Families with children hit hardest by the pandemic

Four million children live in a family which has lost income since the start of the pandemic, according to a new study.

The study by the Standard Life Foundation found that more than a quarter (27%) of UK families are currently living on a reduced income as a direct result of a pandemic-related loss of earnings, compared with 17% of households without children.

The analysis shows the drop in incomes is hitting families hard.

According to the report, 3m children in the UK now live in a family that is struggling to buy food and other essentials.

The research was conducted in January and analysed by the Personal Finance Research Centre (University of Bristol).

It is the fourth in Standard Life Foundation’s coronavirus financial impact trackers series which has been tracking household finances since the start of the pandemic.

As a result of the economic impact of the pandemic, families with dependent children are three times as likely as other households to have claimed Universal Credit since March 2020 (9% of families vs. 3% of households without children), and to still be claiming it in January 2021 (6% vs. 2%).

This means about 1.2 million children live in families that have claimed Universal Credit because of the pandemic; 800,000 of whose parents are still claiming it.

‘Almost a third of children in the UK live in families who have experienced a drop in income due to the pandemic, and for many this will have long-term impacts,’ said foundation chief executive, Mubin Haq.

‘Families with children are twice as likely to be facing financial hardship compared to households without children and on a range of indicators are more severely affected. It will be distressing for many that 1 in 5 families are struggling to pay for food.

‘Whilst much support has been provided by the UK government there has been a blinkered approach to children. During the pandemic, families with children were three times more likely to claim universal credit, and are much more dependent on this lifeline. Yet the £20 a week increase has only been extended for six months. This must be made permanent. However, we also need to see significant increases in child benefits, mirroring the approach in Scotland, if we are to improve the life chances of our children.’

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