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The ONS has looked at how households were set-up to cope with a loss of income when lockdown hit.

Using data from its wealth and assets survey, it found households where the head works in accommodation and food services were the least equipped to manage with a loss of income.

Workers in those industries – where 67% of the workforce was furloughed, and some businesses are still not open again – had the least savings to tide them over. Just over a quarter of households (28%) had insufficient assets to cover a 20% drop in income for a single month.

This rose to 39% if the drop was sustained for two months and 41% for a three-month period.In contrast households where the head worked in IT were best placed to face a fall in income – and less likely to have been furloughed.

Single parents were least likely to have savings to last them through three months, with just half able to cover a 20% fall in income over that period.

Office for National Statistics (ONS) (@ONS)

Households where the head is employed in industries with lower rates of furloughing, such as IT and professional services, were more likely to be able to cover a drop in employment income with savings

July 13, 2020

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