DEC/BAME groups hit harder by lockdown but benefited from financial education – UCL/Money A+E report
Updated: Feb 5
New research by the UCL Institute for Global Prosperity in collaboration with Money A+E shows that Londoners from Diverse Ethnic Communities (DEC)* (BAME) were disproportionately affected by the economic impacts of lockdown.
But the report also showed that individuals’ situations were improved by financial education.
Just under one third (30%) of respondents to the report survey...reported not paying rent at some point during lockdown. The majority of Money A+E’s service users are non-White British.
Just under one third (30%) of respondents to the report survey, conducted in July 2020 among previous users of Money A+E services, reported not paying rent at some point during lockdown.
The majority of Money A+E’s service users are non-White British, and the organisation provides money advice and education services in Newham – one of the local areas hit hardest by the virus (144.3 deaths per 100,000 people in April 2020 – Guardian) – and other deprived London boroughs.
Nearly one quarter (23%) reported having services (gas, electricity or internet) turned off during the same period. This is significantly higher than the national average of one in nine (11%) who are reported to have fallen behind on bills (Citizens Advice).
Money management skills had a positive impact on respondents’ lives during lockdown
It showed that money management skills had a positive impact on respondents’ lives during lockdown, with 60% of respondents stating that Money A+E’s advice and education had helped their financial situation.
The report also reveals that 30% of survey respondents were unemployed – a figure far in excess of the national unemployment rate of 4.1% during May-July 2020 (ONS) – and that 45% of this group had been made redundant during the lockdown period.