This archive report was first published on 9 June 2020.
As the world grapples with the economic impact of the coronavirus pandemic, a stark reality has emerged: the wealth gap is widening, and those who were already struggling are falling further behind.
According to a recent study by the Resolution Foundation, high-income families are more than three times as likely to have become richer since the lockdown hit than poorer ones. In fact, 38% of richer families managed to strengthen their bank balances during this time, compared to just 12% of worse-off households.
But it's not just the numbers that paint a dire picture. The study also found that poorer households are much more likely to say that their ability to manage financially has worsened than improved. A staggering 37% of those in the lower income bracket reported a decline in their financial situation, compared to just 10% who reported an improvement.
Meanwhile, a separate report from StepChange Debt Charity warned of a 'personal debt tsunami' of around £6 billion of additional household debt directly attributable to the pandemic. The charity estimates that 4.6 million people have already accumulated £6.1 billion of arrears and debt.
As the situation continues to unfold, it's clear that the economic impact of the coronavirus pandemic will be felt for a long time to come. But with the right support and measures in place, it's not too late to mitigate the damage and help those who are struggling to get back on their feet.
