Bleak picture as people will struggle with finances as autumn approaches, warns Sheffield Council

Demands on food banks increased four-fold during the initial crisis and rent arrears have gone up. Twice as many Sheffield residents are claiming Universal Credit than at the start of the pandemic.

Council officer Cat Arnold says in a report: “Although many people have been able to take a breath after the initial crisis, we expect people’s financial situation to get increasingly worse over the autumn and beyond as creditors are able to start recovery action again, the job retention scheme is phased out and the economic recession hits.

“The demand for advice is now increasing rapidly and is expected to rise by 30 per cent over the next few weeks and months.

“After ten years of austerity and welfare cuts, many people were already struggling before the pandemic leaving them with few resources to cushion the crisis.”

The report says people were unable to access services during lockdown which exacerbated poverty.

“Certain groups have been disproportionately affected by the financial insecurity caused or exacerbated by the crisis.

“Poorer people and those in deprived communities have been hit hard, and we’ve seen many people newly entering the benefits system.

“Many people have not been able to afford to get online at a time when digital access is more crucial than ever.

“Some people with complex, chaotic lives have suffered because even the best remote service is not the same as face-to-face support.

“People who rely on cash who have struggled to buy essentials in places where only cards are accepted

“Some claimants such as rough sleepers do not have access to a bank account and therefore need benefit payments in cash.

“During the first lockdown this became particularly difficult due to many PayPoint outlets being closed. Job centres have remained open – although mostly by appointment and on reduced hours for vulnerable claimants throughout the pandemic.”