Trussell Trust fears the next stage of Universal Credit will see Foodbank Use Soar.

The Trussell Trust has published this Press Release, which should be taken very very seriously indeed.

Not least because many of our contributors are already on Universal Credit and many will also be affected by “managed migration” onto Universal Credit.

Charity warns next stage of Universal Credit could further increase foodbank use.

Anti-poverty charity The Trussell Trust fears the next stage of Universal Credit – which will see three million people moving from tax credits and the old benefits system onto the new system – could lead to a significant increase in foodbank use as new research highlights a major increase in the proportion of foodbank referrals made for people moving onto Universal Credit.

Issues with benefits are the main reason for all Trussell Trust foodbank referrals. Analysis of data from frontline agencies referring to foodbanks across the UK between April 2016 and April 2018 shows that benefit transitions, most likely due to people moving onto Universal Credit, are increasingly accounting for more referrals and are likely driving up need in areas of full Universal Credit rollout. Waiting for the first payment is a key cause, while for many, simply the act of moving over to a new system is causing hardship.

The findings come as the Department for Work and Pensions finalises its plans for the next stage of Universal Credit to take to Parliament later this month. Until now, only people making a new application for benefits in certain areas have been able to apply for Universal Credit. This next stage – ‘managed migration’ – will see the three million people currently receiving tax credits or benefit payments under the old system sent a letter telling them to reapply for these payments under Universal Credit.

The report  (The next stage of Universal Credit. Moving onto the new benefit system and foodbank use) says,

EXECUTIVE SUMMARY

The rollout of Universal Credit to all Jobcentres will soon be complete, and the next stage of Universal Credit will begin. 3 million people currently claiming benefits and tax credits will have to move onto the system. The Trussell Trust is concerned that, given the links between Universal Credit, financial hardship, and foodbank use, this next stage could lead to increased financial need and more demand for foodbanks. The report uses referral data from Trussell Trust foodbank vouchers to examine the impact of Universal Credit on foodbank use, and finds that:

• When Universal Credit goes live in an area, there is a demonstrable increase in demand in local Trussell Trust foodbanks. On average, 12 months after rollout, foodbanks see a 52% increase in demand, Credit for 3 months or less. This increase cannot be attributed to randomness and exists even after accounting for seasonal and other variations.
• More detailed foodbank referral data show that benefit transitions, most likely due to people moving onto Universal Credit, are increasingly accounting for more referrals and are
  likely driving up need in areas of full Universal Credit rollout. Waiting for the first payment is a key cause, while for many, simply the act of moving over to a new system is causing hardship.

This poses serious questions for the next stage of Universal Credit, where many people could lose their benefits entirely or find themselves with less income. The Department’s current plans involve sending letters to people informing them their claim will be terminated if they do not apply for Universal Credit within a four week period. Each claimant will then have to wait at least five weeks for their first payment.

Emma Revie, Chief Executive of The Trussell Trust, explains:

“We created our benefits system in this country to free people from poverty, not lock them into it. As we look at the current plans for the next stage of Universal Credit, we’re really worried that our network of foodbanks could see a big increase in people needing help. Leaving three million people to wait at least five weeks for a first payment – especially when we have already decided they need support through our old benefits or tax credits system – is just not good enough. 

“It doesn’t have to be like this. We know the problems people are likely to face as they move over to the new system, so we can learn from them. The Department for Work and Pensions has shown they can act on evidence from the frontline to make a real difference to people who need our benefits system’s vital support. Now is the time for our Government to take responsibility for moving people currently on the old system over, and to ensure no one faces a gap in payments when that moves happens. Universal Credit needs to be ready for anyone who might need its help, and it needs to be ready before the next stage begins.”

The Guardian reports:

Food bank use will soar after universal credit rollout, warns charity

Trussell Trust calls for urgent changes to policy of moving 3m people on to new system

Last month the mayor of London, Sadiq Khan, warned that managed migration posed a “significant threat of harm” to vulnerable claimants, and that the rollout should be paused to enable stronger protections to be put in place.

Universal credit, which rolls six working-age benefits into one monthly payment, has been dogged by delays – it is currently six years behind schedule – and has been much criticised over design flaws that leave thousands of claimants in hardship.