The Office for National Statistics (ONS) has released figures showing one major impact of coronavirus in that almost nine million people had to borrow more money in 2020.
The proportion of workers borrowing £1,000 or more since June last year increased from 35% to 45%. More borrowers were self-employed and a large increase of disabled people borrowing similar sums.
The ONS survey also revealed that young people and low earners had been hit the worst.
High-paid workers were more likely to be on full pay if they were unable to work.
When the pandemic restrictions are lifted there has been a lot of focus on a glut of savings to be released into the economy.
By December 2021 there is expected to be more over 30’s and homeowners able to save for the year ahead. However fewer 'renters' and under 30s expected to be able to save.
The latest national lockdown and the economic impact of school’s closure is not included in the analysis.
Employed parents were as likely to lose income although the gap closed as schools reopened. Fears this trend will have returned over the past month prevail.
Sadly, we are in unprecedented times and we hope the pandemic, when we get through this disaster, will give people more focus on the need to save some money as an emergency fund even if just a few pounds a week or month. We all need to adapt and take up a regular savings habit.