The Coronavirus And Household Incomes: Liquidity Constrained Households In Scotland

18th March 2020

Fraser of Allander Institute

Frantisek Brocek.

The coronavirus outbreak - and the public health response - will have a range of impacts upon the economy, and on individuals whose livelihoods will be impacted.

One issue, particular when asking those self-employed to forgo income by self-isolating or asking others to scale back their day-to-day activities, will be how it impacts upon family budgets.

A concern that policymakers will be mindful of, and will no doubt be looking to develop a response to, will be how to support households who may be most vulnerable to any fall-off in income.

At times like these it is crucial that households have enough liquid savings to draw upon if they need to forgo regular income for some time.

We have used the Wealth and Assets Survey to see how many Scottish households have per adult liquid assets to allow them to cover 1 month, 3 months, or 6 months of their regular income.

Read the full article HERE