Did financial interventions offset the impact of financial adversity on mental health during the COVID-19 pandemic? A longitudinal analysis of the UCL COVID-19 Social Study

ABSTRACT

BackgroundIt remains unclear whether financial support interventions (e.g., furlough, mortgage freezes, foodbanks, Universal Credit) provide protection against the negative impact of financial adversity on mental health. MethodsData were from adults who took part in the UCL COVID -19 Social Study between 1 April 2020 and 4 April 2022 who had variability over time in depression (N = 27,297) and anxiety symptoms (N = 26,452). Fixed-effects Poisson regressions examined the associations between an index of financial adversity (e.g., job or income loss) with depression and anxiety symptoms and controlled for other adversities and loneliness. Interaction terms between financial adversity and having used i) any, ii) charity based, iii) government based, iv) work based, and v) other forms of financial supports were examined. ResultsExperiencing financial adversity had a negative impact on mental health. Only charity based support (e.g., foodbanks) consistently attenuated the impact of financial adversity on mental health, whilst work based support exacerbated the impact. Government based support only attenuated the impact of facing limited financial adversity on depression symptoms. ConclusionFindings suggest that most financial interventions are insufficient for alleviating mental health difficulties resulting from financial adversity.