.4 per cent in the three months to January.

However, this is above estimates of a year ago.

The estimated number of vacancies in between December 2024 to February 2025 was 816,000.

The ONS's Liz McKeown said: “The wider labour market picture is relatively unchanged, with the number of employees on payroll broadly flat in the latest period and with little growth seen over much of the last year.

“Unemployment, as measured by the Labour Force Survey, and the Claimant Count have both increased slightly in the latest periods, though caution continues to be advised with the survey estimates.

“Initial estimates show that the number of vacancies is little changed on the previous quarter, remaining just above pre-pandemic levels.”

A raft of benefit changes were confirmed in Wednesday's Spring Statement.

The government laid out how it needs to cut welfare spending in order to balance the nation's finances and help more Brits back to work.

The changes outlined last week when the Department for Work and Pensions (DWP) released its Pathways to Work green paper, but yesterday were confirmed.

The measures are expected to save more than £5billion a year, with changes to eligibility for PIP expected to account for the largest proportion of savings.

Key changes include:

• Merging jobseeker's allowance and employment support allowance, with a system that awards higher payments to those who have a work history compared to those who have not.
• Abolishing the Work Capability Assessment (WCA) by 2028, with all health-related payments to be transitioned to PIP in the future.
• Banning under-22s from claiming incapacity benefits under Universal Credit entirely.
• Introducing an above-inflation rise to Universal Credit's standard allowance, while reducing the highest incapacity payment.
• Raising the eligibility threshold for PIP, aimed at achieving £5billion in annual savings.
• Launching a “Right to Work Guarantee”, allowing unemployed individuals to attempt returning to work without losing benefits if they find it unsustainable.

The government has confirmed that it will bring forward primary legislation this session to enable delivery of the PIP additional eligibility requirement and UC rebalancing reforms from April 2026.

It added that the Right to Work Guarantee will be delivered through separate primary legislation which will be introduced in due course.

Here we explain exactly what the changes mean for you.

Tougher PIP assessments

The DWP will tighten the criteria for claiming PIP, a non-means-tested benefit designed to support individuals with health conditions.

Currently, PIP is worth up to £108 per week.

Under the proposed changes, applicants will need to score a minimum of four points in at least one specific daily living activity to qualify for the benefit.

This marks a shift from the current system, which allows individuals to qualify with a lower overall score spread across multiple activities.

As a result, some existing PIP recipients, as well as new applicants, may no longer meet the eligibility requirements and could lose access to the benefit.

There will also be a review of the PIP assessment process.

People with severe conditions will be exempt from undergoing further reassessments.

Currently, disability living allowance (DLA) is provided to children under the age of 16, after which they transition to PIP.

The review will also explore the possibility of raising the transition age from 16 to 18.

Universal Credit health assessments scrapped

The Work Capability Assessment, which determines whether someone is deemed fit for work or has limited capability for work (LCW) or limited capability for work-related activity (LCWRA), will be scrapped by 2028.

Instead the DWP will use the PIP assessment to assess entitlement for any Universal Credit health supplements.

While current LCWRA claimants will retain their current health element (£416.19 per month) and benefit from a standard allowance rise, new claimants will receive a lower health element, offset by a new higher standard allowance.

A new premium is proposed for those with the most severe, lifelong conditions who cannot work.

Claimants under the age of 22 will no longer be eligible for the health element of Universal Credit.

Claimants under the age of 22 will no longer be eligible for the health element of Universal Credit.

The government is also introducing legislation to remove barriers to employment for benefit claimants by ensuring that attempting work will no longer automatically trigger a reassessment or review of their award.

The intention is to give people the confidence to try work without fear of immediately losing their benefits if it doesn't work out.

Universal Credit standard allowance boost

Millions of households on Universal Claimants will see their benefits rise by more than inflation over the coming years.

The government has confirmed that the standard allowance for Universal Credit will receive a permanent increase exceeding the rate of inflation, starting next year.

For a single person aged 25 and over, this will result in a £7 weekly rise from April 2026 – an increase from the current £91 per week to £98 per week.

By 2029, the DWP estimates that above-inflation increases will boost the average claimant's standard allowance by £775 in cash terms compared to inflation-only rises.

Similar percentage increases will be applied to the standard allowance for those under 25 and couples.

Benefit payments typically increase each Spring to keep pace with the rising costs of essentials such as food, fuel, and household bills.

The Government said that the four-year benefit freeze from 2015 to 2019, which affected the standard allowance but not incapacity benefits, has left millions of payments trailing behind inflation.

Despite this, payments are still set to rise in line with inflation this year, ahead of the above-inflation increases to the standard allowance from April 2026.

All Universal Credit elements, including the standard allowance, will increase by 1.7% from next April 2025.

For a single person aged 25 and over, the standard allowance will rise from £393.45 to £400.14.

Meanwhile, for joint claimants where one or both are 25 or over, the standard allowance will rise from £617.60 to £628.09.

Merging jobseeker benefits

The government has also put forward plans to merge new style jobseeker's allowance (JSA) and new style employment and support allowance (ESA) into a single benefit called “Unemployment Insurance.”

This new benefit would provide payments at the same rate as ESA, set at £138 per week, and would be time-limited.

Eligibility would not be determined solely by whether an individual has previously worked, but instead by their National Insurance contributions.

Those with a recent work history and sufficient contributions would qualify.

Individuals claiming the new Unemployment Insurance benefit would be required to actively seek work, although reasonable adjustments would be made for those with health conditions that limit their ability to work.

However, the introduction of this benefit would bring an end to the current indefinite entitlement to new style ESA for those assessed as having LCWRA.

Once the time-limited period ends, claimants who remain unemployed would need to apply for Universal Credit, subject to their personal circumstances.