People in the deepest level of poverty have experienced the largest negative employment impacts during the coronavirus pandemic

Social Metrics Commission warns that, as a result, both the incidence and severity of poverty could increase

People in the deepest level of poverty have experienced the largest negative employment impacts during the coronavirus (COVID-19) pandemic, the Social Metrics Commission (SMC) has reported.

Analysing YouGov survey data from around 80,000 people across the UK, the SMC has investigated the impact of the pandemic on people in different levels of poverty - those in deep poverty (more than 50 per cent below the poverty line), those in poverty (but less than 50 per cent below the poverty line), those just above the poverty line, and those more than 20 per cent above the poverty line.

In respect of employment outcomes, the SMC finds that those employed prior to the COVID-19 crisis who were in deep poverty were nearly twice as likely to have experienced some kind of negative labour change - reduced hours or earnings and/or been furloughed or lost their job - compared to those who were employed and more than 20 per cent above the poverty line prior to the Covid-19 crisis - 

Given the scale of the changes, the SMC warns that - 

• many of those already in poverty could move deeper into poverty as a result of losing their jobs or having lower earnings because of reduced hours or pay, exacerbating the already increasing trend in deep poverty seen over the last 20 years; and
• those previously close to, but above, the poverty line could move into poverty by their changing employment status, resulting in a significant increase in poverty.

Commenting on the research, Chair of the SMC Philippa Stroud said - 

'These results show that the nature, severity, and lived experience of poverty and the impact of the coronavirus pandemic on individuals, families, communities, and society as a whole are complex and driven by an interlocking range of factors. Understanding, measuring, and documenting the impact of the crisis and using the findings to drive an anti-poverty response will be central to ensuring that, as the economy begins to emerge from lockdown, the recovery balances up and benefits everyone across the whole of the UK. The Commission’s poverty measurement framework provides a comprehensive approach through which this can be undertaken, and against which the Government can be held to account, to ensure that poverty is less of an issue in the UK after the coronavirus crisis than it was before.'

For more information see SMC Report on Poverty and COVID from socialmetricscommission.org.uk