A pioneering study has unveiled the profound effects of the cost-of-living crisis on both discrimination and health outcomes within the Black community in the UK, highlighting a correlation between escalating interest rates and bank rates and the worsening of general and mental health, alongside an increase in experiences of discrimination.

Published in the “Ethnic and Racial Studies” journal during Black History Month, this research marks the first of its kind to investigate the repercussions of fluctuating interest rates and bank rates amid a cost-of-living crisis on the health of Black individuals.

Conducted by a team from Anglia Ruskin University (ARU), the study utilised participant forms distributed at social events in London commemorating Black History Month in 2021. Subsequently, an electronic questionnaire was sent to participants from October to December of the same year, with follow-up data gathering extending into 2022 and 2023. The research encompassed 722 responses, with 264 participants in 2021, 235 in 2022, and 223 in 2023.

Findings from the study during the 2022/2023 period of the cost-of-living crisis indicated a 3.75% rise in discrimination against Black individuals, a 4.45% decline in general health, and a 5.62% fall in mental health. Notably, episodes of discrimination were linked to a 26.4% decrease in general health and a 27.1% decline in mental health.

The period also saw significant economic shifts, with inflation escalating from 2.49% in 2021 to 7.9% in 2022 before slightly decreasing to 6.83% in 2023. Concurrently, the Bank of England’s base interest rate surged from 0.11% in 2021 to 1.58% in 2022 and further to 4.81% in 2023. Analysis from the study suggests that inflation was associated with a 2.9% rise in discrimination towards Black people, while the increased bank rate correlated with a 1.1% uptick in such discrimination.

Moreover, the study revealed that rising inflation was connected to a 2.3% deterioration in general health and a 2.5% worsening in mental health. In comparison, an uptick in the Bank Rate was linked to a 1.9% decline in general health and a 2.3% decrease in mental health.

Additionally, the research highlighted that minority subgroups within the Black community, including gay men and lesbian women, encountered higher levels of discrimination and poorer health outcomes when compared to other groups.

Professor Nick Drydakis, the lead author and a Professor of Economics at ARU, provided valuable insights into the dynamics at play. He noted that the study illuminates the intricate relationships between discrimination and health outcomes within the Black community amidst the economic strife of the cost-of-living crisis. This era, defined by significant uncertainty for most UK residents, disproportionately impacted minority groups.

Professor Drydakis elaborated on the socio-economic tensions exacerbated by such crises, which often heighten when dominant groups perceive their access to resources as threatened, leading to increased prejudice and discrimination. He underscored the critical need for societal efforts towards equality and enhanced well-being for all, especially those most vulnerable, reflecting on the broader implications of the study’s findings.

More information: Nick Drydakis, Discrimination and health outcomes in England’s black communities amid the cost-of-living crisis: evaluating the role of inflation and Bank Rates, Ethnic and Racial Studies. DOI: 10.1080/01419870.2024.2410900

Journal information: Ethnic and Racial Studies Provided by Anglia Ruskin University