One in five people believe they will be unable to recover financially this year from the impact of Covid-19, according to a new survey by Open Up 2020.
The research, carried out between July 7 and 10, was part of an initiative run by Nesta Challenges, which aims to boost awareness of financial products made possible by ‘open banking’ technology.
The survey found that 39 per cent feel ‘terrified’ at the financial impact another potential major lockdown would have, rising to 46 per cent of people who have been furloughed.
The research also found that 17 per cent of people have used up all of their emergency savings and more than 21 per cent are relying on credit to get by.
Open banking allows different providers to securely share information about a customer, helping them to access new apps and other ways to manage their money in a way that suits them.
More than a third (36%) of people said they feel more comfortable using money management apps since the lockdown started in March, the survey of 2,000 people across the UK found.
One in six people feel they are living ‘on the breadline’, a sentiment which was also higher among those on furlough, with more than 26 per cent feeling this way.
A third of those earning more than £50,000 a year said they currently feel as if they are living on the breadline, potentially due to their existing financial commitments and there being limits on the amounts of lost income that furlough payments will cover.
With many people already feeling the pinch, one in five people are concerned their finances would not be able to endure another major spike in coronavirus cases.
Some 17 per cent of people believe they will have to delay their retirement plans due to the virus, rising to more than 35 per cent of those earning more than £50,000.
More information on Open Up 2020 is available here.
