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Today we have published new research, joint with @ruthpatrick0 at @CovidRealities @UniOfYork , exploring why many low-income families are spending more, not less, in the pandemic. A short thread.... https://www.resolutionfoundation.org/publications/pandemic-pressures/
The dominant story about households’ outgoing in the pandemic has been that spending has fallen, and savings have risen. This is true: household spending in 2020Q3 was 11 per cent lower than a year ago, driven by big falls in transport and “social expenditure”
But over one-in-three low-income families with children say their spending has risen during the pandemic, compared to one-in-five across all family types.
To explore this further, RF collaborated with @CovidRealities , which is documenting the everyday experiences of families with
children on a low income. Here's how one participant answered the Q 'Why low-income families are spending more during the pandemic'
children on a low income. Here's how one participant answered the Q 'Why low-income families are spending more during the pandemic'
Participants spoke about costs going up when child spend more time at home, and because many leisure activities were curtailed during lockdown.
For low-income families, home schooling can be very expensive if you need to buy a laptop or an internet connection, or to buy resources to support those revising for exams.
The use of contact-free shopping has soared during the pandemic, but this can put a great strain on the finances of those who went into the pandemic on restricted budgets.
Quantitative data shows that four-in-ten families with children in the bottom two income quintiles saw their family budgets squeezed during the pandemic, with spending rising more than income (or income falling more than spending)
And the difficulties of managing a low income during the pandemic has led to worsening mental health for some.
Low-income families went into this pandemic in a poor position, with real incomes after housing costs
for the lowest-income households being no higher in 2018-19 than in 2001-02
for the lowest-income households being no higher in 2018-19 than in 2001-02
The Government must urgently confirm that the £20 a week uplift to #universalcredit will continue, and be extended to legacy benefits and those on the benefit cap, providing a small recognition that the pandemic has made life more expensive for those on low incomes.
The collection of the quantitative data was funded by @HealthFdn, and @CovidRealities is funded by @NuffieldFound . We are especially grateful to all the participants who shared their accounts. Read the full report by @mikebrewerecon and @ruthpatrick0 here https://www.resolutionfoundation.org/publications/pandemic-pressures/
Finally, this report looks back at the experience of families during the pandemic so far. But what about the outlook for living standards this year and beyond? That's the focus of our next report. Launch event with @faisalislam & @ruthpatrick0 on 18th Jan. https://www.resolutionfoundation.org/events/a-standard-recovery/
