British families took bigger hit to income than European households

UK's greater inequality levels made impact worse for the less well off, study suggests

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British households were plunged into the Covid pandemic with lower savings, more debt and weaker welfare support than their French and German counterparts, according to analysis revealing how inequality increased the impact of the UK crisis.

High levels of income inequality also weakened the financial resilience of poorer households as the pandemic hit. The greater exposure of British households, revealed in an analysis by the Resolution Foundation thinktank to be published in full this week, comes despite similar levels of average income with our European neighbours.