A third of UK households experiencing reduced income due to COVID-19

Jessica Bird

April 22, 2020

reduced income

More than nine million households, a third (33%) of those in the UK, have less money coming in due to the impact of COVID-19 lockdown measures, according to research by comparison site GoCompare.

One in five (21%) of UK adults are now working from home, while 12% have been furloughed and 4% have lost their job.

A further 8% are concerned that they will lose their job in the future.

15% have experienced a drop in their finances, and 19% have had to make an emergency budget to manage during lockdown.

10% of those surveyed said they were concerned about going overdrawn, 8% are using credit cards to pay for essentials, and 6% are borrowing money from friends and family.

Of those concerned with going overdrawn, 47% had not contacted their bank because they were either unaware of the help available or sceptical that it would be forthcoming.

Meeting mortgage or rent payments were a concern for 10% of those surveyed, but only 23% of these individuals had contacted either their lender or landlord to arrange a payment holiday.

Two-fifths (40%) said they had not been in contact because they did not know they could ask for help, or did not think it would be forthcoming.

14% of UK households were found to be worried about repaying existing loans and credit card spending as a result of the pandemic.

Of these, 26% had been in contact with their lender and 21% had received a payment holiday, but 49% were either unaware of the support options or did not think they would be able to access it.

Lee Griffin, CEO and founder of GoCompare, said: “Millions of people are experiencing a sudden drop in income as a result of the coronavirus.

“With no certainty on when the lockdown measures will be lifted, people are understandably worried about how they will make ends meet.  But there is help available.

“If you’re struggling with your finances now or think you will soon, don’t ignore the problem in the hope it will go away.

“Check to see what benefits you are entitled to and find out how to access them and if you’re having difficulty in making payments or repaying loans, contact the relevant organisation as soon as possible to make more affordable arrangements.”

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