Londoners receiving benefits surge 200 per cent over the pandemic
The capital was hit by the highest jump in financial vulnerability in the UK during the pandemic, new research has shown.
Londoners receiving benefits surged 200 per cent in the months between the final quarter of 2019 and the first quarter of 2021, according to Lowell’s Financial Vulnerability Index – meaning that more than 20 per cent of adults in the city were claimants.
“We are concerned about our nation’s financial health. With Covid-19 support falling away, we can already see vulnerability ticking up,” Lowell UK CEO, John Pears cautioned.
“This has been rising since 2017 and we need to have an honest conversation about why.”
Pears added that systemic challengers and “debt traps” are not being addressed, which has prompted the steep rise those needing social benefits.
“There is not one solution to this. The government is doing some good work to break debt cycles, piloting no-interest loan schemes,” he explained.
“But there is more to do and we are working with others in our sector to help customers rebuild financial health over the long-term and build resilience for the future.”