Coronavirus: the Poorest households in the financing of locking with debt, says think tank

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Low-income households are using savings and borrowing more in the course of the coronavirus lock, while the richest families are saving more than you eat, and travel abroad is prohibited.

This is according to a study by the Resolution Foundation, a think tank.

Low-income households are two times more likely than the wealthiest have increased their debt during the crisis, he said.

Workers during the shutdown of parts of the economy have, on average, savings of £1 900, it has found.

This compares to the £4,700 buffer of someone who has been able to work from home during lockdown.

“Pre-coronavirus Britain has been marked by soaring wealth and damage to the wealth gaps between households,” said George Bangham, economist at the Resolution Foundation.

“These wealth divides have been revealed by the crisis. While high-income households have built their economies, many low-income households have executed their bottom, and to turn to high-interest credit. ”

The differences in wealth across the country have also increased, with London and the South East, accounting for 38% of all wealth between 2016 and 2018, compared to 32% a decade earlier.

Wealth inequality is almost twice as high as income inequality, he adds.

Impact on young people

Last month, the think tank found that young people are more likely to have lost their jobs or seen their income decrease as a result of Covid-19.

More than one in three 18-to 24-year-old is earning less than before the epidemic, it has found.

He said that the young workers, at the peril of their compensation for years, while the older staff may find themselves involuntarily retired.

Last year, another think tank, the Institute for Fiscal Studies, has found that the widening of inequality of remuneration, health and opportunities in the united KINGDOM are undermining confidence in democracy.

He is to be warned of runaway incomes for high earners, but increase in the ” dead of despair “, such as addiction and suicide, among the poorest.

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