It is claimed that the cost of living payments provide only a temporary respite from the use of food banks.
The Trussell Trust, the UK’s largest food bank provider, said there had been only a short-term decline in demand for its services after payments were made.
With the next batch entering the accounts soon, it is estimated that it only took one to three weeks for the funds to arrive.
The government said these payments provide “rapid and much-needed assistance” to millions of low-income families.
How payments work
The support programme, launched last year, saw a series of payments made to the most vulnerable people facing financial challenges caused by the high cost of living.
Low-income families, retirees and some people with disabilities have benefited from it.
The current larger total payment is £900 and comes in three approximately equal installments paid over just over a year. This goes to people on low incomes who receive means-tested benefits such as Universal Credit and Pension Credit.
Some seniors and people with disabilities may qualify as well as receive additional payments.
Ministers said this forms part of a “standard” £3,300 financial support for families during the cost of living crisis, including support with energy bills.
“I have about £10 left after expenses.”
Charities and recipients have warned that the temporary nature of the payments poses a problem.
Jenny Galliford from Hampshire has held Universal Credit since 2018 and is looking for work.
She said the payments were helpful, but were just a “sticky plaster” and she would prefer to see a permanent increase in Universal Credit to cover rising costs.
“Things are back to normal after the payments because the cost of living is still rising,” she said. “You get to a situation where you’re just existing day in and day out instead of living.
“I think you just have to spend it on the basics and understand that you will get back to where you were before.
“I have about £10 left after expenses.”
She also said she was concerned about the situation after next spring.
“What happens when these payments stop? You’ve just left the people who were relying on these payments so heavily again.”
Investigations
Helen Barnard, policy director at the Trussell Trust, said payments were not an appropriate long-term solution to tackling poverty and hardship.
“Every time the cost of living is paid, we see a corresponding reduction in the need for food banks,” she said.
“However, this reprieve is short-lived, as shortly thereafter we see the need growing again as the number of emergency packages distributed quickly rises again.”
Each batch provided a lead time of one to three weeks, depending on individual circumstances, according to the charity’s estimates.
Figures released by YouGov for the Trussell Trust show that the majority of people who received payments this spring said the payment made little or no difference to improving their current financial situation when they were surveyed in August.
Additionally, 80% of people who received a payment in the spring said they had already spent the benefit by the time they were surveyed in August.
MPs’ work and pensions committee is investigating whether the payments support those who need them most.
Sir Stephen Timms, who chairs the committee, said the data showed regular benefits were now very low.
“Many families cannot survive on Universal Credit so have to use food banks,” he said.
The government said it is conducting a comprehensive evaluation of the effectiveness of the payments plan.
Debt charity StepChange said that although the payments were a lifeline for low-income families, it was “unsurprising” that they only lasted a short time as they were swallowed up to deal with debt problems.
The government said it had increased the amount paid in benefits, citing a 10.1% increase in Universal Credit in April and a rise in the National Living Wage.
Prime Minister Rishi Sunak recently said he recognizes that “things are tough at the moment,” noting that halving inflation is a top priority.