Low earners 'most damaged by recession'

Tuesday, March 2 2010

People who earn a low wage have been affected more by the recession than their counterparts.

This is according to acting director of the Resolution Foundation Sophia Parker, who spoke at the annual Northern Money Conference in Liverpool.

She explained that it is also harder for this group to find a job if they have been made redundant in the downturn.

Ms Parker stated: "Low earners are in a much more vulnerable position now than they were even before the recession."

Those who managed to keep their jobs may have had their hours cut, which can "make a very real difference" when money matters so much.

According to Credit Action, there was a 0.8 per cent annual increase in total UK personal debt.

Ms Parker advised that all disposable income is usually spent in one week and there are very narrow margins for low income families.

Added to this is the fact that training is less likely to be offered to low earners by employers, she continued.