Universal Credit 'small bump' shields claimants as income gap worsens - earners struggle

"Meanwhile, an awful lot of them spent less and had holidays cancelled, so they may well have paid less in taxes like VAT.

"The real pain was reserved for those who are working but on lower incomes, especially those in industries that have been more dramatically affected by the virus – so may have faced furlough or had their hours cut.

"Others will have lost work, and may well have dropped into the bottom fifth of earners.

"For anyone in this position, it’s important to bear in mind the difference that tax and benefits make to the picture. So if your circumstances have changed over the past year, it’s worth checking the tax you pay and the benefits you receive to make sure you’re in as strong a position as possible.”