Save tens of billions in public money by ending hunger – not slashing benefits, government told

Ending hunger and hardship would save the UK economy more than £75 billion each year, according to a groundbreaking new report.

Trussell, which runs the largest network of food banks in the country, estimates that failure to tackle hunger and hardship costs the government £13.7bn a year with additional spending on public services including the NHS, schools and children’s social care.

Almost half of this (£6.3bn) is spent on healthcare, as poverty leads to deteriorating physical and mental health. Meanwhile, schools spend an additional £1.5bn supporting children with free school meals and pupil premium.

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Hunger and hardship also leads to £38bn in losses for the economy due to reduced employment and lower productivity, as poverty harms people’s chances of securing and maintaining work.

This is partly because of the health impact, but people also described being unable to afford transport, clothes for interviews and the technology needed to complete job applications.

A further £18.4bn is lost in income from tax revenue, and the government has to spend an additional £5.3bn on social security payments.

Helen Barnard, director of policy, research and impact at Trussell, said: “The UK government has a moral and economic responsibility to tackle hunger, as more people risk being forced to the doors of food banks if nothing changes.”

There are 9.3 million people in the UK experiencing hunger and hardship, including three million children. Trussell is urging the government to “move quickly to meet its commitment on ending the need for emergency food”. 

The charity is campaigning an ‘essentials guarantee’ to be embedded in universal credit, to ensure claimants can at least afford the basics they need to survive, such as food and heating. Trussell estimates universal credit currently falls short by around £120 a month.

It claims that an essentials guarantee would mean 2.2 million fewer people would be at risk of hunger and hardship in 2027, including 720,000 children. 

This would result in a £17.6bn reduction in costs for the economy and public services, according to Trussell’s estimates.

The charity is also urging the government to abolish the two-child limit on benefits, which it claims would lift 670,000 people out of hunger and hardship, including 470,000 children.

Trussell researchers have found this would lead to savings of more than £3bn. 

Additionally, if the social security system was simplified and more support was provided to ensure that every family claimed the support they are entitled to, Trussell estimates 565,000 people could be lifted out of poverty. This could reduce costs to the economy by £5bn.

However, the government’s reforms to the welfare system so far have focused on getting people into employment and cutting disability benefits.

A DWP spokesperson said: “We have set out a sweeping package of reforms to health and disability benefits that genuinely supports people back into work and lifts people out of poverty, while putting the welfare system on a more sustainable footing so that the safety net is always there to protect those who need it most.

“Our £1bn employment support package will unlock work as part of our plan for change, alongside increasing the living wage, boosting benefits, and introducing a fair repayment rate to help more than a million low-income households on universal credit.”

Barnard warned that “planned cuts to disabled people’s social security risk plunging even more people into hunger and hardship”.

According to the government’s own estimates, 250,000 people will be pushed into poverty by the proposed cuts to disability benefits – including 50,0000 children.

Barnard said: “Slashing support for disabled people who most need our collective protection from hunger, is cruel, irresponsible, and out of touch with what the public wants. It risks piling even more pressure on public services and damaging our economy.

“The government’s plans to make huge cuts to support for disabled people are likely to drive even more people into severe hardship, damaging their health and prospects even further. There is a better way. Turning this tide would have huge benefits, not just to individuals, but for us all.”

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