The growth of food banks shows why there must be no welfare cap

Cuts to benefits have pushed thousands of families to the edge. Welfare needs to be paid on the basis of need, not within some artificial limit.

Food bank use in south east England, the region known for its wealth and relative prosperity, is up over 60% this year and thousands of families face the prospect of relying on emergency food handouts this Christmas. A decade ago, food banks were almost unheard of in this area but there are now 59 across the region.

We know this thanks to a report from Green MEP Keith Taylor, who’s released Hungry Christmas, a report into the spread of food banks in his region. The report is published ahead of a debate on food banks in Parliament on Thursday, which came after the public demonstrated its understanding of the issue, with more than 100,000 people signing a petition on the subject within four days, possibly a record for the official government site. A group of public health experts have concluded that the rate of food poverty in Britain should be classed as a medical emergency.

At this year’s Green Party conference we heard from the brilliant Jack Monroe, known for the blog A Girl Called Jack; her story is not unusual. She went from a well-paying job working for the Fire Brigade to being a mother living on benefits that didn’t cover the bills. She had tried and tried to balance work and childcare but was stymied at every turn. Jack’s story hasd a happy ending. Not everyone’s does. Few can expect that – what stretches ahead of them are years and, unless our economy is transformed, decades of endless, grinding struggle for the basics of life.

As today’s report highlights, three new food banks are set up every week to help meet demand. Cuts to benefits such as housing benefit, child benefit and council tax benefit have pushed people to the edge. Increasing use of unreasonable sanctions that leave already desperate households with no income at all, force them to turn to charity. But the rise of food banks is not just a result of government’s welfare policies – although a report for Defra, delivered in early summer and mysteriously not seen since – probably shows how welfare cuts are a critical part of the process, and that’s certainly what Keith’s report demonstrates for this one region.

Low pay is, however, the other side of the story. Eighty seven per cent of people on benefits are in work – and many of those are the one in five workers on less than the living wage. That’s more than five million workers – the staff who serve you in shops, the school dinner ladies, the road sweepers and parking attendants you see every day – who can work a full-time week yet not earn enough money to live on. Then there’s the victims of fast-spreading zero-hours contracts. They’re employed, but they can get to the end of the week without any income, or with only a fraction of what they need to pay the rent, buy food, pay for heating and travel.

For despite the Chancellor’s gleeful posturing in this year’s Autumn Statement, the claim of "economic recovery" is not recognisable to most people. Wages are not in line with inflation, energy and transport costs are spiralling, and many people are in the "heat or eat" dilemma, a problem set to worsen due to this government’s disastrous lack of policies to ensure warm, comfortable, affordable-to-heat homes for all and its failure to invest in public transport and ensure its affordability.

So what is to be done: initially, the government should abandon its plan for a welfare cap – as should the Labour Party. Welfare needs to be paid on the basis of need, not within some artificial limit. It should stop pressuring Job Centre staff to sanction benefit recipients. And it should abolish the illogical, unfair bedroom tax, and ensure councils aren’t pushed to force low-income households that can’t afford it to pay council tax.

And it should make the minimum wage a living wage. Labour is saying it is going to ask employers to pay a living wage and offer tax breaks for doing so. I say we should ensure that everyone who works full-time earns enough money for a basic decent existence – the living wage.

A living wage is a salary people can live on, feed themselves and their children on. It would give people back some control over their lives and the ability to plan for the future rather than live a hand to mouth existence. Now that really would be a Merry Christmas from George Osborne.

A volunteer carries a basket of donated jam at the headquarters of the Trussell Trust Foodbank Organisation in Salisbury. Photograph: Getty Images.

Natalie Bennett is the leader of the Green Party of England and Wales and a former editor of Guardian Weekly.

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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