A recent report has confirmed that British consumers are likely to struggle due to pay freezes and the rising cost of inflation. This information was released within the Government’s latest figures earlier this month.
The latest statistics show the average earnings excluding bonuses (i.e regular pay) decreased from the December 2010 rate of 2.3 per cent to 2.2 per cent in January 2011.
However, average earnings growth including bonuses increased in the year to January 2011. For example, between December 2010 and January 2011 the earnings rate increased by 0.5%. Research by comparison website Uswitch revealed that 56% of the working population (16 million people) will have their wages frozen this year.
Meanwhile inflation was 4.0% in January, up from 3.7% in December.
The statistics for average pay coupled with inflation is likely to mean that more people with seek debt advice.