More than 12,000 households in Falkirk have lost income because of changes to Universal Credit this year and councillors have been warned that homelessness is on the rise with the cost of living crisis.
A report to Falkirk Council's executive this week told members how the number of people experiencing poverty has been rising and the level of hardship is also increasing.
That rise is expected to continue in the months ahead as energy prices soar and inflation continues to climb.
Figures from 2019/20 show that after housing costs, 6980 children in the Falkirk area were living in poverty - an increase from 6691 children in 2018/19.
But that figure is almost certainly higher now and housing manager Kenny Gillespie told members we have almost certainly not yet seen the full effects of the pandemic on the local economy.
People working in food banks and food pantries across the district say they have seen increased demand for support, particularly over the festive period.
The council is now expecting to see homelessness rise as people find they are unable to pay their rent or mortgage due to the financial squeeze.
The report states that in the last three months, compared to the same period in 2020, homeless presentations increased by 5.5% and demand for housing advice leapt up 13.9% - an increase that already stretched housing staff are finding hard to keep up with.
The council's benefits advice team estimates that changes to Universal Credit have led to a reduction of nearly £9 million across the district.
While all families lost the £20 uplift that was introduced in response to Covid,
around one-third of people did benefit from changes to how much you can earn before Universal Credit is affected.
This change means that now, for every £1 earned, UC decreases by 55p, compared to a 63p reduction previously.
People who find themselves in financial difficulties are urged to get advice on what help is available.
Last year, Falkirk Council's Debt Advice team supported 756 clients (compared to 627 in 2020).
It negotiated £5.6m of debt, compared to £3.9m the previous year.
The council's welfare benefits service also supported 2994 clients, a rise from 2250 in 2020.
However, applications to the Scottish Welfare Fund for crisis grants fell last year; by January this year the council had received 3728 applications, compared to 5083 in 2020/21.
It is thought that the Scottish Child Bridging payments, Universal Credit £20 uplift and Covid-related tenant protections have kept applications lower.
SNP Councillor Gary Bouse said: "It's a well written report but in 2022 it's sad that we are still having to deal with this.
"The Scottish Child Payment has helped but we have to keep mitigating to get people even closer to the poverty line, even if we can't get them over it.
"People seem to want to declare Covid is over and done with but there is a fall-out that will be with us for at least another year, I believe."
He pointed to the soaring fuel costs in particular, saying that the UK Government has the power to control this.
"If we can't care for people in poverty, should we even be here?," he said.
Labour group leader Robert Bissett said that his own ward, Falkirk North, has a high level of poverty "we see on a daily basis".
He suggested that a windfall tax on the energy companies who are making "almost obscene profits" should be introduced.
Conservative leader James Kerr said that "someone has to step up and take responsibility" for the crisis.
Councillors agreed, however, that the council's poverty team is doing excellent work to help people at a local level through the Fairer Falkirk strategy.
Anyone who is worried about debt or needs benefits advice should contact the team.
