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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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump