Coronavirus pandemic ‘amplifying’ poverty in UK

The coronavirus pandemic is increasing poverty in Britain, where levels are already high after a decade of austerity triggered by the global financial crisis, according to experts. Official data shows that more than 14 million people in the UK are classed as living in poverty, or nearly one-quarter of the population. Some 4.2 million children are poor, or around 30 percent of the total, government figures show.

The situation is worsening with Britons losing jobs en masse as the UK experiences lockdown. Over the past fortnight, almost one million adults in the UK have applied for Universal Credit, the government’s main form of state aid. That is nearly 10 times the level in an average two-week period. As for families who were already classed as living in poverty prior to the outbreak — and whose children are stuck at home owing to schools being shut — the demands of online education add to the problem, she said.

But unlike the aftermath of the 2008 financial crisis when the government slashed public spending, COVID-19 has sparked huge state stimulus, including a boost to Universal Credit. An adult receiving the benefit who is aged over 25 will receive £1,000 ($1,239, 1,137 euros) extra per year. However an increase in the monthly amount to £400 remains far below the level of £600 considered sufficient for a single-person household to avoid “poverty” in the UK.

Meanwhile foodbanks, which help feed the most vulnerable people including the homeless, are seeing fewer donations amid fallout from the coronavirus. The Trussell Trust, which has a national network of 1,200 food banks, said it faced an “unprecedented challenge”. The government is however still providing children who ordinarily received free school meals with lunches.

Source: DJ

Author: Tuula Pohjola