This chapter analyzes the COVID-19 pandemic and the implementation of quarantine restrictions exacerbated existing socio-economic challenges in Ukraine. The pandemic’s consequences affected various social groups unequally, with vulnerable households suffering the most. A significant portion of the population fell below the poverty line due to income losses. This article evaluates how these income reductions influenced poverty growth, analyzing the increase in the number of impoverished individuals in 2020 and 2021 and comparing these figures to hypothetical scenarios without the pandemic. The crisis heightened poverty risks among groups already disadvantaged. Such as households with at least one unemployed member during the first wave of the crisis, when poverty risk and quality-of-life declines were more significant. Workers with lower levels of education and qualifications, whose income reductions led to poverty, were also heavily affected. Families relying on undiversified income sources and those with many dependents were more vulnerable to quality-of-life losses, particularly single-parent households. Elderly pensioners experienced the most severe impacts among specific population groups. The loss of status characteristics was assessed through changes in socio-economic labor market status, loss of income sources among economically vulnerable groups, digital gap, and unequal access to digital technologies. Additionally, the pandemic altered decision-making models as more people transitioned into poverty and also highlighted gender-differentiated impacts and the redistribution of gender roles.