Food banks warn of increase in demand due to universal credit

The Trust, which runs 428 food banks across the UK, has reported that food banks in areas which have had full universal credit rollout for six months or more have seen a 30 per cent average increase in use compared to a year before.

Demand for food parcels in areas outside universal credit rollout has risen by 12 per cent from last year, according to the Trust.

The Trussell Trust’s mid-year statistics, which cover April to September 2017, also say that of the 586,907 three-day emergency food supplies given out nationwide during that period, 208,956 were given to children.

The charity has said it is concerned the situation will worsen in the months leading up to Christmas, when demand for food traditionally spikes, and when the number of food banks available in areas of full universal credit service is set to triple.

The Trussell Trust data indicated that issues with a benefit payment remain the biggest cause of referral to a foodbank in the UK, accounting for 43 per cent of the total.

The Trust said that 45 per cent of referrals made due to a benefit delay and 36 per cent of referrals made because a new claim had not yet been awarded were related to universal credit.

In an attempt to prevent people facing hunger at Christmas, the Trussell Trust is calling on the Government to:

• cut the mandatory six-week wait for a first universal credit payment;
• provide advance loans which are affordable to repay and include a three-month grace period before repayments are due;
• improve poor administration, which the Trust says is currently responsible for a fifth of people waiting longer than six weeks for their first universal credit payment;
• improve the transition between legacy benefits and universal credit so that benefit payments, particularly housing benefit, run on until universal credit payments start;
• reassess the current four-year freeze on benefit levels ahead of the Budget.

Mark Ward, interim chief executive at the Trussell Trust, said, ‘We’re seeing soaring demand at foodbanks across the UK. Our network is working hard to stop people going hungry but the simple truth is that even with the enormous generosity of our donors and volunteers, we’re concerned foodbanks could struggle to meet demand this winter if critical changes to benefit delivery aren’t made now. People cannot be left for weeks without any income, and when that income does come, it must keep pace with living costs – foodbanks cannot be relied upon to pick up the pieces.

‘Our five point plan isn’t going to fix everything – but these emergency measures would help mitigate some of the damage we’re worried will otherwise take place. Without urgent action from policy-makers and even more generous practical support from the public, we don’t know how foodbanks are going to stop families and children going hungry this Christmas.’

The Department for Work and Pensions (DWP) said their data shows around 80 per cent of new full universal credit service claims received their first payment in full and on time, and estimated that of the remaining cases who were not paid in full, around a third had not signed up to their claimant commitment and the other two thirds had an outstanding verification issue, such as providing bank statements, evidence of childcare costs or proof of rent.

A DWP spokesperson added, ‘The reasons for food bank use are wide and complex, and for this report to link it to any one issue would be misleading.

‘We’re clear that advance payments are widely available from the start of anyone’s UC (universal credit) claim, and urgent cases are fast-tracked so no one should be without funds. We know the majority of UC claimants are confident in managing their money. Budgeting support and direct rent payments to landlords are also available to those who need them.’