Examining the relationships between psychological distress and financial hardship and uncertainty during the COVID-19 pandemic and the subsequent cost-of-living crisis in the United Kingdom

Publication type

Journal Article

Authors

Publication date

April 12, 2024

Summary:

Background: The study tests whether financial hardship and uncertainty have increased during the COVID-19 pandemic and the early stage of the subsequent cost-of-living crisis and whether these might explain increased psychological distress among the UK population.

Methods: We derive two cohorts from Understanding Society, a study representative of the UK population. Cohort 1 (C1) starts in 2016 and includes a 3-year follow-up until 2019. Cohort 2 (C2) starts in 2019 and ends in 2022. We provide descriptive statistics on financial hardship and uncertainty and apply parallel Latent Growth Modelling (LGM) on each cohort to explain variations in psychological distress (GHQ-36) based on baseline and follow-up financial trajectories. The sample is adjusted using cross-sectional weights and inverse probability weights for attrition.

Results: Financial hardship rates do not differ across cohorts but a marginal increase of 10 percent in financial uncertainty is observed in 2022 for C2. No significant difference in associations is observed across cohorts in the LGM with constant financial hardship increasing the GHQ-36 slope by 0.89 (95%CI=0.76;1.02) and 0.89 (95%CI=0.73;1.05) units in C1 and C2 and constant financial uncertainty increasing it respectively by 0.95 (95%CI=0.74;1.17) and 1.04 (95%CI=0.82;1.25). Baseline hardship and uncertainty increase the intercept by 2.39 (95%CI=2.11;2.67) and 1.74 (195%CI=1.38;2.10) in C1 and 2.97 (95%CI=2.65;3.29) and 2.12 (95%CI=1.75;2.49) in C2.

Discussion: The uncertainty caused by the 2022 cost-of-living crisis might have contributed to increase psychological distress within the UK population. Stronger detrimental effects might be expected if financial hardship were to increase.

Published in

medRxiv

DOI

https://doi.org/10.1101/2024.01.14.24301283

Subjects

Notes

Open Access

Uses Understanding Society data (not Understanding Society - COVID-19 Study, 2020)

The copyright holder for this preprint is the author/funder, who has granted medRxiv a license to display the preprint in perpetuity. It is made available under a CC-BY-NC-ND 4.0 International license.

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