Estimating poverty impacts of the coronavirus pandemic
Article
As a result of the pandemic, economic forecasters are expecting a huge surge in unemployment across the UK. And, as with other recessions, some workers may find they are working reduced hours. These economic shocks will have a profound impact on people’s livelihoods in the UK as incomes drop, even with the benefit system providing some income replacement in some cases.
This analysis uses a microsimulation approach to estimate potential poverty impacts from these changes in the economy, focusing on the last quarter of 2020 when unemployment is expected to peak and the Job Retention Scheme is due to end.
IPPR's research finds it highly plausible that over 1 million more people will be under the pre-Covid poverty line compared to a situation where the pandemic had not occurred, including 200,000 children, at the end of the year.
Our analysis suggests that the government will need to go further to prevent increases in child poverty - and much further in order to stem the rise in adult poverty – as a result of the crisis.
Related items

The Europe agenda: Our values
Why we must redesign our relationship with Europe around the values we share and want to defend.
Partner to scale: How international collaboration can enable the green transition
Scaling clean industrial technologies requires a shift from fragmented national strategies to targeted, durable international cooperation.
The Europe agenda: Trade and integration
This briefing note explores the options for the UK to deepen the trading relationship and sets out a proposed path forward.