Action still needed on Universal Credit wait says charity, as new figures show a 13% increase in foodbank use in just six months compared to this time last year

The Trussell Trust’s foodbank network provided 658,048 emergency supplies to people in crisis between April and September 2018, a 13% increase on the same period in 2017. The charity says if the five week minimum wait for a first Universal Credit payment is not reduced, the only way to prevent even more people being forced to foodbanks this winter is to pause all new claims to Universal Credit.

The inability of benefit levels to cover essential living costs and issues with payments remain the most common reasons for referral to a foodbank. Universal Credit is not the only benefit people at foodbanks are experiencing problems with, but the new system is increasingly driving referrals due to benefit delays, which include waiting for a first payment or having problems with a new claim.¹

Foodbanks typically receive more referrals for emergency support during the second half of the financial year, raising concerns that foodbank use this winter will rise further, as hardship experienced annually during the colder months is compounded by more people left waiting at least five weeks for benefit payments.

The Trussell Trust welcomes changes to Universal Credit announced in the recent Budget. However much of the support will not come into force until July 2020.² To protect people who will move onto Universal Credit before that point, the charity is calling for the Department for Work & Pensions to be resourced to reduce the five week minimum wait for a first payment.

Emma Revie, Chief Executive of The Trussell Trust explains,

“We created systems like our national health service, fire service and benefits system because we’re a country that believes in protecting each other. Our benefits system is supposed to anchor any of us from being swept into poverty, but if Universal Credit is to do that, we need to see urgent changes.

“It’s not right that people are being forced to use foodbanks after weeks of waiting for Universal Credit payments. The changes announced in last week’s Budget are a good start – but they won’t solve all of the problems foodbanks see, and they won’t help people making new claims this winter. 

“We’re seeing soaring levels of need at foodbanks. The time to act is now. If the five week wait isn’t reduced, the only way to stop even more people being forced to foodbanks this winter will be to pause all new claims to Universal Credit, until funding is in place to reduce the five week wait. Foodbanks cannot continue to pick up the pieces - we have to make sure our benefits system can protect people from hunger.”

A national petition calling on the Government to fix Universal Credit from the End Hunger UK campaign, backed by The Trussell Trust and a range of charities and faith groups, will be delivered to 10 Downing Street on Wednesday 7^th November. 

Ends 

Notes to Editor

• ·        Between 1^st April and 30^th September 2018, foodbanks in The Trussell Trust’s network provided 658,048 emergency supplies to people in crisis between April and September 2018. 232,761 of these supplies went to children. 
• ·        This is a 13% increase on the same period in 2017, when 580,949 emergency supplies went to people in crisis; 206,327 of these went to children.
• ·        The main reasons for referral between April – Sept 2018 were: benefit payments not covering the cost of essentials (31%), benefit delays (22%) and benefit changes (17%).

1. ‘Benefit delays’: The Trussell Trust can compare trends over time using data gathered from electronic foodbank referrals since April 2016. Electronic referrals are completed by referral agencies in the same way as traditional paper vouchers, and can collect more detailed information about the reason behind the referral.

Additional information about the type of electronic referral due to a ‘benefit delay’ includes waiting for a first payment, waiting for a new claim to be awarded and interrupted payments. Universal Credit accounted for the following proportion of electronic foodbank referrals due to a benefit delay:

2. The Budget: The Trussell Trust welcomes the Universal Credit changes announced in the recent Budget, however the changes will not help everyone referred to a foodbank following a Universal Credit issue. Changes aimed at addressing the five-week wait will not come into force quickly enough to make a difference this winter.

• ·        While the government has now introduced 100% advance payments to manage the five-week wait, these must be repaid. The 2018 Budget announced the government would attempt to make repayments more affordable by reducing the maximum rate of Universal Credit deductions to repay debts from 40% to 30% of the Universal Credit personal allowance. It will also increase the period over which advances can be recovered, from 12 to 16 months. However, the former change will not happen until October 2019, and the latter only from October 2021.
• ·        Building on the 2017 Budget announcement that Housing Benefit claimants will receive an additional payment providing a fortnight’s worth of support during their transition to Universal Credit, the government announced that it will extend this to cover the income-related elements of Jobseeker’s Allowance and Employment and Support Allowance, and Income Support. However, this excludes significant groups, such as people receiving tax credits, and will only come into force from July 2020.