The Financial Conduct Authority (FCA) has released a report stating that in excess of five million people have fallen into, what they have described as a “fragile” financial position as a result of the coronavirus crisis. The FCA have also reported that young working adults are among the hardest hit. In addition to this, they have concluded that BAME people have also more seriously affected than others. As a result of this, they have concluded in their report that “the pain is not being shared equally”.
The FCA Have used their ‘Financial Lives survey’ as a means of surveying the state of the nation’s finances. They interviewed 16,000 people in February 2020 as well as another 22,000 later in the year. This, they say has given them a snapshot of the first six months of restrictions caused by the coronavirus crisis. Their findings are that a quarter of the UK adult population are now in the low financial resilience category. This means that they have debts that are hard to manage, low savings, and are vulnerable to a financial shock. The number of people who fell into this category rose by 5.1 million between February and October last year.
Nisha Arora who is the director of consumer and retail Policy at the FCA has said: “While there are some positives in the data, many of the findings are worrying. The pain is not being shared equally with a higher than average proportion of younger and BAME adults becoming vulnerable since March. It is likely the picture will have got worse since we conducted the survey”.
Current Affairs Correspondent | My name is Oliver Down I am 22, and a staunch brexiteer. I am a Bristolian lad who studied politics in Leicester. I believe in free speech and accurate journalism and I won’t be afraid to give you “the other side” of the story!
This content was sourced from Unity News Network.