William Eichler 12 January 2021

Lockdown piles extra financial pressures on low income families

Lockdown piles extra financial pressures on low income families image

The extra cost of food, energy, and entertaining and home-schooling children has meant that low-income families with children are twice as likely to have increased their spending during the pandemic, according to a new study.

Pandemic Pressures, a collaboration between the Resolution Foundation and the Nuffield Foundation-funded Covid Realities research project at the University of York, notes that the pandemic has been marked by a huge reduction in overall spending.

However, this ‘enforced saving’ has affected higher income households more, as they spend 40% more of their income on recreation, leisure and hospitality activities than the poorest fifth of households (24% vs. 17%).

The research shows that the pandemic has in many cases made it more expensive to live on a low income with children.

Over a third (36%) of low-income households with children have increased their spending during the pandemic so far, compared to around one-in-six (18%) who have reduced their spending.

Among high-income households without children, 13% have increased their spending, compared to 40% who have reduced it.

The report found that the extra financial pressures on low income families were the result of higher food and energy bills which resulted from having children at home 24 hours a day, and the additional costs associated with home-schooling.

‘The pandemic has forced society as a whole to spend less and save more. But these broad spending patterns don’t hold true for everyone,’ said Mike Brewer, chief economist at the Resolution Foundation.

‘The extra cost of feeding, schooling and entertaining children 24/7 means that, for many families, lockdowns have made life more expensive to live on a low income.

‘With the country going into another lockdown for at least the next few months, the chancellor should acknowledge the pandemic pressures that families with children face and reconsider plans to cut Universal Credit in just a few months’ time.’

SIGN UP
For your free daily news bulletin
Highways jobs

Trainee Sheltered Housing Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,510- £36,969 per annum
The London Boroughs of Richmond upon Thames and Wandsworth present a unique opportunity to be part of a team who work together in a ground-breaking shared staffing structure across both boroughs. Are you passionate about making a difference in the lives Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Assistant Team Manager

Oxfordshire County Council
£50,269 - £53,460
About Us Together, we’re shaping children’s social care for the future. Every day, our colleagues are helping to transform the lives of the residents of Oxfordshire. In our Early Help, Assessment and Prevention Directorate, we’re committed to del Abingdon
Recuriter: Oxfordshire County Council

Finance Business Partner (Qualified)

The Royal Borough of Kensington & Chelsea Council
Negotiable
Provide expert financial strategy and insight to shape our services and build a fairer boroughProvide expert financial strategy and insight to shape o England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Residential Support Worker - Development Programme

Durham County Council
£26,403 - £28,598
Residential Support Workers – Temporary 12 Month development opportunity Salary
Recuriter: Durham County Council

Service Improvement Support Officer

Durham County Council
Grade 10 £38,220 - £41,771
Applications are invited for a Service Improvement Support Officer within the Adult and Health Services Development and Learning Team. The position is Spennymoor
Recuriter: Durham County Council
Linkedin Banner