COVID-19 fallout will hit the poorest hardest, report warns

The economic and employment impact of the COVID-19 pandemic will be ‘significant’ for those already living in poverty, according to a new study.

A report published today (5 August) by the Social Metrics Commission (SMC), based on YouGov survey data from around 80,000 people shows that those in work prior to the crisis and already in the deepest forms of poverty have been most heavily impacted by the economic fallout.

For example, those more than 50% below the poverty line have been 15 percentage points more likely to have been furloughed, had reduced wages, or lost their job.

It also found that the youngest and oldest workers have been impacted most by COVID-19. Compared to those aged between 35 and 44, those aged 18-24 and those aged 55 and over are more likely to have been furloughed, had their wages cut, or lost their job.

And the report also reveals the fallout has varied significantly between workers in different industries.

For example, 81% of those working in hospitality and leisure have been negatively impacted, compared to just 16% in financial services.

But the survey also reveals more people think the crisis has brought society together than think it has divided it.

More than two fifths (41%) of people feel the situation has mainly unified society, compared to just under a quarter (23%) who believe it has mainly divided it. However, this positive response is more common for those living above the poverty line (41%) than below it (38%).

And it shows people feel more positive about their relationships.

In total, when asked how their relationships with others have changed, almost a fifth (19%) of people say they feel more positive about others now, compared to just under one in eight (12%) who feel more negative.

However, this positive response is more common for those living above the poverty line (19%) than below it (16%).

‘Strong families and communities are cornerstones of society, helping create an environment in which people support and protect each other in times of need,’ said commission chair and the chief executive of the Legatum Institute, Philippa Stroud.

‘So, I am encouraged that people across the UK feel the coronavirus crisis has brought society together and increased their appreciation of others, rather than causing division and distrust. Strong social capital will be vital to the future prosperity of our country as we emerge from the pandemic.

‘However, the findings also highlight the resilience gap between those living in poverty and those above the poverty line. In addition to financial struggles, our data shows that those in poverty were more likely to have felt lonely before lockdown began and are more likely to feel more lonely as a result of the crisis.

‘Research has demonstrated the disastrous effects that loneliness can have on our physical and mental wellbeing, so it is important that the social and mental health challenges facing the most vulnerable are considered alongside economic ones as we build the road to recovery.’

The full report – Poverty and COVID-19 – is available to read here.

Photo Credit – Geralt (Pixabay)