The financial impact of COVID-19 remains both broad and relatively unchanged, with 55% of households reporting some negative financial impact in the latest wave of the survey. On the plus side, there are signs that consumers feel the worst of COVID-19’s impact is behind us: 27% of households do not expect any future financial impacts of COVID-19, up from 14% in the first round of the survey back in March.
That said, there are more subtle long-term costs involved too. Twenty-three percent of those who have been financially impacted by the COVID-19 crisis have cut back on their saving for retirement and 11% have reduced their retirement saving. As such, even when their incomes return to pre-crisis levels, there will be a financial hole to fill.
Only 6% of financially impacted households have not adjusted their budgets, but even among those who have not been impacted directly there has been a lot of change – 33% have made no changes, but 43% have cut back on discretionary spending.
COVID-19 related fraud remains a threat, as 30% of British households reported being aware of some attempt to defraud them; about 25% of would-be victims do fall foul of the attempt.