A groundbreaking new study has revealed the significant impact of the cost-of-living crisis on discrimination and health outcomes among Black people in the UK, with rising interest and bank rates associated with deterioration in general and mental health and rising discrimination.
The study, published in the journal Ethnic and Racial Studies during Black History Month , is the first to examine the impact of interest and bank rates during the cost-of-living crisis on the health of Black people.
Researchers from Anglia Ruskin University (ARU) distributed participation forms during social events in London celebrating 2021 Black History Month. An e-questionnaire was sent to participants between October and December 2021. Follow-up data collection occurred in 2022 and 2023. A total of 264 people took part in the research in 2021, 235 in 2022, and 223 in 2023, resulting in 722 observations overall.
According to the study, during the 2022/2023 cost-of-living crisis, discrimination towards Black people increased by 3.75%, general health decreased by 4.45% and mental health decreased by 5.62%.
Instances of discrimination were associated with a 26.4% deterioration in general health and a 27.1% deterioration in mental health.
Inflation rose from 2.49% in 2021 to 7.9% in 2022, before falling to 6.83% in 2023. In the same time period, the Bank of England’s base interest rate rose from 0.11% in 2021 to 1.58% in 2022 and further to 4.81% in 2023. Researchers found that among the participants, inflation was associated with a 2.9% increase in discrimination towards Black people, while the rising bank rate was associated with a 1.1% increase in discrimination.
Rising inflation was linked to a 2.3% decline in general health and a 2.5% decline in mental health, while the Bank Rate is associated with a 1.9% decline in general health and a 2.3% decline in mental health.
The study also found that minority subgroups within the Black community, such as gay men and lesbian women, face higher levels of discrimination and poorer health outcomes compared to reference groups.
Lead author Nick Drydakis , Professor of Economics at Anglia Ruskin University (ARU), said: “The study provides critical insights into how discrimination is related to general and mental health outcomes within the Black community during the cost-of-living crisis.
“It was a time of great uncertainty for the majority of people living in the UK and is still having an impact today, but it is clear that it had a disproportionate impact on minority groups.
“In times of social and economic upheaval, tensions between different communities often intensify, particularly when dominant groups believe their access to resources to be under threat. This can in turn lead to a rise in prejudice and discrimination.
“The study underlines the need to work towards creating a more equal society and improving the well-being of everybody, particularly those who are most vulnerable.”
Ethnic and Racial Studies
Survey
People
Discrimination and health outcomes in England's black communities amid the cost-of-living crisis: evaluating the role of inflation and Bank Rates