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Phoebe Arslanagic-Wakefield

Phoebe Arslanagic-Wakefield: Under stress? The experiences of benefit claimants during the pandemic

By Centre Write, Economy & Finance, Phoebe Arslanagic-Wakefield, Welfare

Introduction

Many people have had to lean on the social security system during the pandemic, some for the first time — the number of people claiming Universal Credit increased by 98% between January 2020 to June 2021 to six million.[i]

Pandemic-era research[ii] has already found that many benefit claimants have experienced serious economic stress since the pandemic struck, despite the Government’s temporary £20 uplift for those claiming Universal Credit and Working Tax Credit.[iii] For example, recent Bright Blue analysis[iv] found that significant minorities of Universal Credit claimants reported not being up to date with household bills and housing payments throughout the pandemic,[v] with a significant minority also reporting finding it difficult to manage financially throughout the pandemic. 

As part of Bright Blue’s ongoing project examining the inequalities of home working during the pandemic, we investigated differences in the experiences of benefit claimants and the rest of the public in the first year of the pandemic.

Our analysis uncovers two types of experience during the pandemic where significant differences between benefit claimants and the rest of the public emerge: financial and relational. 

Methodology

Polling was undertaken by Opinium and conducted between 19th and 26th February 2021. It consists of one sample of 3,003 UK adults, with 1,053 respondents who are benefit claimants and 1,950 respondents who are not benefit claimants. Benefit claimants refers to those receiving at least one benefit, such as Universal Credit or Disability Allowance. The sample was weighted by Opinium to reflect a nationally representative audience.

Financial

Benefit claimants are significantly more likely than the rest of the public to report having to dip into their savings to cover daily expenses over the first year of the pandemic, as can be seen in Chart 1 below. 

Chart 1. Views of the UK public on whether they have had to dip into their savings to cover daily expenses or not since March 2020, by benefit claimant status.

Base: 3,003 UK adults

While a majority of 52% of benefit claimants report having to dip into their savings to cover daily expenses over the first year of the pandemic, a minority of 29% of the rest of the public report the same. Indeed, the majority of the rest of the public (67%) report not having to dip into their savings to cover daily expenses since March 2020.

Benefit claimants are not only more likely than the rest of the public to report being forced to erode their savings in order to afford daily expenses over the course of the first year of the pandemic, but also to have to borrow more money to cover these daily expenses, as is demonstrated in Chart 2 below.

Chart 2.  Views of the UK public on whether they are borrowing more, the same amount as before, or less money to cover daily expenses since March 2020, by benefit claimant status.

Base: 3,003 UK adults

Though a plurality of benefit claimants report that they did not have to borrow money to cover daily expenses before March 2020 and still did not after a year (46%), over a quarter do report having to borrow more money to cover daily expenses (28%) over the first year of the pandemic. Fifteen percent report borrowing the same amount of money as before and 7% report borrowing less. 

In contrast, a firm majority of 79% of the rest of the public report that they did not did not have to borrow money to cover daily expenses before March 2020 and still do not, with only a small minority of 7% of them reporting that they have had to borrow more money during the first year of the pandemic. Seven percent of the rest of the public report borrowing the same amount of money as before and 4% report borrowing less.

In summary, benefit claimants appear to have been more significantly impacted by the pandemic financially than the wider public: they have been at a higher risk of being forced to lean on their savings and to borrow more money simply to be able to cover daily expenses over the first year of the pandemic.

Relational

Disturbingly, we also found a marked difference between benefit claimants and the rest of the public in terms of their likelihood of experiencing domestic abuse since the pandemic began. We focus on this as some evidence has emerged that lockdown measures have seen the incidence and intensity of domestic abuse increase.[vi]

Asked whether, since March 2020, they have experienced domestic abuse, our polling shows that benefit claimants report experiencing domestic abuse during the first year of the pandemic at a much higher rate than the rest of the public, as is shown in Chart 3 below.

Chart 3. Views of UK adults on whether they have experienced domestic abuse since March 2020, by benefit claimant status.

