Against a backdrop of threats of a second Covid outbreak, the end of the furlough scheme and with winter looming the charity reports that a worrying ‘new wave’ of families who were ‘just about managing’ are now facing financial crisis.
The charity has been running an emergency appeal since lockdown began which has supported more than 10,000 vulnerable children across the country in need of urgent essentials – 63 per cent of the fund was spent on families needing help with food, clothes, bills and learning resources.
While thousands of families struggled even before the pandemic hit, many more have found themselves in dire straits overnight because of falling incomes and rising household costs. Of those accessing the appeal, 71 per cent did not have financial problems before lockdown.
Leah and Carl, from Sherbourne in Dorset, are parents to three young children and described themselves as ‘just about managing’ before the pandemic. They soon found themselves struggling to buy basics when the Carl’s self-employed work as a painter and decorator stopped during lockdown. ‘We’ve been forced to borrow left, right and centre from family and friends as well as take out a loan to cover the council tax – we’ve never struggled like this before, ever,’ said Leah.
‘Covering life’s basic expenses since March has pushed us into the most debt we’ve ever been in – and it doesn’t look like things will get better for a long while yet.’
The family has been supported by funds from Action for Children’s coronavirus appeal which were used to pay for gas and electric on several occasions as well as to buy food and summer clothes for the children. They also received support from a local food bank for six weeks.
They are far from alone, two-thirds (66 per cent) of the charity’s key workers who supported children through its emergency appeal say families will be financially worse off over the next six months.
Even with businesses being supported by the Government’s furlough scheme, one in five (21 per cent) of families revealed at least one adult had lost their job or experienced a pay cut.
Action for Children is launching the ‘End Childhood Crisis’ campaign and is urging the Chancellor to announce in November’s Budget that he will extend the £20 a week increase in Universal Credit beyond next Spring. It is also calling for Child Benefit payments to be boosted this winter.
Carol Iddon, deputy chief executive at Action for Children, said the Government must ‘put a protective shield around struggling families’ to prevent a generation of children from being scarred by poverty and the pandemic.
‘Six months into this pandemic, families are hanging by a thread as they face one of the bleakest winters of their lives. While parents on low incomes are starting to buckle, a new wave of families who’ve never needed help before are now also struggling to make ends meet,’ she added.
‘Our key workers say child poverty levels are at the worst they can remember and have had to deliver life-changing support to thousands of families desperate to keep their kids clothed and well-fed. With furlough ending and unemployment set to rocket just as we hit the colder months, they’ll be plunged into even deeper crisis.’
