Almost half of foodbank users having money deducted from benefits by government

‘Our welfare system should increase people’s security, not suffering’, Trussell Trust chief says

Staff and volunteers pack food parcels at the Norwood and Brixton foodbank at St Margaret’s Church, which is supported by The Trussell Trust (Getty Images)

Almost half of those forced to turn to foodbanks for essentials are also paying back benefit debt to the government — with most covering costs caused by delays built into the system that can see claimants wait more than a month for support.

Research from the nation’s largest foodbank charity the Trussell Trust found three in four Universal Credit recipients who used their services over the summer were repaying an advance on the benefit to the government — making up just under half of all of their clients.

The loans are primarily taken out to cover the cost of the five-week wait claimants face until they are given access to the benefit. Figures from the Department for Work and Pensions show 1.3million such advances were paid to Universal Credit recipients between March and June this year.

Others face deductions from the benefit to recover overpayments due to administrative errors made by the government. Last year, which saw overpayments reach their highest level, £1 in every £10 of universal credit money was paid incorrectly — putting £1.7bn of government debt on claimants to resolve.

According to the Trussell Trust, 41 per cent of Universal Credit claimants faced a deduction in August — including 26 per cent who were making advance repayments, and 10 per cent who were repaying both advances and other debts including rent and utilities through their payment.

During the summer, the charity found 73 per cent of foodbank users receiving Universal Credit were repaying an advance payment at the time they visited a food bank — up from 51 per cent before the pandemic.

And more than half of households at foodbanks where someone was experiencing mental health difficulties were found to owe money to the government through a loan, compared to 30 per cent without such problems.

The charity, which surveyed 435 service users between 22 June and 31 July with Heriot-Watt University, is now calling on the government to stop taking such payments during the winter until an alternative is put in place.

“Our welfare system should increase people’s security, not suffering”, Emma Revie, chief executive at the Trussell Trust said. “But right now, the government is taking money from the benefit payments of many people using food banks.

“Taking money off payments to repay these debts makes it much harder for people to afford the essentials and can impact on people’s mental health — this isn’t okay.”

She added: “With the pandemic continuing to hit people’s incomes, the government must pause taking money from benefit payments over the winter months until a more responsible and just system that offers security and support is in place.

“This would help people on the lowest incomes to keep every penny of their benefits to help afford the absolute essentials, instead of needing to turn to a food bank for help.”

The Independent has contacted the Department for Work and Pensions for comment.