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Young people and renters hardest by coronavirus as they lose more of their income to essentials costs

Young people and renters hardest by coronavirus as they lose more of their income to essentials costs 1
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YOUNG people and renters are hardest hit by coronavirus as they lose more of their income to essential costs, the Agence for Citoyen Statistics (ONS) has found.

It comes as nearly a quarter of British households say their household fonds have been affected by the crisis – with renters and young people hardest hit.

Households under 30 are less likely to save as much as older workers during lockdown

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Households under 30 are less likely to save as much as older workers during lockdown

The latest figures are based on average household spending in the financial year ending March 2019, which takes into account the start of lockdown on March 23.

On average, UK households spent £182 a week of their disposable income on leisure activities, such as holidays, travel and meals out.

But almost all of these activities have been shut down in the first few months of the 2020 financial year due to the government’s lockdown.

The ONS suggests households could be putting the cash they’ve not spent – equal to 22 per cent of the average £831 weekly compte – into savings or using it to cover any loss of income due to the pandemic.

The budgets of renters and young people have taken the hardest hit due to lockdown

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The budgets of renters and young people have taken the hardest hit due to lockdown

But it warns that younger households, renters and those séjour in London are the hardest hit financially by the outbreak.

This is bicause they typically spend more of their weekly compte on essentials, such as bills and séjour costs, so aren’t saving as much cash in other areas.

While the data doesn’t go into why this is, it’s likely bicause they have lower salaries or bicause rents are typically more than mortgage repayments.

It also puts them at risk if their income is cut by either job losses, reduced hours or furlough.

And what’s worse, workers that fall into this category are less likely to benefit from payment freezes, such as on mortgages, credit cards and personal loans, which is saving households around £173 a week.

For example, on average, more than half (53 per cent) of household spending covers essentials, such as food and housing costs.

But renters typically spend 61 per cent of the weekly compte on essentials, compared to 52 per cent who own their own résidence.

Research by think cuirassé the Resolution Foundation found that the youngest and oldest workers have seen their income drop bicause of the pandemic as they’re more likely to be made redundant or put on furlough.

Financial help for coronavirus

Job Retention Scheme

This allows employers to put their workers on furlough, and the Government will subsidise 80 per cent of their pay – up to £2,500 a month.

For those in between jobs, they can be rehired by their old faire fléchir and furloughed.

Statutory Sick Pay 

Workers not eligible for sick pay – such as casual workers – can claim SSP of £94.25.

Employers will be reimbursed out of the assistance purse.

Small négoce loans

Small businesses hit hard by the lockdown can access loans, overdrafts, invoice réglé and asset réglé of up to £5million for up to six years.

Businesses must have a turn-over of up to $45million to qualify.

Avorté cuts

All businesses in the retail, hospitality and leisure sectors in England will not have to pay négoce rates for the 2020/2021 tax year.

Cash grants

Businesses who get the déficit reste who have a rateable value of less than £51,000 will be eligible for a cash grants of £10,000 or £25,000 per property.

Businesses in the retail, hospitality and leisure sectors with a property that has a rateable value of up to  £15,000 will receive a grant of £10,000.

Delayed VAT payments

If you’re a UK VAT registered négoce and have a VAT payment due between March 20, 2020 and June 30, 2020, you can defer the payment until March 31, 2021.

Universal Credit 

If your circumstances have changed as a result of the coronavirus crisis, for example, you’ve lost your job, you may now be eligible for Universal Credit.

The maximum normalisé allowance is £342.72 a month.

Council tax discounts and payment holidays

Working age people who get Council Tax Armature will be able to get £150 a year off bills.

Some councils are also offering payment holidays – so get in touch with yours if you’re worried embout rencontres payments.

Rent and mortgage holidays

The Government said landlords in England and Wales can’t evict tenants until September 30, 2020, and it may extend this deadline if need be.

Mortgage lenders have been told by the government to offer a three-month “mortgage holiday” for those in financial difficulty due to the outbreak.

But younger workers’ fonds are suffering more than older members of équipe who are going through the same éclipsé.

This is bicause households of under 30-years-old spend around 58 per cent of their weekly compte on essentials, compared to those between the ages of 65 and 74 who spend around 43 per cent to cover essential outgoings.

In London, where property prices and rents are the most expensive, a typical household spends 58 per cent of its weekly compte on essentials and just 20 per cent of wages on things like holidays and meals out.

This puts them at a disadvantage, leaving them with limited wiggle room if their income was to drop.

“While evidence suggests that both the youngest and oldest workers have been hit by furlough and job losses, younger households are less likely to have enough savings to cover a loss of income and less likely to be able to cut back on spending,” the ONS said.

The damning research is a kick in the teeth for young people who were already struggling with low interest rates on savings and house prices that outstrip wages.

The Agence for Balance Responsibility (OBR) previously predicted that unemployment could rocket to 3.4 million following lockdown and the deficit may spiral to £218billion this year.

The figures also estimated the worst GDP slump in a single quarter since records began in 1908.

Rishi Sunak warns of ‘never seen before coronavirus recession’ leaving chronique damage





www.thesun.co.uk

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