East foodbank says more will need their help, if benefits transitions fail
People are being moved to Universal Credit from older so-called legacy benefits
The head of a foodbank in the East is telling us they're expecting more people will be coming to them for help - if their benefits aren't successfully moved over to Universal Credit.
It as a senior group of MPs is urging the Government to help thousands of vulnerable benefits claimants make the switch, so there isn't a gap in the financial help they get.
"That's what forces people to use foodbanks"
Helen Gilbert is from a foodbank in Norfolk: "If you have been on the benefits system for some time, you don't have savings to rely on to see you through those few weeks between one benefit and the start of the other. That's what forces people to use foodbanks.
"It's mentally very draining if it happens. Even if it happens for a few weeks and you go into debt for a few weeks, those debts still need to be repaid and if you are on benefits that are not meeting your basic costs then you are not going to be able to repay your debts. That's what forces people to go to things like payback lenders."
What else did the report find?
The Public Accounts Committee (PAC) said DWP expected that around 4% of the claimants currently on legacy benefits would not switch to Universal Credit under the process known as managed migration.
This transition was announced in 2010 as a plan to reform the welfare system by introducing Universal Credit as an integrated benefit, replacing six means-tested legacy benefits for working-age people.
As of March last year, there were some 2.2 million households receiving legacy benefits, and DWP has been working to move 900,000 of these to Universal Credit.
The PAC said DWP was facing the "challenging task of moving claimants off its own legacy benefits, some of whom are likely to be vulnerable".
It stated: "Although the department expects only around 4% of these claimants will not switch to Universal Credit, we would be very concerned if large numbers of these people did not transfer and were to lose their benefits.
"It is vital that the department helps these claimants to make the switch, including offering face-to-face support and making sure people fully understand the process, including the arrangements for transitional protection."
A National Audit Office (NAO) report in February warned that 21% of households claiming legacy benefits had not transferred to UC after receiving a notice to switch, and therefore had these older benefits stopped.
Almost all of these households had been receiving tax credits, that report said.
What's the Government said?
In a major speech on welfare reform last week, Prime Minister Rishi Sunak pledged to "accelerate moving people from legacy benefits onto Universal Credit, to give them more access to the world of work".
A Department for Work & Pensions (DWP) spokesperson said:
“We disagree with these findings, which do not acknowledge that the vast majority of Tax Credit customers have successfully moved to Universal Credit.
"There is a range of support to help people move, including dedicated helplines, extensions and transitional protection for those who need it.
“Universal Credit is having a sustained positive impact on the jobs market, with people on Universal Credit more likely to be in work within three, six and nine months of their claim.”
DWP has said it aims to notify all households to make the move to UC by the end of 2025.