Covid-19 Policy Response Dashboard

We analyse the UK policy response to Covid-19 and its impact on household incomes in the UK at different points in time, using the tax-benefit model UKMOD. Our baseline is always the income distribution in December 2019, before Covid-19. The assumptions behind the analysis, and the data used, are detailed here.

Indicator:
Date:

Note: Equivalised household net income
April 2020

Note: Equivalised household net income
April 2020

Note: Equivalised household net income
April 2020

Note: Equivalised household net income
April 2020

Note: Equivalised household net income
April 2020

Note: Equivalised household net income
April 2020

Change in total earnings, revenues and spending (£ million per month)

Baseline
(in levels)
Impact of crisis
(change to baseline)
Employee earnings68,390-6,813
Self-employed earnings9,894-4,237
Earnings subsidies from JRS010,204
Revenues from income tax + NIC21,392-3,386
Income tax13,911-2,372
Employee NIC7,008-762
Self-employed NIC473-252
Spending on benefits6,0431,342
Universal Credit (UC)2,721996
Savings from UC benefit cap2615
Jobseeker’s Allowance (JSA)14194
Working Tax Credit (WTC)9427
Housing Benefit (HB)71521
Child Benefit (CB)94325
Council Tax Reduction (CTR)39250
Other means-tested benefits1,16429
Revenues–spending15,349-14,931

Notes: Other means-tested benefits include the Child Tax Credit, Income support, income-related Employment and Support Allowance, income-based JSA, Pension Credit, Scottish benefits (Sure Start Maternity Grant and Best Start Grant). No simulations to Statutory Sickness Pay.
Source: Own calculations with UKMOD and FRS 2017/18.
April 2020

Change in number of earners, tax payers and state benefit recipients (thousands)

Baseline
(in levels)
Impact of crisis
(change to baseline)
Employed26,299-722
Self-employed4,245-206
Furloughed workers on JRS07,062
Income tax + NIC payers32,387-2,272
Income tax29,557-2,761
Employee NIC23,418-1,020
Self-employed NIC3,269-1,398
Benefit recipients13,4311,636
Universal Credit (UC)4,0261,360
Affected by UC benefit cap9037
Jobseeker’s Allowance (JSA)44623
Working Tax Credit (WTC)374-54
Housing Benefit (HB)2,0074
Child Benefit (CB)7,103171
Council Tax Reduction (CTR)5,376520
Other means-tested benefits3,40536

Notes: Other means-tested benefits include the Child Tax Credit, Income support, income-related Employment and Support Allowance, income-based JSA, Pension Credit, Scottish benefits (Sure Start Maternity Grant and Best Start Grant). No simulations to Statutory Sickness Pay.
Source: Own calculations with UKMOD and FRS 2017/18.
April 2020