A survey by the Child Poverty Action Group (CPAG) and the Church of England has found that nearly nine in 10 families reported a significant deterioration in their living standards because of the pandemic – up from eight in 10 families who responded to a previous survey between May and July 2020.
Nearly six in 10 respondents struggled to meet the costs of three or more basic essentials, with 80 per cent struggling to pay for food, 75 per cent struggling to pay for utilities, and 53 per cent struggling with costs related to children.
Commenting on the Poverty in the Pandemic survey, which was undertaken between May and November, Alison Garnham, chief executive of CPAG, said that far from seeing signs of recovery, they are witnessing a ‘rapid deterioration’ in family finances and ‘gloomy future prospects’, with long-term unemployment likely to hit many more across the UK in the coming months.
She added, ‘This report shows that things are getting worse for low-income families. The mounting financial and health pressures on parents are leading many to breaking point.
‘For low-income families, Christmas has always been a difficult time. This year will be even worse - worrying about being able to feed their children and keep them warm can transform the festive season into one of fear and anxiety.’
The report, based on a survey of 393 low-income families with children eligible for free school meals, shows rising loss of employment and an increasing reliance on the social security system.
It found:
- Three quarters of low-income families are finding it ‘difficult’ or ‘very difficult’ to manage financially, with no signs of improvement
- Employment loss, rising living costs and additional caring responsibilities is causing financial strain
- Half of all families said they have a new or worse debt problem
- More than half of low-income families have had a physical or mental health problem as a result of the pandemic
The temporary £20 uplift to universal credit and working tax credits was highlighted as a source of additional support that was appreciated by many families, but some groups that are claimants of other legacy benefits have been excluded from the increase or have not been able to benefit from it due to the effect of benefit cap.
Working families who experienced sudden and severe drops in income are having to rely on universal credit and are struggling to manage financially. The two-child limit has also been highlighted as severely limiting family incomes during the pandemic.
CPAG and the Church of England are calling for a series of measures to ensure low-income families with children receive the support they need over the difficult months and years ahead: retaining the £20 per week uplift to universal credit/tax credits and extending it to other legacy benefits; increasing children’s benefits; expanding eligibility for free school meals; and lifting the two-child limit and benefit cap.
Alison Garnham, said, ‘We urgently need to lift the threat of a reduction in universal credit and tax credits in April 2021 and to protect families and children from further hardship by increasing investment in children’s benefits and abolishing the cruel two-child limit and benefit cap policies. This would make a huge difference to families with children, and would show that children haven’t been forgotten as we tackle the aftermath of the pandemic in 2021.’
The Rt Reverend Paul Butler, Bishop of Durham, said, ‘Our report offers a stark insight into the experiences of low-income families with children, whose lives have been turned upside down by the pandemic. As more people lose their jobs and become reliant on social security, we are seeing the inadequacies of the current system laid bare. Urgent action is needed to prevent a sharp rise in poverty and destitution over the challenging months ahead, starting with a commitment to retain the £20 per week uplift to universal credit and extend it to other legacy benefits.
He added, ‘At this difficult time for us all, we must continue to remember those who are suffering most - not only by supporting local charities, but also by advocating for a more generous social security system and for the deep radical changes needed to tackle the underlying drivers of poverty in the longer-term.’
CASE STUDIES
The report reveals that financial problems are pushing families to breaking point with a growing proportion dealing with mental and physical health problems.
A single parent from the North East with three children, who is working part-time and struggling to meet the costs of children, said, ‘I’m struggling even though I’ve started work 16 hours a week. I’ve just had to isolate for eight days, so will lose pay. I was not working throughout lockdown as I couldn’t get a job as I’m a single parent and had to take care of the children. I barely ate throughout that time. I’m losing a week’s pay and my children need shoes and clothes… I need to feed them and keep them warm.’
A self-employed couple with three children from Yorkshire and The Humber, said, ‘It’s terrible, I’m scared every day. I kept my children off school as I can’t afford uniform. I live on porridge or cereal.’
A single parent with four children from the South East, said, ‘Before Covid I was a full time working mum of four children….. due to covid I have lost my job, been forced to go to a food bank so I could feed my children, and had to rely on family members to help towards my bills. My 13 year old son now has to cycle four miles to and from school as I cannot afford a bus pass or the fuel to take him daily. My 10 year-old has to walk to school, two miles each way. My two year-old daughter no longer goes to her childminder as I cannot afford it. I have four children yet only get help with two of them even though I’ve worked full time for six years. Covid 19 is the reason I no longer have a job and it's wrong to penalise hardworking parents.’
A single parent with one child from Yorkshire and the Humber said, ‘It’s scary as we don’t know what’s happening after this lockdown. I fear more of being on my own with my son the whole of Christmas rather than financial worries. Financial worries are also at the top of my list and I worry I won’t be able to give my son food and keep him warm over Christmas as it’s getting colder and more expensive to heat the home and feed us both.’
A single parent with one child from the South West, said, ‘I have been so ill with Covid that I did not know until weeks later that I had lost my job, as I had not been able to deal with any post. I have only just managed to apply for any benefit help, so we have had no income for many, many weeks, I can't even think clearly enough to work out how long. The fatigue, and brain fog, make seeking help right now so hard - even the simplest things like conversations are difficult to comprehend, so trying to apply for benefit has taken me several attempts over about four weeks, even with the help of a friend. All that time is obviously lost now as benefits start from the day the claim is finally finished and submitted.’
The report, Poverty in the Pandemic: An update on the impact of Covid-19 on low-income families and children, is available at this link. The first Poverty in the Pandemic report, published in August 2020, is available here.
This report is based on an online survey of 678 low-income families with children between May and the end of November 2020, including 393 responses received since the first report in August.