Two in five Universal Credit claimants have been forced into a downward spiral of debt this winter, according to a new survey by the Trussell Trust. The charity, which runs food banks across the UK, found that the payment has not kept up with rising bills, leaving many struggling to afford basic necessities.
Dee, a 60-year-old claimant who was made redundant last year, said she feels overwhelmed by debt. She has been repaying a government debt for seven years and has another nine years to go. A five-week wait for her first Universal Credit payment forced her to take an Advance Payment, which is a loan from the government, leading to deductions from her benefits. Tax credit overpayments have compounded her financial difficulties.
As the cost of living rises, Dee now only buys basic food and uses her car once a week to save money. She fears she will have to go further into debt to afford her bills. 'I just feel like I'll never ever get to the end of this debt,' she said. 'To think I won't escape it until my pension years is overwhelming and really drags me down.'
The Trussell Trust survey of 1,506 Universal Credit claimants, conducted by YouGov in January and February, found that one in six had visited a food bank since December. One in three had gone without food for more than a day or had only one meal in the past month. Additionally, one in three had been unable to heat their homes for more than four days.
The government plans to increase benefits by 3.1% next month, in line with the Consumer Prices Index (CPI) inflation rate from September 2021. However, the Bank of England expects inflation to top 7% this year. The Trussell Trust called the increase 'dangerously insufficient' and urged the government to raise benefits by at least 7%.
A government spokesperson said the government recognises the pressures people face and is providing support worth £21bn this financial year and next, including changes to Universal Credit, freezing fuel duties, and a £9.1bn energy bills rebate. Dee, however, said her benefits will only increase by £10 a month, while her electricity bill is set to rise by £14. Emma Revie, chief executive of the Trussell Trust, said the rising cost of living is 'forcing hundreds of thousands of families across the country into a downward spiral of debt just to get by.'
