Britain’s finances hit epidemic poverty harder than France and Germany

According to a new report, weak social security nets and a decade of austerity have catapulted Britain into an epidemic of poverty.

Britain living in poverty had 20% lower income than the poorest households in France before the epidemic. Picture: Pexels

The british houses were Kovid-19 is most affected by poverty Based on a traditional comparison of the effects of epidemics on inequalities, compared to their French and German counterparts.

People in Britain “have a much greater impact” on their standard of living than in Britain and are more likely to take loans, although they have lost their jobs under detention. Analysts said Britain’s “weak” social security system allowed people to get through the gaps.

A high level of poverty and fewer people with substantial savings before the epidemic also made family finances less resistant to the economic impact of Kovid-19’s equally wealthy European countries, even though the median income was much higher.

One in three British families (33%) say they have to reduce their spending, 22% in France and 21% in Germany.

Meza Gustafson, economist at the Resolution Foundation, said, “It is imperative that the financial condition of households be stronger when we finally emerge from the Kovid-19 crisis, so that they are less exposed during the next economic crisis.” Studied.

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“Homes in the UK, France and Germany generally had similar income levels on the eve of the Kovid-19 crisis. But underlying this similarity are large differences in households’ financial resilience, as UK homes have fewer savings to use and a much less generous benefit system to protect them in difficult times. “

When at least one person lost his job during the epidemic, two out of five (41 per cent) of the UK faced a drastic reduction in income by at least 25 per cent.

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The rate was twice that of France (20%) and much higher than in Germany (28%).

Before the first closure last March, the poorest homes in Britain had incomes of 20% lower than the poorest households in France.

Researchers said that the UK government has implemented very strict and long-lasting sanctions that affect the national economy used in France and Germany.

“These gaps were exposed in the financial stability of UK families during the Kovid-19 crisis,” Gustafsson said. “They are likely to face a larger impact on living standards than French and German households, and they are more likely to incur debt to cope with these financial shaking”.

People in the UK who suffered financially during the epidemic were twice as likely to take more loans to cover the costs of those living in France and Germany.

For the successful launch of the vaccine, according to the report, the end of the crisis appears “closer in the UK than in other parts of Europe”. But it should not “distract policy makers from the relatively weak financial resilience of UK households”, which has left them “much more exposed” to economic crises than others in Europe.

According to the report, the financial impact of the epidemic on families will be beyond lockdown, and researchers have called on leaders to respond in a way that keeps families out of poverty for a long time.

Chancellor Sage Craze introduced a series of temporary aid measures at the start of the crisis, including a weekly universal increase of £ 20, but is expected to decrease in September.

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