This article was written by Samuel Etienne and originally published by City News.
Covid 19: Ethnic minority pockets hit hardest
Survey finds 37% of BAME adults face drop in income due to Covid-19
Ethnic minorities face the largest comparative reduction finances due to Covid-19. Credit: Subiyanto / PEXELS
An FCA report has found that Black and ethnic minority individuals in the UK have faced the largest drop in income due to Covid-19.
The FCA Financial Lives 2020 survey looked into the financial resilience of over 7,000 people across the nation. The survey found that 12 million people across the country have low financial resilience.
During the pandemic, people have struggled to pay bills and maintain loan repayments. Black and ethnic minority adults have reported sizeable drops in their income.
31 percent of the survey respondents reported a drop in their earnings due to Covid-19. Ethnic minorities reported a 37 percent reduction in income over the same period. The survey indicates a link between ethnic minorities in the UK having their health disproportionately affected by Covid-19 and their ability to continue generating an income.
Black and ethnic minority (BAME) individuals make up 12 percent of all UK adults. Yet BAME individuals account for 20 percent of all unemployed.
BAME individuals also account for 25 percent of those in the low-paying gig economy. 75 percent of UK adults with incomes below £15,000 are ethnic minorities.
Counting the pennies. Credit: Conor Hall / unsplash
Housing and loan repayments
Housing concerns dominate the survey. 42 percent of renters and above 30 percent of those with mortgages worry about falling behind on payments.
BAME individuals are overrepresented in the number of renters and borrowers. Only 5 percent of Black and ethnic minority UK adults own their own properties outright.
In addition to creating their own measures to assist financially vulnerable individuals, the FCA has urged banks and lenders to treat customers fairly and work with them on adjustments to repayment plans.
FCA Executive Director of Strategy and Competition, Sheldon Mills said: “We want to remind consumers, especially those who are newly in financial difficulty that lenders are able to provide you with support.”