The claimant total stood at a provisional 8.40million in December 2025 - up from 7.36million a year earlier, according to new Department for Work and Pensions data.
The number claiming Universal Credit (UC) because of their health has soared by 41 per cent in the year to September 2025 - increasing by 933,000 people to a record 3.2 million.
Ms Reeves was accused of caving in to Labour MPs by announcing that parents will once more be allowed to claim Universal Credit and tax reductions for their third or subsequent children.
In Newport, Middlesbrough, six out of seven children are currently classed as living in poverty, meaning their households have an income that is 60 percent less than average.
A record 8.3 million people were claiming Universal Credit in October - equivalent to almost a quarter of the working age population - up from 7.2 million at the same point last year.
Under the Chancellor's 'youth guarantee', 18 to 21-year-olds who have been on Universal Credit for 18 months without earning or learning will be offered paid work.