Many will struggle with finances for years
May 30, 2011
There are already many people across the UK who are struggling with their finances and are finding it very difficult to cope with the increasing outgoings and their problem debts. However, according to a recent report the situation could continue to get worse for many working people in the middle and lower classes as a result of the amount that they earn compared to the amount that they are having to pay out.
A leading think tank, Resolution Foundation, has recently claimed that it could be another few years before workers in the middle and lower classes see any form of increase in their salaries. However, whilst workers are left languishing on frozen salaries the cost of living continues to soar, which means that more and more workers are going to find themselves in a situation where they cannot stretch their finance far enough to cope with their essential living costs and debt repayments.
The cost of food, energy usage, petrol, car insurance, and other living costs has been soaring over recent months, and many expect these increases to continue. However, if workers are left without a sniff of a pay increase until at least 2015, which is what the report claims, it is going to become increasingly difficult for them to manage. In addition to this, if the base interest rate increases many homeowners could see their repayments rocket, making a bad situation even worse.
James Plunkett, who authored the report, said: “We all know that the recession has hit living standards hard. But something deeper has changed in our economy — even during the so-called boom years, ordinary workers weren’t seeing their living standards rise. The big question now is what will happen when growth resumes — will ordinary workers reap any of the benefits? This report suggests that is far from certain.”
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