Documents to download

In its latest statistical outlook, the Department for Work and Pensions reports that the overall rate of absolute low income in the United Kingdom—which is measured on the basis of income after housing costs—was 20 percent in 2018/19. It was estimated this amounted to 12.9 million individuals.

Organisations such as the Joseph Rowntree Foundation contend that the Covid-19 pandemic could cause more people to live in poverty, with unemployment increasing. Charities have also noted an increasing number of applications for universal credit and concerns over food security.

The Government has introduced measures to help businesses retain employees and to help individuals with their income. These include: 

  • The coronavirus job retention scheme, which allows employers to apply for a grant that covers 80 percent of an employee’s monthly wage (up to £2,500 a month), and the self-employment income support scheme, which allows self-employed people to claim a taxable grant worth 80 percent of trading profits (up to a maximum of £2,500 a month).
  • Changing the terms of statutory sick pay for those suffering or self-isolating from Covid-19. The new terms allow an employee to claim statutory sick pay from the first day of an absence.
  • Measures to support those affected by Covid-19 to access the welfare system, including increasing the rate of universal credit and providing access to the new style employment and support allowance.
  • Additional funding for schools, who are expected to continue providing free school meals (in the form of vouchers) to eligible pupils.
  • The creation of a hardship fund to provide council tax relief to vulnerable people and those affected by Covid-19. In addition, on 8 April 2020, the Chancellor of the Exchequer, Rishi Sunak, announced a £750 million fund for frontline charities to continue their work in supporting vulnerable people.

On 30 April 2020, Baroness Bennett of Manor Castle (Green Party) is due to ask Her Majesty’s Government “what assessment they have made of the number of people who will be (1) living in poverty, or (2) unable to meet their basic needs, as a result of Covid-19; and what steps they are taking to support such people”.

Documents to download

Related posts

  • Sovereign Grant Bill: HL Bill 54 of 2026–27

    The Sovereign Grant Bill is a government bill which would amend how the sovereign grant is set. This is a grant paid to the King to support the work of the sovereign. The bill would enable the size of the sovereign grant to be reduced following the completion of a 10-year works project on Buckingham Palace. The bill received cross-party support and was not amended in the House of Commons.

    Sovereign Grant Bill: HL Bill 54 of 2026–27

  • Financial Services and Markets Bill [HL]: Progress in the Lords

    The Financial Services and Markets Bill [HL] is a wide-ranging bill that aims to reform the way the UK financial services sector is regulated. This briefing provides a summary of the bill’s second reading and committee stage in the House of Lords ahead of its further consideration at report.

    Financial Services and Markets Bill [HL]: Progress in the Lords

  • Taxation (Energy and Vehicles) Bill: HL Bill 38 of 2026–27

    The Taxation (Energy and Vehicles) Bill is a money bill that would implement three tax measures as part of the government’s package of support to tackle increased energy prices. The bill would increase the electricity generator levy, increase the rate of tax-free mileage allowance for employees, and provide a 12-month vehicle excise duty exemption for HGVs.

    Taxation (Energy and Vehicles) Bill: HL Bill 38 of 2026–27