Levelling up covid benefits

The disparity between the effect of Covid on different households has been vast. Many households lost their entire income with no Covid- related government support at all, for example those households whose earners worked in a business structure which did not qualify for suppport. Others were lucky and retained their income whilst avoiding many of the usual costs of living. They have accumulated vast sums in additional savings, estimated to be £100bn. The Bank of England says that it is mainly higher income households (i.e. those who could have afforded to be worse hit) who have accumulated these savings (analysis presented to the MPC in November 2020).

This gross disparity of outcome, favouring the well-off (who also have statistically better health outcomes from Covid) must be addressed. We also need to help free up this money to be returned to the economy to benefit everyone, and to help balance the enormous government debt accumulated trying to support those in need.




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