End Hunger UK says payment delays and errors are pushing vulnerable people into destitution, hunger and debt

This article is more than 2 years old

This article is more than 2 years old

Church leaders and food banks have called for an overhaul of universal credit to halt a surge in vulnerable claimants being pushed into destitution, hunger and debt when they move on to the benefit.

End Hunger UK, a coalition of 73 poverty charities and faith groups, said excessive payment delays, common administrative errors and lack of support for claimants struggling to navigate the online-only system was driving up use of food banks.

It called for a dramatic reduction in the time claimants must wait for a first payment from a minimum of five weeks to just two weeks, saying the long wait was financially crippling for claimants who had no savings to fall back on.

“It is simply wrong that so many families are forced to use food banks and are getting into serious debt because of the ongoing failings in the benefits system,” said the the Right Rev Paul Butler, bishop of Durham.

The call comes as the work and pensions secretary, Esther McVey, faces a censure debate in the House of Commons on Wednesday after admitting she misled MPs over the contents of a highly critical National Audit Office (NAO) report on universal credit.

Facebook Twitter Pinterest Esther McVey admitted misleading MPs over the contents of a highly critical report on universal credit. Photograph: Jack Taylor/Getty Images

There is growing concern among campaigners, landlords and opposition MPs about the cost and effectiveness of universal credit, as well as its impact on claimants, as the government prepares to “migrate” 3 million existing benefit claimants on to the benefit from next July.

The Trussell Trust food bank network reported a 52% average rise in demand for food aid in universal credit areas last year, compared with 13% in areas where it had not been rolled out.



The NAO’s universal credit report substantiated the Trussell Trust findings, seeing increased charity food parcel demand in three of the four areas it analysed, including an 80% increase in Hastings.

End Hunger UK also called for a rethink of advance payments, the system of repayable loans that is the government’s preferred method of supporting low-income claimants through the wait for a first universal credit payment.

Universal credit row: why is Esther McVey facing calls to resign? Read more

It said the level of repayment on advances – capped at 40% of the living costs element of a monthly universal credit payment – should be relaxed to a maximum of 10%, to ensure claimants have enough disposable income to live on.

“Often claimants have been pushed into arrears by the minimum five-week wait, and repaying the advance payments at such an unrealistic rate can push people further into debt and increase the risk of eviction and homelessness.”

About 60% of claimants take up advance loans, indicating that many find the move to universal credit a struggle. Peter Schofield, permanent secretary at the Department for Work and Pensions, defended their use to MPs on Tuesday, calling them “a fantastic way of supporting people in need”.

End Hunger UK called on ministers to conduct a systematic review of the impact of universal credit on claimants’ financial security.



A DWP spokesperson said: “Universal credit is a flexible and responsive benefit, and we continue to make improvements during the rollout with our ‘test and learn’ approach. Already we have removed the seven waiting days, made 100% advance payments available from day one and introduced two weeks’ extra housing support for claimants moving on to universal credit.”