More than a quarter of people in the UK have suffered a drop in household income since the start of the pandemic in March, according to Royal London.

Its research found that nearly two-thirds of the self-employed have seen a decrease in income over the same period.

A third of respondents believe their personal finances will worsen as a result of the pandemic, rising to more than half of the self-employed.

Some renters are being forced to use credit in order to cover their costs, as nearly a quarter of self-employed tenants have increased their borrowing since the pandemic.

Many of those polled have seen their costs increase this year, with a third reporting higher outgoings.

The research points towards an increase in people using debt to cover essentials and a growing disparity between home owners and tenants.

Royal London head of financial capability Sarah Pennells says: “Our research reveals the devastating effect of Covid-19 on people’s finances. “Those who are self-employed have been particularly hard hit, as have people on lower incomes. 

“And with many self-employed still not covered for various government support schemes, more needs to be done to make sure they don’t fall through the net.

“While recent government and regulatory announcements on new payment holidays for mortgages and consumer credit products are to be welcomed, it’s crucial that people get the help they need to understand what they’ll owe when the payment holiday ends, and are given support if they are still struggling financially.”

Turn2us director of income and external affairs Jamie Grier says: “This new research shows just how disproportionate the impact of coronavirus has been in recent months, including to those who are self-employed. 

“Far too many self-employed people slipped through the government support schemes and have had to rely on Universal Credit. 

“The income from this benefit is far from enough to meet people’s basic needs, even with the minimum income floor being suspended. 

“We welcome the news that the government is going to keep the minimum income floor suspension, however we urge them to go further and retain the £20 standard uplift to Universal Credit, in order to give people a fighting chance to keep themselves afloat during these difficult and uncertain times.”