Economic shock hits BAME people hardest

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick roundup of the money news and how it affects you.

Note from the team: our edit will always include a balance of news to keep you in the loop with money, finance, and business. But this week, we’ll be paying particular attention to stories concerning black people and their finances, here and across the world. #BlackLivesMatter.

Corona effects worst for BAME people

Two separate studies came out over the weekend finding that black and minority ethnic people have been hardest hit financially by coronavirus. One found that BAME women are the least supported by the government and are the most worried about going into debt as a result.

The other study looked at household incomes and saw BAME household earnings have fallen from £441 a week to £404, on average. Non-BAME groups saw a fall from £547 to £503. The study also found that, compared to their white counterparts, black and minority ethnic workers are more likely to have lost their jobs rather than being furloughed.

Minneapolis police dismantled

In the US city where George Floyd was killed by a police officer, councillors have voted to dismantle the local police department and replace it with a “new model of public safety”. Campaigners have long been calling for the police to be defunded. This vote will kick off further discussions of how police funding should be spent.

Lockdown easing faster

Following a stark warning about high unemployment, Boris Johnson is making moves to ease lockdown more quickly. The aim is to get the UK back to something like normality by July, so that businesses can benefit from summer trading. He was told last week that 3.5 million hospitality workers were at risk of losing their jobs. The new plans make it likely that pubs and restaurants will be able to open their outdoor spaces from 4th July.

Adviser comment: Assuming that this can be achieved safely, this would be a welcome boost for businesses and help more people get back to work.

Shoppers raring to go

Industry data shows there’s huge pent-up demand for shopping in physical shops. People have been flocking to the shops that have been allowed to open. On 1st June, thousands of people queued around IKEA car parks. It's a good sign for struggling high street businesses.

Adviser comment: If you are one of those hoping to get back down the high street, please remember not to spend more than you earn and ideally put your savings aside first.