Three years of pay freezes while prices continue to rise

As the cost of living continues to rise, pay freezes are leaving many Brits with a bleak outlook, according to new research from uSwitch.com, the independent price comparison and switching service, which reveals that less than three in ten workers are expecting a pay rise this year.  To make matters worse, 65% have suffered recent pay freezes – 15% haven’t seen a pay rise for at least three years.

But even for the lucky few expecting a pay rise, there is likely to be little to celebrate with the average pay rise expected to be 2.1% – under half the rate of inflation.

Cash strapped consumers are also facing a 5.9% hike in rail fares and together with the impact of last year’s 21% increase in energy bills, any pay rises may be swallowed up.

Total UK Personal Debt

Outstanding personal debt stood at £1.451 trillion at the end of November 2011.  Individuals owed nearly as much as the entire country produced in the four quarters between Q4 2010 and Q3 2011.

The average amount owed per UK adult (including mortgages) was £29,543 in November 2011.  This was around 122% of average earnings.

The average outstanding mortgage for the 11.2 million households that carry mortgage debt stood at £110,608 in November.

 

Source:  Credit Action – January 2012 edition

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