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

Government plans to move 3 million people currently receiving tax credits and disability benefits on to universal credit from next April will trigger an explosion in food bank use, the Trussell Trust has warned.

The trust – the UK’s biggest food bank network – said urgent changes to the “managed migration” programme are needed to protect vulnerable claimants from falling into hardship or dropping out of the benefit system altogether.

The warning came as MPs prepare to scrutinise safeguards around managed migration – regulations covering the transfer are expected to be laid before parliament this month – with some concerned that too many claimants will be put at risk.

Under existing proposals about 1 million working families receiving tax credits and 750,000 sick and disabled people claiming employment and support allowance (ESA) will be given a month’s notice to apply for universal credit or risk losing their benefits.

Trussell said vulnerable claimants will be at particular danger of failing to navigate the notoriously complex online application for universal credit in time – and, even if they successfully complete it, will have to wait five or more weeks for a first payment.

The problems endured by claimants forced to wait a minimum of 35 days without income after applying for universal credit are well documented, and include rent arrears and eviction, reliance on food banks, stress and debt.

The trust wants the process of moving existing tax credit and ESA claimants to universal credit automated, rather than leaving people to make their own claim, to minimise the risks to vulnerable claimants. It also wants more budgeting and digital skills support to help them manage their claims.

Although claimants are given “transitional protection” guarantees that their universal credit award will not be lower than what they receive under previous benefits, the trust says this protection can be too easily lost if claimants’ circumstances change, for example, if they move house or have another child.

The Trussell’s CEO, Emma Revie, said: “We’re really worried that our network of food banks could see a big increase in people needing help. Leaving 3 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.”

She added: “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 move 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.”

New Trussell trust data shows moving on to universal credit from existing benefits is the fastest growing cause of referrals. On average, food bank demand in areas where universal credit has been in place for at least 12 months increased by 52%, compared with 13% in areas where the new benefit had been in place for three months or less.

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.