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.’

For your free daily news bulletin
Highways jobs

Senior Commissioning Officer - Community Catalyst

Essex County Council
Up to £35026 per annum
Senior Commissioning Officer - Community CatalystFixed Term, Full TimeUp to £35,026 per annumLocation
Recuriter: Essex County Council

Resource Centre Worker

North Yorkshire County Council
£20,493 - £24,982 per annum, pro rata
We work closely with families and other professionals to ensure that we have sound knowledge of the children we are caring for and are able to... Harrogate, North Yorkshire
Recuriter: North Yorkshire County Council

Relationship Manager

We are looking for an engaging and amiable professional with experience working for, or with, local authorities and an eye for detail. United Kingdom
Recuriter: iChoosr

Adults Service Manager - South

Essex County Council
£58727 - £66963 per annum
Adults Service Manager - SouthFixed Term, Full Time£58,727 - £66,963 per annumLocation
Recuriter: Essex County Council

Pension Officer

Essex County Council
Pension Officer Temporary, Full Time £10.42 - £12.26 per hour Location
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue