08 | BIGISSUE.COM FROM 01 MARCH 2021
Before Covid-19, 22 per cent of the UK population were living
in poverty, with 2.4 million people destitute. As the pandemic
continues to wreak havoc with people’s livelihoods, Universal Credit
has become a lifeline for more people than ever before. Claims have
risen 90 per cent since the start of the pandemic, and almost 4.
million households (41 per cent with children) now depend on it to
stay afloat.
However, the real value of social security benefits was already
eroding prior to the crisis. So, even with an uplift to some benefits,
many people using social security still do not have enough to buy
essentials and have to borrow money to pay their rent or put food
on the table.
By December, nearly nine million people had borrowed money
because of the pandemic, and foodbanks were seeing a 47 per cent
increase in demand. If one of the key markers of a successful social
security system is its ability to prevent people from falling into
poverty, ours is failing.
But who is bearing the brunt of increasing poverty? Who is
waiting in line at the foodbank? Who is having to prioritise the cost
of their prescription over electricity this month?
This is a crisis taking the heaviest toll on those already near, on
or below the poverty line. Prior to the crisis, we knew that you were
more likely to experience poverty and debt if you were female, from
a BAME community, disabled, a single parent (90 per cent of whom
are women) or a combination of the above. So, it should come as no
surprise that these disadvantaged groups are bearing the brunt of
this economic crisis.
For those still in employment, poverty is hitting workers in
low-pay sectors like retail and hospitality the hardest. These workers
are more likely to be women, BAME, and young. Single parents are
more likely to be in in-work poverty than any other family-type.
During the first lockdown, the Institute for Employment Studies
found four million low-paid workers were twice as likely to lose
hours or be furloughed. For agency workers or those on zero-hours
contracts the situation is even harder, with many losing their jobs
or having hours reduced without being entitled to furlough. Prior
to the crisis, women continued to be overrepresented in part-timeThe Covid-19 crisis has hit women particularly hard, with the economic
impact felt most keenly on the sectors that predominantly employ
them. With International Women’s Day on March 8, we look at how we can
ensure the support is there – whether from government or initiatives like
Big Issue Jobs & Training – to prevent more people falling into povertyand involuntary part-time employment (74 per cent and 57 per cent
respectively), as well as temporary and zero-hours contracts (
per cent of both are women), strongly suggesting they have been
particularly impacted.
Additionally, with official statistics on the number of those
falling into unemployment being called into question, the situation
could be far worse than officially recognised. The loss of 300,
jobs in hospitality, 160,000 in wholesale and retail, and 89,000 in
arts, entertainment and recreation may not have been included
in the official employment figures. Concerningly, these are all
industries dominated by women, possibly painting a far more
significant fall in women’s employment than officially recorded.
In the context of this unprecedented labour market shrinkage,
there is an urgent and immediate need to recognise the importance
the Universal Credit uplift has made to millions around the UK, and
to continue with this vital lifeline. Removing the £20 uplift in April
will lead to 1.2 million more people falling into poverty within a year
and a further 730,000 children facing the same fate by 2024-25.
Sixty-two per cent of people are in favour of keeping the uplift in
April, compared with 20 per cent against.
However, in recognition of increasing inequality and hardship
caused by the pandemic, the government should be going much
further. Amnesty on current debt to the DWP, grants rather than
loans to cover the five-week Universal Credit wait, raising housing
benefits to the 50th percentile and raising child benefit to £
per week could together see a more adequate response to the
worsening poverty faced by so many.
If we have learned anything from the current crisis it is that care
for others, whether in our family, our community, our workplace, or
further afield should be recognised as the bedrock of a successful
and thriving society. Keeping the uplift, and instating these
measures would be a big step towards a recognition that there are
deep inequalities, destined only to get worse unless we put care at
the centre, both right now and as we weather the storms to come.Anna Johnston is research assistant at
UK Women’s Budget GroupWords: Anna Johnston
‘WOMEN’S WORK IS THE
BEDROCK OF SOCIETY –
IT’S TIME THEY GOT THE
SUPPORT THEY NEED’