Over 47% of African immigrants in the United Kingdom (UK) feel worse off than they did a year ago, according to a new report about the impact the cost of living crisis is having on the group.
Job security is the top financial concern for the African diaspora community in the UK, followed by paying monthly bills and clearing debt, the research has found.
A significant majority (77.3%) of study participants say they support family and friends back home in Africa, but nearly 30% struggle to afford their monthly gas bill. Additionally, more than half (57.1%) of participants expect to be unable to afford a holiday this year.
Developed by BHM UK, a UK-based African communications services company, the report sheds light on the issues affecting Africans in the UK, particularly the rising living crisis.
It also highlights the spending behaviour of African expatriates in the country: nearly 70% have never been late with their rent or mortgage payments, while 8.4% miss payments regularly. Meanwhile, 44.5% of Africans borrow to pay for daily expenses, and nearly 60% have had to ask family members for support in recent times.
Ade (last name withheld), a father of two who lived in London for more than 10 years has had to move his family out of the capital as a result of the cost of living crisis.
“I had to find a cheaper place to live that will still afford my kids a good schooling experience and a good enough home considering our reality. It hasn’t been easy but we are trying to save as much money as we can so we can take care of the kids and invest in their future,” Ade explains.
With over 1,000 African immigrants surveyed, Robert Ekat, Lead Researcher, at BHM says “The findings reveal the stark reality of the financial struggles faced by this community, with job security and monthly bills being the top concerns”.
BHM Founder, Ayeni Adekunle, says, “This report is critical as it highlights the impact of the cost of living crisis on Africans. It is a deliberately qualitative report with factual data to help us comprehend the practical impact of rising costs on individuals and communities.
“It ultimately adds to the existing body of research on the impact of the cost of living crisis on different communities in the UK and we are enthusiastic that researchers, policymakers, and organisations will find the data useful in developing future policies and actions for the betterment of the African community.”
Surprisingly, the study shows that a significant proportion of respondents (84%) do not claim any form of support from the government, despite their financial struggles with 25.2% opting out of their workplace pension, since the start of the pandemic.
This is a clear contrast compared to other groups like citizens of the EU, European Economic Area (EEA), Switzerland and the UK who have access to benefits like Universal Credit, Jobseeker’s Allowance (JSA), and Employment and Support Allowance (ESA).
The report also highlights the impact of the cost of living crisis on the health of Africans in the UK. Almost 59% of respondents say the current economic situation is affecting their mental and physical health. Indeed, the findings reveal that 47% have had to miss meals so they could pay bills.
Enitan Kehinde, General Manager, BHM UK, says “We are delighted to inform public discourse and help raise awareness about the economic and psychological issues facing the African diasporan community in the UK. This is necessary for us to demonstrate increased understanding, empathy and support for these individuals and communities and to inspire practicable solutions.”
BHM’s Cost of Living report comes on the back of the Bank of England’s prediction that inflation will rise to 13% by the end of the year, thereby having the potential to plunge the UK economy into recession until the summer of 2023.
Overall, the report shows that the cost of living crisis is taking a significant toll on Africans in the UK, affecting their financial situation, health, and overall well-being. The study calls for urgent action to address the challenges facing this group and provide them with the support they need to overcome these difficulties.
It’s important for the UK to provide some support to Africans. “Apart from school fees paid by immigrants to British schools, the UK gains from Visa Fees, NHS payments, Rent, Economic productivity, Income taxes, etc.,” a report by SBM Intelligence, an Africa-focused geopolitical research and strategic communications firm states.
“This report is a wake-up call to policymakers and organisations to address the impact of the cost of living crisis on African expatriates in the UK. It is crucial that we take action to support this group and develop policies that can alleviate their financial burdens and improve their overall well-being,” Ayeni Adekunle, Founder of BHM UK adds.