Poverty campaigners have called for a shakeup in the UK’s welfare system after finding that benefits are at least £140 a month below basic everyday costs.
The Joseph Rowntree Foundation and food bank network the Trussell Trust say payments under the Universal Credit scheme are at least £140 a month below the real cost of food, energy and other essentials.
They have calculated the weekly cost of a basic existence at £120 for a single adult and £200 for a couple, based on a basket of goods and services including food, energy, travel, mobile phone and internet use.
But after April’s 10.1% benefits increase, the Universal Credit standard allowance which is meant to cover basic living costs will be £85 a week for a single adult aged over 25 and £134 a week for a couple.
The charities say the value of benefits has fallen to a 40-year low in real terms as a result of freezes and cuts.
Joseph Rowntree Foundation chief executive Paul Kissack said: ‘With millions of low-income households going without essentials like food and heating, and food bank use at record levels, it is plain the system is failing.
‘It is time to build a system that is needs-tested – where the support people get is linked to the actual costs of essentials.’
Trussell Trust chief executive Emma Revie said: ‘People have cut and cut, but you cannot budget if your budget isn’t enough.’
