Thousands of people in parts of Essex are finding that even working and claiming Universal Credit is not enough to cover the cost of basic needs. Research by campaigners has calculated that the standard Universal Credit (UC) rate falls short of the weekly amount needed for the essentials.
Trussell and the Joseph Roundtree Foundation (JRF) analysis suggests that even people who are claiming the benefit while also holding down a job could be forced to make difficult choices on what to go without in hard times. Government figures show that more than 7.1 million people were in receipt of UC as of October.
That includes more than 22,000 in Southend-on-Sea, including 7,805 who are in employment (35.2%). Just over 21,000 people in Basildon claim UC of which 7,662 (36.5%) have a job.
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Trussell and JRF analysis has found 174,327 people across Essex are claiming Universal Credit. The fund is a catch-all benefit that replaces Housing Benefit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), Child Tax Credit, Working Tax Credit and Income Support.
In some parts of the country, the proportion of people working and claiming UC is much higher. Barking and Dagenham has the county’s second highest proportion of working-age population with a job yet still claiming UC (10%).
Around one in 12 people in Harlow are in work but are claiming UC. That’s compared to one in 27 in Brentwood where just 4,673 people are claiming UC – the lowest total across the county.
The charities’ research suggests “inadequate social security” is the main driver of food bank need, with 1.5 million food parcels given out from Trussell food banks between April and September 2023. They estimate that around five in six low-income households on UC are currently going without essentials.
JRF senior policy adviser Iain Porter said: “Many people receiving Universal Credit are working but employment doesn’t protect them from going without essentials like food, heating and vital household bills. Around two-thirds of working-age adults in poverty are in a working household.
“The basic rate of Universal Credit is not set according to any independent calculation of the cost of essentials and is currently just £91 a week. This is already inadequate to meet people’s needs but it is sometimes reduced further, such as to repay debts to the DWP.
“The Government should embed an Essentials Guarantee into Universal Credit to ensure everyone has a protected minimum amount of support to afford life’s essentials. This would make sure the basic rate of Universal Credit at least covers the cost of essentials and that reductions to benefit payments, including from debt repayments and the benefit cap, can never pull support below that level.”
Hardship charity Turn2us is also backing calls for an Essentials Guarantee. Shelley Hopkinson, Head of Policy and Influencing at hardship charity Turn2us, added: “Universal Credit is intended to top up the incomes of those in low-paid work, but the reality is it falls far short of ensuring people can afford life’s essentials. At Turn2Us, we regularly hear from people skipping meals, going without heating, or struggling to stay afloat despite working. That’s why we support the Essentials Guarantee, a commitment to ensuring Universal Credit provides enough for basic needs, so no one working or accessing benefits is left in poverty.”