When COVID-19 emerged last year, some predicted the virus would be a ‘great leveller’ – a rare event that reduces the gap between rich and poor and creates a more equal world. But things haven’t quite turned out this way.
The pandemic has undoubtedly inflicted enormous hardship. In the UK, 11 million people have been furloughed, losing 20% of their income or more in many cases. The number of people relying on Universal Credit has doubled, rising from three million in March 2020 to six million today. In January 2021, nearly a million businesses reported facing a serious risk of bankruptcy over the next three months, while thousands of artists, freelancers and have seen their livelihoods disappear. More than 70,000 households have been made homeless since the pandemic began.
Elsewhere however, things look rather different. Households that have managed to maintain their incomes throughout the pandemic – typically wealthier households and retirees – have built up around £180bn of cash savings. The UK’s billionaires have seen their wealth soar by 35% – equalling a staggering £40bn. Tech companies, estate agents, delivery companies, supermarkets and government subcontractors have posted bumper profits.