Base: 3,003 UK adults

Though a clear majority (80%) of benefit claimants report that they have not experienced domestic abuse since March 2020, 12% of report that they have and 6% report that they have not but are concerned that they may. 

In comparison, 94% of the rest of the public report that they have not experienced domestic abuse, 1% report that they have and 3% that they have not but are concerned that they may. 

This means that there is a 14-percentage point difference between benefit claimants and the rest of the public in having experienced or been at serious risk of domestic abuse during the first year of the pandemic.

Previous research shows that those in lower income groups are at a higher risk of domestic abuse. Though benefit claimants are a diverse and broad group, the link between lower incomes and a higher risk of domestic abuse may in part explain what we have found: that benefit claimants have been at a disproportionate risk of domestic abuse during the pandemic in comparison with the rest of the public.

Conclusion 

In providing insight into particular aspects of the financial and relational experiences of benefit claimants during the pandemic, our polling analysis puts a spotlight on how they have experienced the first year of the pandemic differently to the rest of the public. 

We have found that not only have benefit claimants been at a higher risk of experiencing domestic abuse during the first year of the pandemic, but that the pandemic has acted to undermine their financial resilience.

Notes

The relevant data tables for the polling can be found here

We are grateful to Opinium for advising on and carrying out the survey, and to Barrow Cadbury Trust and Trust for London whose sponsorship have made this work possible. Barrow Cadbury Trust and Trust for London do not necessarily endorse this analysis, over which Bright Blue retains complete editorial control.

 

References 

[i] ONS, “Universal Credit statistics, 29 April 2013 to 10 June 2021”, https://www.gov.uk/government/statistics/universal-credit-statistics-29-april-2013-to-10-june-2021 (2021).

 

[ii] Patrick Butler, “One in six new universal credit claimants forced to skip meals”, The Guardian, 19 February, 2021.

 

[iii] K. Summers et al., “Claimants’ experiences of the social security system during the first wave of COVID-19”, Welfare — At A Social Distance and Economic and Social Research Council (2021).

 

[iv] Anvar Sarygulov, “Benefit to all? Financial experience of Universal Credit claimants during the pandemic”, Bright Blue, http://www.brightblue.org.uk/benefit-to-all/ (2021).

 

[v] “New projects”, Bright Blue, http://www.brightblue.org.uk/research/.

 

[vi]  Ryan Shorthouse and Phoebe Arslanagić-Wakefield, “Domestic abuse is everyone’s business”, ConservativeHomehttps://www.conservativehome.com/platform/2021/02/ryan-shorthouse-and-phoebe-arslanagic-wakefield-domestic-abuse-is-everyones-business.html (2021); ONS, “Domestic abuse in England and Wales overview: November 2020”, https://www.ons.gov.uk/peoplepopulationandcommunity/crimeandjustice/bulletins/domesticabuseinenglandandwalesoverview/november2020 (2020).

 

[Image: Engin Akyurt]

Phoebe Arslanagic-Wakefield: Increasingly precarious? Young adults during the pandemic

By Centre Write, Economy & Finance, Phoebe Arslanagic-Wakefield

Introduction

It has been much commented that young adults aged 18-34 have received a particularly raw deal over the past year: much less likely than older age groups to suffer the more serious health consequences of Covid-19, but much more likely to be disproportionately impacted in terms of their finances and freedoms thanks to pandemic lockdown measures.

As part of Bright Blue’s ongoing project examining the inequalities of home working during the pandemic, we wanted to ascertain whether there were differences by age in experiences, to explore whether young adults were indeed struggling more as a result of Covid-19 and the resulting lockdown measures.

Our analysis finds that there are three types of experience during the pandemic where significant differences between different age groups emerge: financial, psychological and relational.

Methodology

Polling was undertaken by Opinium and conducted between 19th and 26th February 2021. It consists of one sample of 3,003 UK adults, with 836 respondents aged 18-34, 997 aged 35-54 and 1,171 aged over 55. The sample was weighted by Opinium to reflect a nationally representative audience.

