Poorer families are more likely to have plunged into debt during the coronavirus pandemic, a study warned today.
Research showed those most at risk have the weakest savings to fall back on, the Resolution Foundation said.
The crisis revealed Britain's wealth gaps and the ability of low-wealth households to weather the economic storm, the think tank added.
A typical worker in a shut-down sector of the economy had average savings of just £1,900 – far less than the £4,700 average savings of someone who has been able to work from home during the crisis, according to its 'Rainy Days' report.
Lower-income households are far more likely to run down savings and turn to high-interest credit, the study added.
Among the second poorest fifth of households, 32% are saving less than usual, compared with 17% who have increased their savings.
One in four of those households have increased their use of consumer credit – most commonly credit cards which carry high interest rates – during the crisis.
In contrast, just one-in-eight high-income households have increased their use of consumer credit, while 34% are seeing their savings increase significantly as their spending falls.
The Resolution Foundation's George Bangham said: "Pre-coronavirus Britain was marked by soaring wealth and damaging wealth gaps between households.
“These wealth divides have been exposed by the crisis.
“While higher-income households have built up their savings, many lower-income households have run theirs down and had to turn to high-interest credit.
“The impact of the coronavirus crisis will be with families for many years to come.”
Standard Life Foundation chief executive Mubin Haq said: “People who lose their jobs or have a drop in their income, and have been unable to build up their savings, are being pushed into borrowing.
“Those on the lowest incomes will have less choice and more likely to be reliant on high-cost credit.”
