"While our research shows that the financial support is likely to take some time to get back to pre-pandemic levels, it also highlights how interwoven families have become"
The overall value of financial help from families is expected to fall by £1.8 billion across the country, with the average amount given per person dropping by 27%, from £775 pre-pandemic to £567.
The research found that almost two million people have received less regular or a lower amount of financial help from their families since the beginning of the first lockdown in March 2020. Around £151 million less has been paid out to family members since Covid-19 hit.
By early December 2020, the latest available data, nearly nine million people had to borrow more money than usual to counteract the financial impact of the pandemic, with nearly half (45%) of these having to borrow more than £1,000. This is a 40% increase when compared to six months prior and means 2.4 million people needed to borrow more to cover their costs.
As of April 2021, nearly one in six (17%) adults, some nine million people, stated the pandemic had affected their household finances.
Vincent Guadagnino, communications manager at Direct Line Life Insurance, commented: “The pandemic has had a profound impact on all our lives. It has separated us from loved ones and vital support systems during a really difficult period and led to many struggling without the usual financial, childcare and emotional support received from their families.
“While our research shows that the financial support is likely to take some time to get back to pre-pandemic levels, it also highlights how interwoven families have become and how reliant people are on their family support system. Covid-19 has been a challenging period for many but has also emphasised how important family is and how vital it is to protect them.”
