Universal credit ‘will drive people out onto the streets’
UNIVERSAL Credit could lead to homelessness and increased demand on foodbanks, experts are predicting.
Around three million people are due to move from tax credits and the old benefits system onto the new stage of the benefit within the coming months.
And experts from The Trussell Trust, which runs foodbanks across Greater Manchester, say it will lead to an increase in foodbank use and homelessness across the region.
Universal Credit has led to a huge increase in demand for emergency food supplies, especially in areas where the benefit has been fully rolled out, the charity says.
Waiting for the first Universal Credit payment is the main reason people end up using foodbanks, according to analysis of data from frontline agencies referring to foodbanks between April 2016 and April 2018.
A total of 197,182 threeday emergency food supplies were distributed in the north west by the Trussell Trust between April 2017 and March 2018 - more than any other region in England and Wales.
The Department for Work and Pensions are currently finalising plans for the next stage of Universal Credit to take to Parliament later this month.
The ‘managed migration’ stage 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.
Each person will have to wait at least five weeks for the first payment, and if people miss the deadline for application, could face having all their payments stopped.
“The roll out of universal credit in Greater Manchester is far from complete and the uncertainty is driving people to foodbanks and even onto the streets,” said Paul Barlow, director of Independent Together, a group which provides leaving care services for 16-25-year olds throughout Greater Manchester.
Paul says problems with the Universal Credit rollout have ‘dogged the system’ since the changes started in 2010.
A Department of Work and Pensions spokesperson said Universal Credit ‘simplifies an out-of-date, complex legacy system’.
“It removes the ‘16 hour rule’ which disincentivised work, and covers 85 per cent of child care costs to support claimants in work.”.