Financial

Those aged 18-34 are most likely to report their personal income has neither increased nor decreased since March 2020 (42%). But 29% of them report an increase and 20% report a decrease, meaning – somewhat surprisingly – that those aged 18-34 are the age group most likely to report that their personal income has increased since March 2020, as shown in Chart 1 below.

In comparison, 20% of those aged 35-54 and 15% of these aged over 55 report that their personal income has increased since March 2020. This means that 18-34 year olds are the only age group which are more likely to report they have experienced an increase in their personal income than a decrease since March 2020. This contradicts the prevailing assumption that young adults have fared worse financially as a result of Covid-19 and the resulting lockdown measures.

However, other data from Chart 1 paints a different picture. A majority (53%) of those aged 18-34 report having to dip into their savings to cover daily expenses since March 2020, while 40% report not having to do so, making those aged 18-34 the age group most likely to do so. In contrast, a minority of those aged 35-54 (37%) and over 55 (26%) report having to dip into their savings to cover daily expenses since March 2020, with a majority in both of these age groups reporting not having to do so (59% and 73% respectively).

Young adults not only seem to have been more reliant on savings during the pandemic, but on borrowing too. Though those aged 18-34 were most likely to report that they did not have to borrow money to cover daily expenses before March 2020 and still do not (44%), nearly a quarter (24%) report having to borrow more money to cover daily expenses, making them the age group most likely to do so. Meanwhile, 14% reported borrowing the same amount as before and 9% borrowing less.

A majority of those aged 35-54 (62%) and aged over 55 (89%) report that they did not have to borrow money to cover daily expenses before March 2020 and still do not. Most notably, only 16% of these aged 35-54 and 5% of those aged over 55 report borrowing more to cover daily expenses.

Overall, young adults aged 18-34 in some respects have been financially worse impacted as a result of the pandemic and resulting lockdowns, relying on their savings and borrowing more. But in other respects – specifically whether their personal income has increased – young adults aged 18-34 are more likely to have done better than other age groups since March 2020.

Psychological

Having shown variation in financial experiences since the start of the pandemic relative to other age groups, we also found a differing impact of Covid-19 and lockdown measures on young people’s mental health. As Chart 2 below illustrates, asked whether, since March 2020, their mental health has improved, young adults are most likely to report it has worsened (36%). This means that those aged 18-34 are the only age group where the highest proportion of people report experiencing worsening mental health. However, interestingly, they are also the age group with the highest proportion of people reporting their mental health has actually improved, with over one in five (22%) of young people reporting this.

Meanwhile, those aged 35-54 are most likely report that their mental health has neither improved nor worsened since March 2020, with nearly half (46%) reporting this. However, the same proportion of 35-54 year olds report that their mental health has worsened as 18-34 year olds, with 36% reporting this. Meanwhile, a firm majority of 64% of those aged over 55 report that their mental health has neither improved nor worsened since March 2020, with 30% reporting it has worsened.

Yet, a much smaller proportion of those aged 35-54 (14%) and aged 55+ (3%) report that their mental health has improved during the pandemic relative to the youngest adults.

As such, when it comes to psychological experiences, young adults seem to have been the age group most likely to have experienced both better and worse mental health during the pandemic and resulting lockdown measures.

Relational

We also unearthed important differences by age group on a particularly sensitive subject: the experience of domestic abuse since the start of the pandemic. There are already widespread fears that this dreadful aspect of people’s relational experiences has grown in prevalence and intensity because of lockdown measures. [i]

Asked whether, since March 2020, they have experienced domestic abuse, our polling shows that those aged 18-34 report experiencing domestic abuse since March 2020 at a higher rate than other age groups, as is shown in Chart 3 below.

Seventy-nine percent of those aged 18-34 report they have not experienced domestic abuse since March 2020. However, a troubling 11% report that they have and a further 7% that they have not but are concerned that they may.

In comparison, stronger majorities of those aged 35-54 (88%) and over 55 (97%) report they have not experienced domestic abuse since March 2020. Equally, smaller minorities of those aged 35-54 (6%) and over 55 (1%) report that they have experienced domestic abuse or that they have not but are concerned that they may (6% and 1% respectively).

