The impact of Covid-19 and associated lockdown on financial difficulties, debt and illegal money lending

Ulster University (UU) was commissioned by the Consumer Council in late 2020 to conduct followup
research to a larger study published by the Consumer Council in 2020 on illegal money lending.1
The purpose of this follow-up study was to provide an update on what had been previously found,
by assessing the impact of Covid-19 and the lockdown on the issues impacting upon individuals and
households. In total, 33 organisations - predominantly from the community/voluntary sector - participated in
this research. These included community development groups, youth workers, addiction/gambling
support services, and organisations supporting ex-combatants and ex-prisoners. While interviewees stressed that Covid-19 and the lockdown had brought a new series of challenges and exacerbated existing issues (in terms of levels of poverty and poor mental health), there was a general view that reliance on lenders outside of mainstream providers was ‘nothing new’ - particularly for those living in low-income households in areas of socio-economic deprivation.