Thursday 17th of February 2011
People in Britain who are already deep in the red and struggling to keep on top of their debts may find wage cuts are exacerbating their financial position.
For these UK adults, asking individual voluntary arrangement questions could be one way for them to seek to improve their lot.
Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, said consumers are feeling the pinch at the moment as a result of earnings lagging some way behind inflation.
The industry figure noted this has been the case for around the last three years.
He observed: "We've become accustomed to real wage rises of one to two per cent a year, so these real wage cuts are really eating into consumers' spending power."
His comments come after the Office for National Statistics recently found average earnings - including bonuses - fell from 2.1 per cent in November 2010 to 1.8 per cent in December the same year.
By Hayley Jones
