The effects of coronavirus on household finances and financial distress

Publication type

Research Paper

Authors

Pascale Bourquin, Isaac Delestre, Robert Joyce, Imran Rasul and Tom Waters

Publication date

Series Number

BN298

Summary

The effect of the COVID-19 crisis on the economy has been huge. National income fell by 20% in April, to a level last seen in the early 2000s. But the impact of this vast aggregate shock on the finances of different households will vary widely.
In this report, we use a novel source of real-time data on households’ finances from Money Dashboard, a budgeting app, to explore the impacts of the crisis so far on earnings, incomes and financial distress, and how they are evolving. We complement this with household survey data to explain and verify the key trends.

Subjects

Information And Communication Technologies, Households, Economics, Public Policy, Wages And Earnings, Household Economics, Health, Finance and Covid 19

Links

Notes

Referenced by: Great Britain. HM Treasury (2020) ‘Impact of COVID 19 on working household incomes distributional analysis as of May 2020’. London: HM Treasury.