A new study indicates that those living in rural areas will be more likely to face financial hardship after lockdown ends.
The study, which looks into the impacts of the Covid-19 pandemic and lockdowns on people in Northumberland, East Perthshire and Harris, was carried out by Newcastle University, Scotland’s Rural College (SRUC) and the Impact Hub Inverness.
The findings indicate that as government support schemes end, and other sources of support become more constrained, rural residents will be at greater risk of poverty and vulnerability – unless appropriate action is taken.
“Voluntary and community organisations have been crucial in ensuring that hard-to-reach groups have access to financial and other support. However, many of these organisations face a challenging future with respect to their financial resources.” - Professor Mark Shucksmith
The economic impact on rural areas
There have been fewer Covid-19 cases in rural areas because of lower population densities and less mixing on public transport, but the reliance on tourism and hospitality employment has led to a severe economic impact during the lockdowns.
While these impacts were mitigated by the Coronavirus Job Retention Scheme, the Self Employment Income Support Scheme and through an uplift to Universal Credit, people in rural areas warn of growing unemployment and poverty when these are withdrawn. There are also many who did not benefit from these schemes, including seasonal, casual and freelance workers and some self-employed people.
About the report
The research findings are published in the report 'Covid-19 and financial hardship in rural areas'. This is the second report from the Rural Lives project, funded by the Standard Life Foundation, which explored why and how people in rural areas experience and negotiate poverty and social exclusion.
It highlights how difficulties relating to distance, mobility and access, as well as issues of visibility and stigma, are more severe in small rural communities. It also recognises the support provided by a wide range of formal and informal groups across the public and voluntary sectors.
Professor Mark Shucksmith, from Newcastle University, said: “Voluntary and community organisations have been crucial in ensuring that hard-to-reach groups have access to financial and other support. However, many of these organisations face a challenging future with respect to their financial resources, particularly if council budgets are squeezed further as the National Audit Office has warned, and in respect of their ability to generate income from retail sales or fundraising.”
Dr Jayne Glass, from the Rural Policy Centre at SRUC, said: “The pandemic amplified the impacts of digital exclusion in rural areas, impacting on many people’s experiences during the lockdowns, from children’s ability to engage in home-based online learning, to people’s access to advice and support services in relation to welfare applications.”
Polly Chapman, of Impact Hub Inverness, added: “As the economic impacts of the pandemic unfold, service providers and the voluntary sector in rural areas continue to play a joined-up signposting role, connecting their clients with information and advice.”
Rebecca Graham, Programme Manager at Standard Life Foundation, said: “As we emerge from lockdown it is apparent that some areas have been affected more than others, leading to increased insecurities and inequalities. The challenges faced by people living in rural communities mean that many will be at risk of falling on hard times. Policy must be put in place to deliver support and solutions tailored to the unique situation of people living in rural areas if we are to protect people from financial hardship.”
Find out more
To find out more about the research findings, take a look at the full report or get in touch: