How lockdown is affecting Liverpool's most and least deprived areas differently

Families in Liverpool's most deprived areas could be forced into debt after relying on credit during lockdown.

New analysis of the debit and credit card spending of Liverpool households during the coronavirus pandemic shows the widening gap between those in the most and least deprived parts of the city in terms of the ability to control spending during these uncertain times.

The data has been put together by Beauclair, a consultancy that specialises in social and environmental finance.

They found that in every ward in Liverpool, households are now paying more for essentials than before the lockdown was introduced.

But the level of spending differs greatly between the least and most deprived wards.

In Woolton and Allerton, househoulds are paying 16 to 19% more each week, whereas in Tuebrook, Old Swan and Norris Green, essentials are costing 46 to 51% more each week for families.

In Anfield and Kirkdale households have been able to save less than 10% on their weekly shopping bill during lockdown while households in Woolton and Mossley Hill have been able to save nearly 40%.

Put simply, households in affluent areas have been able to adapt their spending to lockdown, while households in deprived areas are struggling.

The analysis states: "The greater the deprivation of an area, the higher the relative level of household spending.

"Over lockdown, households in the most deprived areas have cut their spending by 13%, compared to 28% for those in the most affluent areas.

"If households in the most deprived areas had been able to cut their spending by as much as households in the most affluent areas, they would have been able to save themselves the cost of a full week’s household spending over the course of lockdown."

It continues: "For the last two weeks up to May 5, spending by the households in the 40% most deprived areas of Liverpool reached pre-lockdown levels, compared with a 22% reduction for the most affluent households.

"Since it is likely that income has not returned to pre-lockdown levels, this raises concerns about increasing reliance on expensive credit which threatens the well-being of those households in the coming months and years."

Worryingly, Beauclair found that the gap between the spending is continuing to grow as the lockdown continues.