Coronavirus (COVID-19): guidance on tackling financial insecurity over winter
Guidance to local authorities to help tackle financial insecurity and support households with food and fuel over the winter
Who is at risk
While evidence suggests that the COVID-19 pandemic has impacted on overall prevalence of financial insecurity, the impacts are not felt equally by all groups in society.
Groups at increased risk of financial insecurity include:
- younger people
- disabled people
- lone parents
- minority ethnic households
- people living in households with children
- larger families
- people living in households on low incomes
- people living in the most deprived areas
These groups are more likely to experience difficulty affording food, fuel and other essentials. This may be due to recent changes in financial circumstances resulting from Coronavirus, such as loss of employment, or may be due to pre-existing pressures which have been compounded by Coronavirus.
It is estimated that around 75,000 people are most at risk due to income lost as a direct result of Covid-19 and that 630,000 people were in severe poverty prior to the pandemic, including around 160,000 children. Around 156,000 children and young people are estimated to be eligible for free school meals and 1 in 5 households with children report experiencing serious financial difficulty. Lower income households are more likely to have increased debts and more likely to have reduced their savings making it harder to manage financial pressures.
Many households are likely to experience additional costs associated with more time spent at home due to local COVID restrictions which will impact on fuel and other costs. Thought should be given to households with higher living costs, including those in rural areas or areas with fewer retail options. Many households are digitally excluded and may not have the skills, equipment, internet access or confidence to access financial support services.
Households that are worried about the adequacy of their budget may cut back or go without fuel, food or other essentials which can contribute to and exacerbate poor health and mental health. Focusing on income based approaches will provide households with greater choice and control.
An intersectional approach is essential. It is important to note that many of these groups overlap. For example, women, disabled people and those of many minority ethnicities are all more likely to be low earners; minority ethnic people are younger than the White population on average; and the vast majority of lone parents are women. Emerging evidence strongly suggests that COVID-19 is exacerbating pre-existing inequalities therefore it is vital that COVID-19 response, recovery and renewal effort takes account of overlapping disadvantage.
The table below summarises the issues likely to be faced by those with some protected characteristics and those experiencing socioeconomic disadvantage, and examples of support put in place by local authorities to reach these groups during the pandemic to date.
Group |
Possible needs of this group |
Ways in which support has been tailored by local authorities to target this group |
Those experiencing socio-economic disadvantage |
Those living in low income households and those living in the most deprived areas were more likely to live in poverty prior to the pandemic. Evidence shows that COVID-19 has exacerbated pre-existing socio-economic disadvantage, increasing the prevalence of food insecurity and fuel poverty. |
|
Children & younger people |
Households with children are more likely to be financially vulnerable, and are at increased risk of food insecurity, compared to households without children.
Younger people were already more likely to be financially vulnerable or in debt before the pandemic, and more likely to be experiencing difficulties affording food or fuel. Younger people were less likely to be in employment, and for those who were, this was less likely to be secure. Younger people are more likely to be working in sectors hit hardest by the pandemic.
Free school meal support that is provided through schools may not be accessible to Gypsy / Traveller children that are not regularly attending school but can be provided through trusted partners.
|
|
Disabled people |
Disabled people were already more likely to live in poverty and at an increased risk of experiencing difficulties affording food prior to the pandemic. COVID-19 has further exacerbated the financial vulnerability of disabled people, alongside introducing additional physical barriers resulting from reduced access unpaid care. A requirement to collect food and other essentials in-person may present a barrier to disabled people experiencing food insecurity, and disabled people may have specific dietary requirements resulting from their health condition. |
|
Older people |
Older people are less likely to be financially vulnerable and are at a lower risk of food insecurity compared to younger people, but there remains a proportion of older people concerned about affording food. Older people experiencing financial difficulties may face additional physical barriers to accessing essential supplies and services, especially those with limited support networks and digital literacy. A requirement to collect food and other essentials in-person may present a barrier to older people. |
|
Women |
Women are one of the groups on which the economic effects of the pandemic are falling disproportionately. COVID-19 is likely to have a disproportionate longer term impact on women in the labour market due to multiple factors such as women who are employed being less likely to be in secure employment, earn less on average than men and less likely to be eligible for sick pay. Women comprise the vast majority of lone parents who, before COVID-19, were much more likely to be in debt and/or financially vulnerable. Women are also more likely to report experiencing domestic abuse, which may further exacerbate financial insecurity, and present additional barriers to accessing support. |
|
Men |
While in the population as a whole women are more likely to work in many shutdown sectors and are expected to face larger negative labour market outcomes longer term, early labour market evidence suggests that, so far, men have seen greater levels of inactivity, greater rates of furlough and reduction in hours worked[1], which has impacted on their employment income. In addition, across many minority ethnic groups, men are more likely to work in shut-down sectors than women. |
|
Minority ethnic groups |
Minority ethnic groups are more likely to be in poverty and less likely to be in employment, placing them at increased risk of experiencing financial insecurity. Gypsy/Travellers may face additional barriers as their accommodation may not be suitable for holding large supplies of food and many delivery companies are unwilling to deliver to campsites. Low insulation in trailers and amenity blocks may require a higher level of energy to heat. |
|
Religion/belief/faith |
Food insecurity may be increased by difficulties with access and cost of specific food requirements such as Halal foods and traditional celebration foods such as for Passover and Ramadan. |
|
The Scottish Government has produced a paper, published on 17 September 2020, which reviews emerging evidence on the impact of the COVID-19 crisis on equality across several key domains: health, economic, education, safety and security, social and wellbeing, housing, digital, and environmental. The paper aims to be a useful reference to help inform the various response, recovery and renewal work being undertaken.
[1] Men saw greater falls in employment over the year to July to September 2020 and greater rates of furlough take-up than women at the end of June 2020 (HMRC Coronavirus Job Retention Scheme Statistics). While this might reflect sectoral patterns in the impact of the pandemic, with men more prevalent in some of the sectors with highest take up rates of furlough (e.g. construction where take-up rate was 73% at end of June 2020)[1], these disparities might be temporary. The structural labour market barriers (e.g. a disproportionate share of caring responsibilities, low pay occupations and insecure work) faced by women are more likely to impact in the longer term (see for example - Scottish Government, Gender Pay Gap Action Plan, Analytical Annex, March, 2019).
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