The pandemic, the cost-of-living crisis and the war in Ukraine is adversely affecting the overall wellbeing of the UK population, with ethnic minorities hardest hit, according to the latest findings of the LifeSearch Health, Wealth & Happiness 2022 Index.
While 2021’s score was 84.4, a slight rise on 2020 (81.5), it remains 15% lower than 2019’s pre-pandemic score of 99.4.
LifeSearch commissioned the research with the Centre for Economics and Business Research (Cebr) and is supported by consumer insights from among 500 UK ethnic minorities and 2,000 adults in the UK.
Happiness falls but health improves
While Britons’ happiness fell to its lowest point in the last decade in 2021 and dipped again in the first quarter (Q1) of 2022, as the conflict in Ukraine and the rising cost of living took their toll, the nation’s health saw the largest improvement in the index – rising across 2021 and up by a fifth (19%) in Q1 2022 on the previous quarter.
Britons’ wealth also saw strong gains in 2021, up 11% on 2020 – it has since been on the decline in 2022, dropping 8% in Q1 on the previous quarter. The rising cost of living is having a detrimental effect on mental health too.
When polled in April 2022, three-quarters (74%) of adults said their mental health had been adversely affected in the last two years and of these, the “rising cost of living” (28%), closely followed by “Covid restrictions” (27%), were cited as top causes.
But the findings indicate this situation may worsen as 72% of all Brits expect to be worse-off financially this year as inflation soars, expecting to be £3,020 per year out of pocket (£252 per month) on average.
Health improvements
While the health index posted more positive readings over the first quarter of 2022, it is still not back to pre-pandemic levels.
The share of the UK workforce suffering with long-term health issues is on the up, standing at 34% in Q4 2021 vs 30.1% in Q4 2016 – as cases of long Covid continue to rise, with more than 1.7 million people suffering in the UK.
More than half of all Brits (51%) said the Covid pandemic had a negative impact on their access to healthcare, rising to 57% of women and 62% of those aged over 55. While the figure is a little lower (49%) among all ethnic minorities, it is higher (55%) among Pakistani and Bangladeshi Brits.
In addition, almost half (45%) of all respondents believed the Covid pandemic had a negative impact on their mental health (10% saying it had been very negative), rising to 50% of women and younger people.
The impact was even higher (52%) among people from ethnic minority groups; rising still among women in this community (58%) and among Pakistani and Bangladeshi ethnic groups (59%) – vs 46% of white Brits.
But it was not just Covid that affected Britons’ mental health with the rising cost of living, job insecurity and the Ukraine conflict all cited as concerns. (See table below.)
Happiness and wealth concerns
The happiness index hit its lowest level in the 10-years of data in 2021 and fell again in Q1 2022, likely impacted by the Ukraine conflict and rising cost of living.
LifeSearch consumer insights found that a quarter (24%) of all Britons felt less happy than last year, rising to 31% of those living alone and 28% of ethnic minorities. This was higher still (37%) among those of Indian heritage.
However, 28% of Brits felt happier than last year and 2021 was a marked improvement on a year before, where 46% of Brits said they felt less happy.
The phased reopening of the economy from April 2021 helped push a significant increase in the LifeSearch Wealth Index, up 11% in 2021 on the previous year. But rising inflation and energy prices led, by Q1 2022, to a fall of 8% in Britons’ perceptions of their wealth.
Only 8% of all Brits do not expect to be financially worse off this year. Of the 72% who think they will be worse off, they estimate this to be £252 per month or £3,020 per year on average, rising to £271 for women and £299 among those aged 35-44.
London was the region where people expect to be hit the hardest at £322 per month (£3,859 pa).
Over a quarter (28%) of all Britons said they have saved money in the last year, averaging £276 per month, rising to 33% of those from ethnic minority groups (at £329 per month on average).
Furthermore, a greater number (38%) of people from ethnic minority communities have reviewed their spending over the last year, compared to just 22% of the wider adult population.
One in 10 (10%) of all Britons have paid off some debts in the last 12 months, averaging £491 per month, rising to 15% in ethnic minority groups (averaging £496pm).
However, 11% have added new debts in the form of credit cards, loans and the like, averaging £403pm. This compares to 8% among ethnic minority groups, who average a lower sum of £281 per month.
Ethnic minorities hardest hit
The study also found that 35% of all British parents think the pandemic has had a negative impact on their children’s educational opportunities, 12% saying it was a very negative impact. The overal negative impact rose to 42% of ethnic minority families and 48% among mixed race families.
The majority (51%) of people from ethnic minority groups said the pandemic had adversely impacted their household finances rising to 58% of Pakistani and Bangladeshi adults, compared to just 38% of white Brits.
Almost two-thirds (63%) of ethnic minorities have seen their cost of living negatively impacted by the pandemic compared to 59% of all UK adults.
Around a third (29%) of people from ethnic minority groups, compared to just 15% of all Brits, think the pandemic has had an adverse effect on their position in society.
In fact, a larger proportion of ethnic minorities (26%) than white British adults (19%) felt that they were more at risk of contracting Covid than the average Brit due to their day-to-day circumstances such as their profession or where they lived, and this rose to 38% of Black Brits.
Furthermore, 35% of people from ethnic minority groups felt the pandemic meant they could not do their job safely, rising to 44% of Black Britons. This compared to just 19% of all white British adults.
Jabeer Butt OBE, CEO of the Race Equality Foundation, said: “Across education, finances and general happiness, it’s clear ethnic minorities are suffering. These major findings reflect our own knowledge that Black, Asian and minority ethnic communities continue to bear the brunt of the effects of the pandemic and cost of living crisis.
“We urgently need targeted support to take account of and effectively address these unequal impacts if we want to see a healthier, wealthier and happier Britain in the coming years.”
Debbie Kennedy, chief executive at LifeSearch, (pictured) said: “While there may be a sense that after two long years the worst of the pandemic is behind us, the nation’s health, wealth and happiness is still not close to being back to levels seen pre-Covid.
“In fact, our happiness is at a record low, mental health issues remain high and the energy crisis, inflation and conflict in Ukraine point at another chapter of uncertainty.
“At a more granular level, our study reveals the pandemic pressures and consequences faced specifically by people in ethnic minority communities, where many have been hit harder over the last two years and the ripple effect may continue much longer. Many in those communities feel they’ve had to work harder, dig deeper and risk more to stay afloat.”