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Pay increases could help debt management

Pay increases could help debt management

- Thursday, 22 April 2010

Debt problems could be eased for many people following the news that regular pay without bonuses has risen by 1.7 per cent in the last year.

From December 2009 to February 2010, the average weekly pay was £428, according to a report from the Office for National Statistics.

An increase in wages could benefit those following a debt management plan, leaving them with more disposable income to spend.

The number of people claiming jobseekers allowance has fallen by 32,900 over the last month while there has been a rise in employees working part-time hours, perhaps suggesting companies have found an alternative to redundancies.

Yvette Cooper, work and pensions secretary, said: "Many people are still having a hard time as a result of the recession…March figures for the claimant count show a drop-the fourth drop in five months."

She added that the country was not out of the woods yet and the shadow secretary Theresa May believes a job tax is a bad idea.

However the number of people needing debt advice could increase as unemployment figures have grown to 2.5 million, a 43,000 rise over the quarter. This is the highest they have been since 1994.ADNFCR-2300-ID-19736265-ADNFCR
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