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Why are welfare claims going up now?
Welfare claims are increasing due to a combination of rising living costs, unemployment, and economic uncertainty. Many people are struggling to cover essentials like housing, food, and energy bills, leading more to seek government support.
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How does the cost of living affect welfare dependency?
As prices for essentials rise, more individuals and families find it difficult to make ends meet without additional support. This leads to higher welfare dependency, especially among those with low incomes or facing job losses.
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What impact does rising welfare claims have on the UK economy?
An increase in welfare claims can strain public finances and may indicate underlying economic issues like unemployment or stagnant wages. It can also influence government spending and economic growth in the longer term.
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Are more people unemployed because of the current economic pressures?
Yes, recent data shows rising youth unemployment and more people claiming benefits, partly due to economic challenges, structural changes in the job market, and the aftermath of the COVID pandemic.
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What policies are being considered to help those affected?
The government is exploring measures like a youth guarantee, reforms to employment support, and targeted assistance for vulnerable groups. These aim to reduce unemployment and welfare dependency while addressing the root causes of economic hardship.