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<\/p>\nMore than a quarter of UK adults have been struggling financially in the wake of the coronavirus pandemic, according to a survey by the City watchdog.<\/p>\n
The Financial Conduct Authority (FCA) estimated that the number of people with “low financial resilience” rose from 10.7 million to 14.2 million over the course of 2020.<\/p>\n
An overall, wider measure of vulnerability has also grown – with younger and BAME (Black, Asian and minority ethnic) adults more likely to have suffered, the survey found.<\/p>\n
The poll in October showed 27.7 million adults in the UK were affected by poor health, recent “negative life events” or financial struggles, up from 24 million in February.<\/p>\n
More than 22,000 people responded to the Financial Lives survey, which focused on the impact of the pandemic on consumers.<\/p>\n
The survey classified people with low financial resilience as those who had heavy debts, low levels of savings, or erratic earnings.<\/p>\n
It showed that 30% of adults expected their household income to fall during the next six months while 25% expected to struggle to make ends meet.<\/p>\n
The poll found 33% of adults reported they were likely to cut back on essentials and 11% saying they were likely to use a food bank, with 16% expecting to take on more debt.<\/p>\n
Yet it also showed that, financially, 48% had not been affected while 14% had actually seen an improvement.<\/p>\n
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Nisha Arora, director of consumer and retail policy at the FCA, said: “Many of the findings are worrying.<\/p>\n
“Since the start of the pandemic, the number of people experiencing low financial resilience or negative life events has grown.<\/p>\n
“The pain is not being shared equally with a higher than average proportion of younger and BAME adults becoming vulnerable since March.<\/p>\n
“It is likely the picture will have got worse since we conducted the survey.”<\/p>\n
The findings come a day before annual GDP figures for 2020 were expected to show an economic collapse on a scale not seen for decades.<\/p>\n
Business activity across the UK has been crushed by the impact of the pandemic with sectors such as retail, hospitality and aviation particularly affected.<\/p>\n