People have been getting poorer every month for the last two years as high inflation, tax rises and the dire state of the economy take their toll on family budgets.
Online PR News – 05-August-2012 – Birmingham, Birmingham – TUC General Secretary Brendan Barber has added his voice to the call for workers to receive "decent pay rises" to help them get through the Chancellor’s austerity package.
Debt Local has seen first hand the crippling effect of debt on families who have tried to struggle on through the recession, but who are now in need of debt help.
For more information please visit at http://www.debtlocal.co.uk
Recent interest rate rises on mortgages and redundancies in once-secure jobs like banking and the high street retail sector have meant more professional and low- to middle-income staff finding themselves facing existing debts without a salary to meet monthly payments.
The current austerity measures appear to be affecting the most vulnerable families in the UK:
• The TUC has estimated that Consumer Price Index (CPI) inflation is taking the greatest toll on the poorest households in the UK, which are paying comparatively more for food and utilities
• In February, the poorest 10% of households spent 17% of their income on food and non-alcoholic drinks
• The wealthiest 10% of households spent just 10% of their income on food, reducing exposure to price increases in food and family drinks.
• The price of food and non alcoholic drinks was estimated to have risen by 3.7% in February.
In February, headline inflation stood at 3.6% - and according to the TUC's living standards index, CPI inflation figures were:
• 4.1% for the poorest 10% of households in the UK
• 3.6% for middle income households in the UK
• 3.3% for the wealthiest 10% of households in the UK.
Wage growth was estimated to have fallen by 1.1% in February – with the incomes of the poorest families falling by 3% in real terms.
TUC General Secretary Brendan Barber said:
"Over the last year, the poorest households have suffered more than anyone else from rising food prices and soaring gas and electricity bills."
"The Chancellor's obsession with raising VAT, along with swingeing cuts to tax credits, has made life even tougher for those on low to medium incomes."
"Consumer spending plays a crucial role in driving our economy, so it's in all our interests for people to start getting decent pay rises - but the Government policy of confidence shattering austerity is having the opposite effect."
The impact of debt on families
Many of Debt Local’s customers are families struggling to bring up their children:
• A recent survey of 515 secondary schools by the Prince's Trust and the Times Educational Supplement (TES) revealed a 16% increase in malnutrition or inadequate diet among pupils
• The Prince's Trust/TES poll also found more teachers reporting children "scavenging" off fellow pupils' plates at lunchtime because they were not getting enough food at home
• Many schoolchildren now also see school as a place where they can "get warm" as families struggle to afford heating at home
• More children are arriving at school "unwashed", the poll discovered.
About Debt Local
Debt Local is a Birmingham-based debt management company which helps a wide cross-section of consumers manage their debt problems.
Debt Local does not use aggressive marketing techniques such as cold calling or sending unsolicited emails - many of our customers hear about us through word-of-mouth recommendation.
Debt Local offers a FREE confidential initial consultation and debt advice, as well as the following services:
• Debt Management
• Individual Voluntary Arrangements
• Debt Relief Orders
• Debt Consolidation.
Debt Local advises on the best debt management solution for an individual client - and will refer customers to other agencies who can provide the right solution if we are unable to.
Debt Local is committed to helping people manage their debts - and encouraging families and individuals to seek debt advice as soon as possible.
Debt Local: CALL 0800 044 5659 or text HELP to 63333