LONDON (Reuters) – British families affected by the loss of Kovid-19 jobs have suffered much larger declines in their incomes than in France and Germany, the Research Foundation said.
In 41 per cent of UK households, one or more people have been out of work, with their incomes falling by at least a quarter. In one report, the Foundation stated that only 20% of unemployed families in France experienced such a large drop in income, while in Germany the figure was 28%.
Unemployment rates in the three countries rose relatively low last year, especially compared to the global financial crisis of 2008, with government holiday programs encouraging companies to keep their employees on their books.
British families with declining incomes were more likely to incur more debt during the epidemic to cover their living costs, like German and French families.
Resolution economist Maja Gustafsson said the rapid introduction of the vaccine in the UK meant that the income crisis was expected to subside more quickly, but the inherent weakness in the domestic financing stock was at risk.
He said: “It is extremely important that the financial position of the families be strengthened as we are finally emerging from the COVID-19 crisis, so that they weaken in the next economic crisis.”
Britain’s Finance Minister Sage Craze announced on 3 March that an emergency COVID increase of £ 20 ($ 28) per week would be extended to state grants for low-income families, but only for six more months.
The Foundation said that one in three British families cut spending, compared to 23% and 21% in France and Germany, questioning the strength of the country’s economic recovery, with the government lifting a ban on coronoviruses.
The report notes that a significant drop in British spending is linked to the country’s restrictions on emerging coronoviruses, which are troubled by the poor financial condition of households in France and Germany as well as homes.
The Sankalp Foundation focuses on issues affecting low-income families.
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(Written by William Schomberg; Editing by David Mellon)