The first few weeks of the COVID-19 pandemic and lockdown caused household earnings to fall across the income distribution. New benefits, top-ups to existing benefits, and the scheme for furloughed employees played a vital role in preventing poverty from spiraling upwards. Without the policies that were introduced it is estimated that poverty would have risen from 21 percent to 32 percent between March and April 2020 using the Food Poverty Line. The benefit system provided significant relief to households and in some ways performed better than during normal time.
