Coronavirus: Families ‘teetering on the brink’ a month into lockdown

More than 8.5 million children are living in families with less than a month’s savings to fall back on, analysis by the charity reveals today (23 April), with parents that have lost their jobs or are now unable to work because of coronavirus facing financial hardship.

With ongoing problems with claiming for universal credit and delays to vouchers for free school meals, Action for Children is warning these families are now teetering on the brink.

Before the pandemic, nearly two-thirds of all children (63 per cent) in the UK, were living in families with savings less than the average monthly income of £1,569.

The children’s charity analysed data from the Family Resources Survey, and also found that half of children are living in families with no savings at all. The median monthly income £1,569 for families with children was calculated by averaging the median household income for families with children for the years 2015-16, 2016-17 and 2017-18 from the survey.

Action for Children has launched an emergency appeal to help struggling families to pay for essentials like nappies, food and utility bills and is calling on the Government to increase child benefit by £10 a week.

The research also found a stark North-South divide in family savings, showing those in the North East were most likely to have little or no money set aside for the crisis (71 per cent), compared to those in the South East (56 per cent) who had the largest financial safety net.

One family from Torbay said,‘We’re literally living hand to mouth at the moment. We don’t have savings to fall back on and my husband’s been applying for jobs left right and centre but everyone is scrambling for the same jobs. Our main worry is if it comes to the point where money runs out. What if we can’t put food on the table or how long before we can get universal credit? What if we get ill and are stuck in lockdown? Nobody has an answer.’

Carol Iddon, deputy chief executive at Action for Children, said, ‘Millions of vulnerable families with children were struggling to put food on the table even before they were hit by the economic impact of this once-in-a-generation health crisis. A month into lockdown, they are hanging by a thread.

‘Action for Children’s frontline staff are battling to help frightened families come out the other side of this but are overwhelmed by the sheer desperation of those who are only a pay cheque away from no longer being able to keep their children and babies warm and well fed. 

‘With so many families close to breaking point and many more on the breadline, we’re supporting struggling families all over the country through our emergency appeal to help them pay for essentials, and are asking people to donate to Action for Children. But the Government must act too, and use the most effective way we have of getting help to children, by increasing child benefit by £10 a week.’

Case study

Michelle (not her real name), is a mum from Dunfermline with two girls aged eight and one, and has been a self-employed hairdresser since last November. 

‘I was bringing in a steady income and we were relying on that to pay for the food and all the things for the girls. My partner’s salary covers the mortgage and bills, but I would pay for all of the extras such as food, stuff for the girls and other things we needed - it mainly sustained the basic needs we have.

‘But then coronavirus hit and I was no longer bringing in an income. My partner was able to take on extra shifts but that meant he was working himself into the ground and I was so worried about his mental health with him working and worrying so much.

‘I was being really careful with food, making sure the kids were getting fed first and I was just eating smaller portions. I was tending to not want to eat in the end and my appetite was just fading.

‘My youngest is only one and we were just weaning her off from breast feeding but then the shops started running out of milk and with only the one wage, we couldn’t afford the powdered milk so I’ve had to go back to breast feeding more often. My body is so tired, it was preparing to stop and now I’m having to push it to let me keep feeding her.

‘I wasn't furloughed, I just can’t work because of the situation. I’m not entitled to any self-employment support as I haven’t long been a hairdresser and because of my partner’s wage.  I received a letter to say I can receive Job Seekers’ Allowance but was told before I couldn't. I’m worried about the issues people face getting government money and that I’ll then be in a worse situation having to end up paying it back.’

‘I was getting so frustrated. We’ve been working and making our own money and then suddenly, I’m not able to provide for my family.

Michelle contacted an Action for Children family support practitioner she had met through baby classes and was given a £100 food voucher from the charity’s Emergency Coronavirus Appeal fund.

‘I’ll be able to buy powdered milk, which I definitely couldn’t afford without it. It just makes me feel so relieved. I was so stressed and now I don’t need to worry. It really makes you realise that regardless of your circumstances before, anyone could need help right now. It’s ensuring that I can put food on the table for my little girls.’

• To support Action for Children’s Emergency Coronavirus Appeal, which is helping families cover the cost of essentials like food, nappies and utility bills, visit actionforchildren.org.uk, call 0300 123 2112 or text ACTION to 70175 to give £10.