A new study by financial website Afforda has revealed the areas in the UK with the highest rates of unemployment benefits claims, with Birmingham leading the rankings. The analysis, based on data from the Office for National Statistics, assessed the number of unemployment benefits claims per 100,000 working-age residents in October 2024.
Birmingham recorded 10,749.64 claims per 100,000 residents, equivalent to 81,375 claimants. This represents a 29.93% increase from 2023, where claims stood at 8,273.43 per 100,000 people.
Newham ranks second, with a rate of 8,466.63 claims per 100,000 residents, reflecting a total of 21,850 claimants. The borough saw a 30.37% rise from its 2023 figure of 6,494.31 per 100,000.
Bradford takes third place with 8,324.42 claims per 100,000 residents, equating to 29,030 claimants in October 2024. This marks a 33.04% increase from the 2023 rate of 6,256.94 per 100,000.
Barking and Dagenham ranks fourth, with 8,211.12 claims per 100,000 residents and a total of 11,920 claimants. This is a 23.27% increase from the 2023 figure of 6,661.20 claims per 100,000.
Wolverhampton rounds out the top five with 7,968.77 claims per 100,000 residents. The city recorded 13,525 claimants, a 12.19% increase from 2023’s figure of 7,102.67 per 100,000.
Brent, Haringey, Enfield, Oldham, and Luton complete the top ten, with rates ranging from 7,933.81 to 7,577.02 claims per 100,000 residents. Luton saw the most significant rise among these areas, with a 35.79% increase in claims compared to 2023.
In contrast, the Isles of Scilly reported the lowest rate of unemployment benefits claims, at just 1,094.09 per 100,000 residents, with 15 claimants recorded in October 2024 and no change from the previous year.
The findings highlight notable regional disparities in unemployment benefits claims, with urban areas and boroughs experiencing the highest rates.