Spring Budget 2021: Household debt, gender and Covid-19

Key Points

• Before the coronavirus pandemic women, especially low-paid, disabled and Black, Asian and ethnic minority women, were more likely than men to be in debt: 61% of those getting into debt to purchase everyday necessities are women.
• Early warnings signs suggest that the lockdowns and inadequate social security system has caused widespread financial hardship, unemployment and debt.
• By the end of 2020, a third of households had reported a fall income, 6 million people had fallen behind on at least one household bill, and 17% of the population had borrowed more or used credit as a result of the coronavirus outbreak.
• Covid-debt is gendered: 30% of women report being negatively affected financially by the pandemic compared with 26% of men.
• Mothers, lone parents, BAME women, young and disabled women are most at risk. For example, in April 2020, a quarter of BAME mothers reported that they were struggling to feed their children and 32% of young women reported finding it hard to pay for essentials.

View and download the full briefing here.