The rise and rise of the food bank

They call it a "bank" for a reason.

A woman walks into the Kings Church centre, her hands thrust deep into the pockets of a sports jacket twice her size. On the run from domestic abuse, she’s only been in the city two weeks and she’s hungry.

Inside it’s warm, fluorescently lit and smells faintly of disinfectant. The other visitors sitting at old computers in jeans and trainers don’t notice her enter. The only clue about what the centre offers is an abandoned trolley in one corner and some volunteers sorting through tins behind a counter. She looks around, “Is this a homeless shelter or something?” she asks.

More people are visiting food banks every day. There are now over 200 operating across the UK, serving everywhere from the densely concentrated poverty of Tower Hamlets to the rural poverty of Okehampton and the isolated highlands around Inverness.

The biggest is in Coventry, where over 7,000 people have walked away with packs of tinned food, sugar and tea since it launched last year. In a time of economic decline, the number of people visiting food banks doubled to 128,967 last year.

With no sign of the economy recovering, experts predict that they will be serving over half a million people by the next election. Two more open every week.

“Inflation in food, rising living costs and falling wages all push people to count their pennies, and a huge volume of people are finding that they can’t make it to the end of the week,” says Chris Mould, executive chairman of the Trussell Trust which operates the only network of food banks in the UK, “After two or three years of hardship people run out of people to ask for help, and savings have all diminished. This country is facing some hard truths.”

Everyone has their own story about why they came to a food bank, but two big factors play a part in most of them.

Some 29 per cent of visitors say that they have been forced to look for help because of benefits changes. Even if you’re entitled to help under the government’s new system, a six-week delay is standard.

In that space, some of the most vulnerable are left with nothing. But benefits are not the only reason. Low pay is more commonly cited as a reason for seeking help than unemployment, with some 19% of foodbank visitors finding that their wages cannot meet basic costs. Visitors have been let down by the market as well as the state.

Portsmouth food bank operates on the same principle to those across the UK. Those in need are given vouchers by partner agencies – Sure Start centres, social services, schools etc – and that entitles you to free bundle of soup, beans, rice pudding, tinned tomatoes, tea, cereal and other basics.

The food is nutrionally balanced, but the supply isn’t endless. Each voucher entitles you to three days worth of food, and each guest is only allowed three vouchers. Foodbanks are supposed to provide help in a crisis, not a long-term supply.

Although the need for food banks might be dark, their existence offers hope. With no government funding, they are a fantastic example of community action. According to the Trussell Trust, some 1,225 tonnes of food were donated last year, distributed by some 4,360 volunteers in partnership with 1,423 schools and 2,025 churches.

The organisation is religious, but their help comes with no ties, and although the Portsmouth bank has won some rare funding from the Lottery to support their work, most of the food comes from local donations.

Dotted around Portsmouth’s supermarkets you’ll see donation points where you can give away one or two items from your weekly shop. Volunteers stand outside shopping centres with lists of particular things they’d love you to pick up.

“Local communities are really bothered about the impact of the recession,” says Mould, who eventually wants to see some 700 foodbanks across the country, “As soon as you highlight that their neighbours are suffering people want to do something. It’s very heartwarming. They will help if there’s something practical they can do.”

They call it a food “bank” for a reason. Volunteers are encouraged to leave a deposit today, because tomorrow they might need to make a withdrawal. People like Kelly who have relied on foodbanks to get them through a crisis often come back when they’re on their feet, walking in with overflowing bags of shopping and smiling because they want to give something back.

This builds ownership. When a community is asked to help it makes them think about the poverty on their doorstep. It forces them to engage with poverty and take responsibility for it in a way that blind state services might not. This is important.

As Mant said as the bank closed for the day, "Any of us could find ourselves in the same position, but for the Grace of God.”


Donations of food are stacked on shelves at a foodbank centre in Salisubury. Credit: Getty Images

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/