Previous research has indicated that younger adults are at a higher risk of domestic abuse [ii], but our polling shows starkly that for nearly a fifth of young adults (18%), the homes we have all been forced to retreat to over the past year have not been a safe place.

Conclusion 

Our polling provides a snapshot of particular aspects of the financial, psychological and relational experiences of those aged 18-34 during the pandemic.  

Our analysis shows that the experience of those aged 18-34 since March 2020 is distinct in these experiences from that of older age groups. This age group are at a higher risk of having experienced domestic abuse since March 2020, while their experience around their finances and mental health has been much more mixed. Young adults seem to have been more likely to experience both better and worse financial and mental health during the pandemic and resulting lockdowns. 

Notes

The relevant data tables for the polling can be found here. 

We are grateful to Opinium for advising on and carrying out the survey, and to Barrow Cadbury Trust and Trust for London whose sponsorship have made this work possible. Barrow Cadbury Trust and Trust for London do not necessarily endorse this analysis, over which Bright Blue retains complete editorial control.

 

[i] Ryan Shorthouse and Phoebe Arslanagić-Wakefield, “Domestic abuse is everyone’s business”, Conservative Home, https://www.conservativehome.com/platform/2021/02/ryan-shorthouse-and-phoebe-arslanagic-wakefield-domestic-abuse-is-everyones-business.html (2021).

 

[ii] “Who are the victims of domestic abuse?”, Safe Lives, https://safelives.org.uk/policy-evidence/about-domestic-abuse/who-are-victims-domestic-abuse (2015).

What is the point of aid?

By Home, Joseph Silke, Phoebe Arslanagic-Wakefield, Podcast

This edition of our Heads Apart? podcast explores the role of overseas development spending in promoting the UK’s interests around the world. We are joined by James Rogers, Co-Founder of the Council on Geostrategy, and Sophia Gaston, Director of the British Foreign Policy Group.

We also speak to the Chair of the Women and Equalities Committee, the Rt Hon Caroline Nokes MP, about women and COVID-19, trans rights and whether Boris Johnson is a feminist.

Included is a research update from Anvar Sarygulov on our latest analysis: Shaky foundations.

Music credit: Lights by Sappheiros and Storybook & Upbeat Party by Scott Holmes

Presented by: Joseph Silke and Phoebe Arslanagić-Wakefield  | Produced by: Joseph Silke

Is it time for a UBI?

By Home, Joseph Silke, Phoebe Arslanagic-Wakefield, Podcast

This edition of our Heads Apart? podcast explores whether it is time to introduce a universal basic income (UBI). We are joined by Ian Goldin, Professor of Globalisation and Development at the University of Oxford, and Anthony Painter, the Chief Research & Impact Officer at the RSA.

We also speak to the Chair of the Education Committee, Robert Halfon MP, for Bright Blue MP about the effect that the Covid-19 pandemic is having on the education system.

Included is a research update from Anvar Sarygulov on our latest report Widening chasms.

Music credit: Lights by Sappheiros and Storybook & Upbeat Party by Scott Holmes

Presented by: Phoebe Arslanagić-Wakefield and Joseph Silke  | Produced by: Joseph Silke

Does Number 10 need a new approach?

By Home, Joseph Silke, Phoebe Arslanagic-Wakefield, Podcast, Ryan Shorthouse

This edition of our Heads Apart? podcast explores whether Number 10 is in need a new approach. We are joined by James Frayne, the Director and Founding Partner at Public First, and Flora Coleman, the National Chairman of the Tory Reform Group.

We also speak to the comedian, impressionist, and writer, Matt Forde, for a Deep Dive about his new book Politically Homeless and the revived series of Spitting Image.

Included is a research update from Phoebe Arslanagić-Wakefield on our latest report A better reward? Public attitudes to citizenship.

Music credit: Lights by Sappheiros and Storybook & Upbeat Party by Scott Holmes

Presented by: Joseph Silke and Ryan Shorthouse  | Produced by: Joseph Silke