Daily Local News (West Chester, PA)
‘A TALE OF 2 PATHS’
Telling the story of COVID’s effects on lower-income working families
Some lower-income families were harder hit than others by the fallout of the COVID-19 pandemic, a United Way of Pennsylvania survey shows.
The organization recently released new data revealing the scope of preand post-COVID-19 financial struggles among working individuals and families.
“We learned it is a tale of two paths,” said Tammy White, president of United Way of Berks County.
Those employed in highdemand jobs, such as home-health aids and grocery store and child care workers, tended to have steady employment, while those relying on jobs in the hospitality and retail industries were harder hit, White said.
What all have in common, said Kristen Rotz, president of United Way of PA, is they were already struggling prior to the pandemic.
More than 1.3 million households in the state were just one emergency away from financial crisis before the COVID-19 struck, she said. The figure includes working families identified as asset limited, income constrained and employed, or ALICE.
ALICE households earn above the federal poverty
level, but make less than what is needed to afford basic essentials and often earn too much to qualify for government assistance.
An updated report, released by the United Way of PA last month and based on 2018 data shows such households represent 27 percent of those in Pennsylvania. At 25 percent, the number in Berks County is just slightly less than the statewide average.
“What people in Berks County need to understand is these families are working, but they are fragile,” White said. “They are just a car breakdown away from not getting to work and losing their job. It doesn’t take much of an emergency to put them in a situation where they could not afford rent.”
A survey recently released by the United Way of PA showed 77 percent of ALICE and lower-income households had less than a month’s income in savings, White said.
When asked what their greatest concerns were, 44 percent of those surveyed said it was paying rent and other household expenses. Fifty-eight percent of respondents noted they had trouble affording food, and 43 percent said they received assistance from a food bank during the crisis.
“We also learned that 64 percent of (surveyed) families worked reduced hours or left their jobs during the pandemic because of having to care for a child or children,” White said, noting about 52 percent applied for unemployment compensation.
The survey is not broken down to the county level, White said, but the percentages in Berks are not thought to vary greatly from the statewide figures.
Rotz said as part of the new report, the United Way of PA put together a household budget that measures more than the federal poverty level.
The budget is adjustable for the number of people in the household and includes seniors living alone. For a family of four requiring childcare, the budget for financial survival requires minimum income of $69,648. For stability, that figure shoots to $105,564.
“It really focuses on essentials,” Rotz said. “There are no extras, no going out to eat. It focuses on a roof over your head, food on your table, some kind of health care and childcare.”
The costs for taxes, transportation, technology and miscellaneous expenses also are calculated in the budget.
“Let’s face it,” White said. “In this day and age, you need a smartphone at a minimum to apply for a job.”
The new data, she said, helps the United Way of Berks quantify the county’s struggling families and individuals and their greatest needs.
“It helps us direct or target funds to the most vulnerable populations,” she said, noting ALICE households fit into that category.
Through partner agencies, the local United Way helps support at-risk families by assisting with transitional housing, shelter, childcare and access to food.
“We are providing services that are important to struggling families.” White said.
To find local services call 2-1-1 or visit 211.org.