Unemployment down but benefits bill rises

By Ian Dipple 14/12 Updated: 14/12 12:31

THE WORSENING economic climate has resulted in hundreds of thousands of pounds being added to Redditch's benefits bill.

Between April and September more than £19million was paid out in benefits to Redditch residents - a rise in the region of £600,000 compared with the same period last year. The biggest portion of the bill was Council Tax benefit which cost £7.5million.

Borough council officers are dealing with about 8,000 cases a month of people claiming benefits for the first time or facing a change in circumstances due to losing their job, reduction in hours or getting back into work. There were over 1,000 new claims between April and June alone.

The statistics were presented to the council's decision-making executive committee last Tuesday (December 6) and come as latest figures show unemployment fell slightly in Redditch during November, down from 2,042 the previous month to 2,021. Youth unemployment remains a major concern as four of the areas in the top ten highest unemployment rates for 18-24-year-olds across Worcestershire are in Redditch.

Greenlands is third in the table with almost 15 per cent of its young people out of work, followed by Church Hill in fourth, Abbey in fifth and Batchley in seventh.

Coun Greg Chance called the figures a damning indictment on the Government's economic policies.

"This comes on the back of the closure of the REDI Centre and now the youth house. It makes quite depressing reading."

But Coun Jinny Pearce said: "Because of the last Labour government's policy of people not having to retire at 60 or 65 I would like to know how many jobs that has kept that would be released to younger people. That has got to be part of the argument."