Ending hunger could benefit the UK economy and public finances by over £75 billion each year, reports Trussell

Failing to act on hunger and hardship is costing the UK's public finances and economy £75.6bn each year, new research by anti-poverty charity Trussell has revealed.  

Published today, the Cost of Hunger and Hardship report includes analysis from economic and public policy experts WPI Economics on how much failing to tackle hunger and hardship costs the UK's economy and public finances. Informed by interviews with people with lived experience, the report explores how facing hunger and hardship is linked to worse health, employment outcomes and housing security.  

The report finds the UK economy loses out on over £38 billion each year due to reduced employment and lower productivity, because of the ways in which hunger and hardship can harm people's chances of gaining and maintaining stable employment. For example, people said how facing hardship led to deteriorating physical and mental health, making it far more difficult to find and stay in work. Others talked about not being able to afford transport or the right clothes to attend a job interview, or not having access to the technology needed to complete job applications.  

The public purse also loses out on £18.4 billion in income from taxes (tax revenue) each year and needs to spend an additional £5.3 billion on social security payments as a result. This is due to the scarring effects of severe hardship, which can lead to long-term unemployment and lower wages which can trap people in a cycle of hunger and hardship.  

It found that failure to address hunger and hardship leads to £13.7 billion in additional spending each year on public services like the NHS, schools, children's social care, and more.  

Schools spend an additional £1.5 billion on measures supporting children in poverty such as free school meals and pupil premium, while Trussell's research finds that ending hunger and hardship altogether could boost the economy and lift millions of adults and children out of this situation.¹ 

Almost half of additional expenditure on public services is on healthcare alone (£6.3 billion), due to how hunger and hardship is linked to worse physical and mental health. Indeed, people who are disabled or living with someone who is are disproportionately more likely to experience hunger and hardship. That's why Trussell is calling on the UK government to rethink its cuts to disability benefits, as the anti-poverty warns that cutting support risks pushing more disabled people to food banks.  

Helen Barnard, director of policy, research and impact at Trussell, said: “Trussell's major new research finds that the right thing to do is also common sense for our economy.   

“With a heartbreaking 9.3 million people in the UK experiencing hunger and hardship, including 3 million children, the UK government has a moral and economic responsibility to tackle hunger, as more people risk being forced to the doors of food banks if nothing changes. 

“The UK government must move quickly to meet its commitment on ending the need for emergency food, but planned cuts to disabled people's social security risk plunging even more people into hunger and hardship. Slashing support for disabled people who most need our collective protection from hunger, is cruel, irresponsible, and out of touch with what the public wants. It risks piling even more pressure on public services and damaging our economy.   

“The government's plans to make huge cuts to support for disabled people are likely to drive even more people into severe hardship, damaging their health and prospects even further. There is a better way. Turning this tide would have huge benefits, not just to individuals, but for us all.” 

David, 46, from Norfolk, has a bone disease and is terrified about by the prospect of cuts to his disability benefits. He has recently been forced to turn to a Trussell food bank for support. 

He said: “Life costs more if you're disabled. Things like specialist equipment and travel to healthcare appointments all add up. PIP - which the government is brutally cutting - is there to account for these extra costs. It is not a luxury and I shouldn't need to turn to food banks or charities like Trussell for support. It's not my fault I'm disabled and I shouldn't be punished for it. Cutting my benefits won't get me back to work – it will just push me deeper into poverty.” 

Responding to these findings, Trussell is calling on the UK government to urgently rethink planned cuts to support for disabled people, and update Universal Credit so that it protects people from hunger and hardship.   

• Embedding an Essentials Guarantee into Universal Credit ensure 2.2 million fewer people would be at risk of hunger and hardship in 2027, including 720,000 children. This would lead to a reduction in costs to the economy, public services and public purse of £17.6 billion.  

• Abolishing the two-child limit would lift 670,000 people out of facing hunger and hardship, including 470,000 children. This would lead to a reduction in costs to the economy, public services and public purse of over £3 billion. 

• If the social security system was simplified and more support was provided to ensure that every family claimed the support they were eligible for, this would lift 565,000 people out of hunger and hardship and reduce costs to the economy, public services and public purse of £5 billion. 

Read the Cost of Hunger and Hardship research in full. 

-ENDS- 
 

Notes to editors: 

Trussell's final Cost of Hunger and Hardship report explores a measure of need for emergency food called ‘Hunger and Hardship'. People in hunger and hardship are facing severe hardship, living well below the poverty line, and are likely to be using a food bank now or are at high risk of doing so in the future. The economic modelling was conducted by economic and public policy experts WPI Economics, while the qualitative research was conducted by Humankind Research. Together, the major new research explores the experiences and impacts of hunger and hardship at an individual, societal and economic level.  

This measure does not capture the full scale of food bank need, as there are also some people facing hunger whose incomes are higher than the group captured within the measure used within this project.  This may be in part because of the impact of debt and of the additional costs of disability, neither of which are fully captured in any of the current measures of poverty, including the one used in this report. 

Published in October, Trussell's first Cost of Hunger and Hardship report found that 9.3 million people are facing hunger and hardship across the UK, including 3 million children. 

The cost of hunger and hardship