Havering MP, Julia Lopez, has warned of a “growing jobs crisis” after new figures revealed a 14% rise in the number of residents in her Hornchurch & Upminster constituency claiming Universal Credit over the past year. The increase, more than 1,000 extra claimants since last July, comes as unemployment rises nationally for the tenth consecutive month under Labour.
Across the UK, there are now 1.1 million more Universal Credit claimants than a year ago. The Chancellor’s so-called “Jobs Tax” has been blamed for stifling growth, hitting small businesses, and forcing employers in sectors from retail and construction to personal care to freeze hiring, scale back investment, or shed staff.
Locally, almost 9,000 people in the Hornchurch & Upminster constituency, which includes Harold Wood, Cranham and Harold Hill, are now claiming Universal Credit. Youth unemployment is climbing fast, prompting concerns over the future of skills, training, and opportunities for young people.
Mrs Lopez, who warned in Parliament after the November Budget that the Jobs Tax would squeeze opportunities without improving public services, has been campaigning nationally with local high-street businesses including The Vanilla Room, Utopia, and Wyndham Hair. They have highlighted the severe pressure on “people-centred” industries such as nurseries and beauty salons.
Figures from the British Hair Consortium, with whom Mrs Lopez has worked closely, show that 15,600 jobs have already been lost in the hair and beauty sector in the first quarter of this year alone. The group is also reporting a rise in workers being pushed into the hidden economy, undercutting legitimate businesses and stripping employees of rights and protections.
“These latest figures confirm what I’ve been hearing week in, week out from local employers,” said Mrs Lopez. “Costs are up, confidence is down, and the Government is failing to act. Shopkeepers, tradespeople, and skilled professionals tell me they are struggling to keep staff or take on apprentices. Without urgent changes, more livelihoods will be lost and our communities will suffer. This is a human tragedy playing out, and it will cost everyone more.”
She warned that without intervention, more sectors could face the same fate as the hair and beauty industry, with high streets hollowed out and legitimate, tax-paying businesses replaced by rogue operators.
