Insights into the social impact of Covid19: understanding poverty and who is most at risk

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We are all sharing the experience of the storm caused by COVID-19 and the lockdown, but it is increasingly clear we are not all in the same boat. Some are being buffeted but remain fundamentally secure, yet it is clear that some groups are at risk of being financially overwhelmed.

The Joint Public Issues Team and Church Action on Poverty have started an ongoing programme of research with churches and local charities: Gleanings: Listening and learning about poverty under lockdown. Through surveys and regular focus group conversations we are aiming to understand the impacts being seen seeing on the ground.

This briefing provides a short snapshot, putting churches’ experiences in the rapidly developing wider context, and offering a context for thinking about what happens next.

Updates as the programme develops will be available here.

Summary:
What churches have seen:
● The families who entered the crisis with very low incomes and receiving benefits have been protected from loss of income. They are, however, experiencing a rise in costs for essentials. This is a particular problem for families with children.

● An enormous rise in demand for foodbanks. Trussell Trust figures show an 81% increase overall and a 122% increase in children supported. This rise is patchy throughout the country with some areas reporting little or no effect, and others overwhelmed.

● In England the voucher system introduced to replace Free School Meals and support low income families with children is poorly designed and is failing many schools and families.

● Around 1.5 million families have applied for Universal Credit. The application process has been made much easier, sanctions and debt repayments have essentially ceased and the payment has been increased to £94 per week. Churches are however reporting that those with IT difficulties or needing assistance are facing waits of several weeks for assistance from the usual charities who provide help.

● Debt workers are reporting an increasing number of approaches around managing unsustainable debt.

● Huge income shocks are appearing for middle income families, some of whom are struggling to cope. There are reports of people needing assistance who would not ever have viewed themselves as benefit claimants or foodbank guests.

The groups we are most concerned about:

● families with no recourse to public funds. These are non-UK citizens who can no longer earn money due to the crisis but do not qualify for most benefits.

● low paid self-employed or gig workers who face an income shock with limited state support.

● families who need help with Universal Credit – most commonly due to IT or language difficulties.

● for all of these groups, families struggling with children face additional costs and risks.

Official data on the wellbeing of the UK paints a troubling picture of a generally more insecure and anxious population. Many have faced an income shock or worry that their family will be next.

Alongside this there is deepening concern about the unavoidable household debts building up , often in the form of unpaid rent or utility bills. As we think about how those who need it most may be given muchneeded security in the coming months and years, the biblical ideas of Jubilee – of freedom from the chains of debt - may offer some inspiration and challenge to churches, government and wider society.

Please read full publicaiton here.