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Single parents hit hardest financially by pandemic

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Single-parent families have seen their finances hit hardest by the pandemic, a new report reveals.

Yorkshire Building Society found single-parent households were the only cohort to see their savings fall in 2020. A quarter (24 per cent) reported that their savings levels had decreased while an additional 17 per cent said they had no savings before the pandemic.

Of the single parents that did have money set aside, average monthly savings fell from £520 in 2018 to £400 in 2020.

In contrast, households compromised of two or more adults were most likely to see their savings pot go up throughout the pandemic, with monthly savings increasing to £1,530.

Similarly, households compromising of two adults and one or more children managed to save £1,500 on average, and single adults £1,010.

Tina Hughes, director of savings at Yorkshire Building Society, said: “Whilst many people have managed to put away extra savings throughout the pandemic, this latest research clearly shows that different pockets of society have been more impacted than others over the last 18 months.

“The fact that single parents have seen their ability to save fall over the last two years means they could be hit hard in the event of a financial shock, such as an unexpected bill.

“For some of those that have struggled during the pandemic and are now confronted by a cut to universal credit, a record breaking jump in inflation in August and rising energy and food prices, the picture this winter is bleak.”

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