A third of Scots worry about finances during crisis

Over a third of people are concerned about their incomes during Covid-19, a new poll has revealed - however the figure is lower than a month ago, when lockdown had just begun.

People are concerned about bills and mortgage payments as a result of changing finances during the crisis.

Thirty six per cent of people are concerned about their income amidst the Covid-19 outbreak according to a ScotPulse survey for Citizens Advice Scotland carried out in May. The equivalent figure for April was forty one per cent.

The charity warned that while there has been a slight fall in concern around personal finances, there are still significant groups of people in the country worried about their finances.

CAS said the figures showed that the support schemes implemented by the UK and Scottish Governments, such as the furlough scheme, increased Universal Credit and Council Tax Reduction have had an impact in addressing financial concerns for some, but it was important policy makers do not lose sight of the significant numbers of people still facing financial insecurity.

CAS chief executive Derek Mitchell said: “On a surface level this polling suggests that measures implemented by the UK and Scottish Governments have had some success in addressing the financial concerns of some people during the pandemic.

“This small decline must still be understood in the context of significant amounts of people facing financial insecurity. Over a third of people being concerned about their income should set alarm bells ringing, especially as we look ahead to lockdown being eased and certain support measures being tapered off.”

He added: “The issue of people facing financial insecurity has been a serious problem that our network has seen across the country for some time now. Coronavirus didn’t introduce this issue but it certainly exacerbated it, and there is a real risk it is aggravated further in the months ahead.

“It’s absolutely essential that policy makers put maximising incomes and minimising the cost of living at the heart of any economic response to coronavirus.”

Around a quarter of those surveyed in May said they were worried about rent, utility bills and debt repayment - down from closer to a third in April.

Meanwhile, one in five said they were concerned about being able to make mortgage payment, down from 27 per cent a month earlier.

However, Mark Diffley, founder and director of Mark Diffley Consultancy and Research, which undertook the polling, warned that financial concerns were not spread evenly across the population, with those in financially disadvantaged situations most likely to be financially affected by the pandemic.

He said: “The third wave in our time series of polls conducted since the pandemic started in Scotland allows us to take a longer term view of the financial impact it is having across Scotland.

It is certainly positive levels of concern around all the financial issues covered in the surveys have declined since lockdown began. However, as we have observed throughout, the financial concern is not spread evenly across the population and continues to fall disproportionately on those in the most financially disadvantaged situation.

“For example, 31 per cent of those in the C2,D and E social grades are concerned about paying for utility bills compared to 21 per cent in the A, B and C1 social grades; similarly with paying for food and essentials there is a significant gap with 30 per cent of those in C2, D and E expressing concern compared to 19 per cent of those in A, B and C1.”

He added: “It is also noticeable that there has been some uptick in the proportion of people applying for financial help, for example with Universal Credit, Council Tax Reductions and mortgage holidays and this may be contributing to the decline in levels of financial concern. Future polling will continue to measure how the country copes with the ongoing pandemic.”

A message from the Editor:Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.scotsman.com/subscriptions now to sign up.Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website.Joy YatesEditorial Director