Economics Essay: Factors Behind the Rise of Food Banks

This economics essay explores the significant increase in the usage of food banks, particularly in the United Kingdom. It delves into the key drivers behind this trend, including low incomes, unemployment, delays in benefit payments, and the rising cost of food. The essay highlights the role of charitable organizations, such as food banks, in providing emergency food assistance and the institutionalization of food banks within welfare systems. It examines how factors like rising food prices, shrinking incomes, and increased personal debt contribute to families' inability to afford sufficient food, leading to a greater demand for food banks. The essay also discusses the impact of universal credit rollout, the challenges faced by food banks in meeting demand, and the limitations of food banks as a long-term solution to food insecurity. The analysis considers the influence of stagnating wages, rising living costs, and the shrinking welfare state on the growing demand for food banks, particularly in the context of the UK. The essay concludes by emphasizing the importance of addressing the underlying economic issues contributing to food poverty.

Running head: ECONOMICS
Economics
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ECONOMICS
What lies behind the rise of food banks?
The usage of food banks are known to rise recently. The poor does not gain much
from the food banks as it is a big business1. The rise in the demand of food banks along with
the usage of the food banks usually arises from low income, unemployment and benefit
delays among the families. It have been found out that with the rise of poverty the usage of
food banks rises. Food banks are the charitable organizations which distributes food who
have difficulty purchasing enough food for the hunger.
The food banks are also been institutionalised in the United Kingdom. The food banks
are becoming embedded within welfare provision which is known to be increased by
corporate involvement which indirectly creates an industry of poverty2. Researchers have also
found out that a combination of rising price of food, shrinking income and increase in the
personal debt means that increase in the number of families will not be able to buy sufficient
food which will lead to the rise in demand of food banks. The demand for the food banks
have increased to more than 50 percent after the universal credit have rolled out.
The demand of the food bank in case of United Kingdom is constantly on the rise.
The food banks also are not receiving enough donations from various organizations.
According to a research it was found out that in the present month, that food bank use in UK
have reached its highest ever rate. Since the benefits are not covering the basic living cost.
One such provider of emergency food in UK is the Trussel Trust3. The growing demand of
the food banks is usually driven by people who are known to face crisis. The report from the
1 Loopstra, R., Fledderjohann, J., Reeves, A. and Stuckler, D., 2018. Impact of welfare benefit sanctioning on
food insecurity: A dynamic cross-area study of food bank usage in the UK. Journal of Social Policy, 47(3),
pp.437-457.
2 Butler, P. (2019). Families turn to food banks as last resort 'not because they are free' . [online] the Guardian.
Available at: https://www.theguardian.com/society/2014/feb/20/food-bank-review-undermines-ministers-claim
[Accessed 6 Apr. 2019].
3 BBC News. (2019). Who really goes to a food bank?. [online] Available at:
https://www.bbc.com/news/education-40431701 [Accessed 6 Apr. 2019].

ECONOMICS
Trussel states that it have already sold more than one million parcels in the previous year.
The demand for food bank known to have increased far more after the universal credit
rollout. With the rise in population, food banks struggle to meet demand and is expected to
rise by 98 percent by 2050. However, food banks can end never end food security. It can be
stated as the short term band aid on the huge gaping wound of the high demand of food.
Reducing food waste will also help in protecting the habitats. The hunger report in
2017 shows, more than 600,000 people are seeking emergency food relief every month4. For
this reason, food banks are unable to meet the demand produced due to stagnating wage, rise
in living cost and shrinking welfare state5. Food poverty in the recent years is found to a
record high. The issue of the rise in demand for food banks is increasing every year. The food
banks are becoming embedded within welfare provision which is known to be increased by
corporate involvement which indirectly creates an industry of poverty. Researchers have also
found out that a combination of rising price of food, shrinking income and increase in the
personal debt means that increase in the number of families will not be able to buy sufficient
food which will lead to the rise in demand of food banks. The demand for the food banks
have increased to more than 50 percent after the universal credit have rolled out. The demand
of the food bank in case of United Kingdom is constantly on the rise.
The food bank of Britain are being mostly used by the single men, women and the
single mother. Huge amount of debt, job loss, illness and the low wages, all contribute to the
rise in food poverty and insecurity6. The largest drivers of the food banks are delays long
4 The Conversation. (2019). Food banks are becoming institutionalised in the UK. [online] Available at:
https://theconversation.com/food-banks-are-becoming-institutionalised-in-the-uk-114325 [Accessed 6 Apr.
2019].
5 Loopstra, R., Fledderjohann, J., Reeves, A. and Stuckler, D., 2018. Impact of welfare benefit sanctioning on
food insecurity: A dynamic cross-area study of food bank usage in the UK. Journal of Social Policy, 47(3),
pp.437-457.
6 Garthwaite, K.A., Collins, P.J. and Bambra, C., 2015. Food for thought: An ethnographic study of negotiating
ill health and food insecurity in a UK foodbank. Social science & medicine, 132, pp.38-44.

ECONOMICS
with changes of welfare benefits. The food bank referral rates more than double the national
average in those areas which already uses universal credit.
In my opinion, the demand for food banks increase since the population have
increased with the shrinking income, rise in unemployment along with rise in the food price.
The use of food banks have soared at a high rate since the welfare benefits fail to cover the
basic living cost.

ECONOMICS
Reference list
BBC News. (2019). Who really goes to a food bank?. [online] Available at:
https://www.bbc.com/news/education-40431701 [Accessed 6 Apr. 2019].
Butler, P. (2019). Families turn to food banks as last resort 'not because they are free'.
[online] the Guardian. Available at: https://www.theguardian.com/society/2014/feb/20/food-
bank-review-undermines-ministers-claim [Accessed 6 Apr. 2019].
Garthwaite, K.A., Collins, P.J. and Bambra, C., 2015. Food for thought: An ethnographic
study of negotiating ill health and food insecurity in a UK foodbank. Social science &
medicine, 132, pp.38-44.
Loopstra, R. and Tarasuk, V., 2015. Food bank usage is a poor indicator of food insecurity:
Insights from Canada. Social Policy and Society, 14(3), pp.443-455.
Loopstra, R., Fledderjohann, J., Reeves, A. and Stuckler, D., 2018. Impact of welfare benefit
sanctioning on food insecurity: A dynamic cross-area study of food bank usage in the UK.
Journal of Social Policy, 47(3), pp.437-457.
The Conversation. (2019). Food banks are becoming institutionalised in the UK. [online]
Available at: https://theconversation.com/food-banks-are-becoming-institutionalised-in-the-
uk-114325 [Accessed 6 Apr. 2019].