Financial insecurity: guidance to local authorities over winter 2021-2022

Evidence suggests that the following groups are at an increased risk of financial insecurity, and are more likely to experience difficulty affording food, fuel and other essentials.

• Younger people
• Disabled people
• Lone parents
• Minority ethnic households
• People living in households with children
• Larger families
• People with No Recourse to Public Funds
• People living in households on low incomes
• People living in the most deprived areas

This may be due to recent changes in financial circumstances resulting from Coronavirus, such as loss of employment, or may be due to pre-existing pressures which have been compounded by recent events. Increased cost of living due to inflation, and the removal of income supports such as the furlough scheme and the Universal Credit uplift have disproportionately added to the pressures on people in these groups.

Households that are worried about the adequacy of their budget may cut back or go without fuel, food or other essentials which can contribute to and exacerbate poor physical and mental health. Strengthening income will provide households with greater choice to meet their needs and preferences.

Considering an intersectional approach is essential. It is important to note that many of these groups overlap. For example, women, disabled people and those of many minority ethnicities are all more likely to be low earners; minority ethnic people are younger than the White population on average; and the vast majority of lone parents are women. Evidence suggests that COVID-19 is exacerbating pre-existing inequalities therefore it is vital that COVID-19 response, recovery and renewal effort takes account of overlapping disadvantage.