Last week, with no fanfare, the government’s four-year freeze on benefits began. It was the week in which the tax credit cuts would have kicked in, if parliament had allowed George Osborne to go ahead. But other cuts, like the new freeze, have gone ahead.
The reduction in universal credit equivalent to the tax credit cuts which parliament rejected has taken effect. Since universal credit is set to replace tax credits eventually, Osborne will get eventually the in-work benefit cuts he wanted. Tens of thousands of people who have already switched from tax credits to universal credit saw their in-work benefit cut last week, even though people still on tax credits did not.
The Trussell Trust coordinates the nationwide network of over 400 church-based foodbanks. It publishes today its annual statistics. Demand has risen again. 1.11 million three-day emergency food supplies were provided in 2015-16, each containing enough food for 10 meals, compared with 1.08 million in 2014-15, and just 0.06 million in 2010-11.
The trust estimates that, on average, each visitor needed two referrals in the year, suggesting that just over half a million different people used a Trussell Trust foodbank in 2015-16. The Trust estimates that – outside its network – there is probably the same number again of other foodbank-type projects around Britain.
The Trussell Trust also compiles figures on why people need foodbanks. Twenty-eight per cent of demand in 2015-16 was caused by benefit delay – that is, people not receiving on time benefits to which they were entitled. For 23 per cent, the cause was simply ‘low income’. For 14 per cent, it was ‘benefit change’ – for example, people having their benefits stopped while they are reassessed, or a benefit sanction. So 42 per cent of demand arose from problems in the benefit system.
A survey of 88 Trussell Trust foodbanks in March-April established the proportion for which a range of problems were ‘an issue driving foodbank use’:
- ‘Administrative delays in benefit payments’ for 93 per cent of foodbanks;
- Low wages for 75 per cent;
- Insecure work contracts for 56 per cent;
- Problems accessing employment and support allowance (the new incapacity benefit) for 67 per cent;
- Problems accessing personal independence payment – the disability benefit George Osborne tried to cut in his budget – for 51 per cent;
- Benefit sanctions for 89 per cent.
Universal credit take-up is still very low, but 20 per cent of foodbanks reported that universal credit payments were ‘a significant problem’. Citizens Advice has warned that many universal credit claimants struggle in the seven weeks between a universal credit claim being made and the first money being paid. The government argues that people can draw on their most recent monthly paycheque. Citizens Advice reports that half the universal credit claimants they see are paid weekly.
Ministers point to record UK employment. But it hasn’t reduced foodbank demand. On the contrary, demand is continuing to rise. More and more families are struggling. And the cuts introduced last week are one of the reasons why there is, as yet, no light at the end of the tunnel.
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Stephen Timms is member of parliament for East Ham and chair of the parliamentary Labour party’s backbench work and pensions committee. He tweets @StephenCTimms
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