THE number of unemployed people claiming benefits is rising across the ‘Red Wall’ in the North, including the North-East, as a result of the coronavirus pandemic. 

The findings, from the Northern Powerhouse Partnership's Red Wall Index, dispute earlier claims from the Institute for Fiscal Studies that London and the South East will bear the brunt of the economic impact from the pandemic - not ‘left behind’ towns.

Based on ONS figures released on October 13, the news follows the introduction of the Prime Minister's three tier Covid alert system that raises new concerns for regional economies grabbling with the fallout of the virus. 

Middlesbrough now has the highest number of claimants in the Red Wall, with 7,250 people currently on unemployment benefits. 

Red Wall constituencies the Northern Powerhouse Partnership looks at includes Middlesbrough, Penistone and Stocksbridge, Leeds East, Workington, Darlington and Blackpool South.

Middlesbrough MP Andy McDonald said: “The figures show the extent of the challenge we’re facing here in Middlesbrough.

“Given the announcement about further local lockdowns here, it looks like we haven’t even seen the worst of it yet. The government simply can’t pretend to care about the North if they’re failing to provide adequate support.

“The government should be working towards a green recovery, including unlocking the potential of carbon capture storage and hydrogen, which will help create thousands of jobs for people in my constituency and beyond.”

The Northern Powerhouse Partnership argues that focus still needs to remain on addressing these areas with long-term unemployment issues – rather than on just on areas which were previously doing well, and therefore had further to fall.  

The percentage increase in Darlington’s claimant count – which has the lowest of any of the ‘Red Wall’ areas – is still 47 per cent higher than before from 2,955 in February to 4,340 in September.

Henri Murison, director of the Northern Powerhouse Partnership, “What’s alarming is that many of these so-called ‘left-behind’ areas, which have already seen dramatic increases in unemployment levels in recent months, are now going back into further restrictions. 

“This makes a clear case for further support for communities now under stricter lockdown, as well as a comprehensive plan for recovery, if we’re to avoid economic fall-out compounding the cycles of economic decline in these places.

"Many of these areas are yet to see the full benefits of the successful northern revival in recent decades, which saw our cities and their surrounding regions transformed for the better.  

“It remains important we take these figures in context. PMI figures released on Monday showed some green shoots of recovery in Yorkshire and the North East in particular. If we’re careful, the government can work with local leaders to put investments in places to sustain this progress. 

“Otherwise there is a very real risk the Northern Powerhouse as a project will sustain permanent damage and affect our ability to close the North-South divide for good.”

 Leeds East has seen the largest increase in the number of people claiming unemployment benefits, which has now risen by 3,400 claimants. Workington, which has seen the lowest increase, has still seen 915 more people claiming.