Household Debt, Gender and Covid-19

Key points:

Before the coronavirus pandemic women, especially low-paid, disabled and Black, Asian and ethnic minority women, were more likely than men to be in debt: 61% of those getting into debt to purchase everyday necessities are women.
Early warnings signs suggest that the lockdown, furlough scheme and inadequate social security system has caused widespread financial hardship, unemployment and debt:
A third of households have reported a fall income, 6 million people have fallen behind on at least one household bill, 3.8 million have borrowed to make ends meet since the beginning of lockdown.
Covid-debt interacts with gender inequality: 30% of women report being negatively affected financially by the pandemic compared with 26% of men.
Mothers, lone parents, BAME women, young and disabled women are most at risk. For example, in April, a quarter of BAME mothers reported that they were struggling to feed their children and 32% of young women reported finding it hard to pay for essentials.
The Government must take short term and long-term action to alleviate poverty and hardship by suspending restriction in the social security system, increasing hardship funding, exploring debt relief and, prioritising well-paid secure work.