During the past years many UK workers have had their salaries frozen and have not, as such, seen any increase in income. The situation has been daunting for many as living costs have continued to increase and numerous workers find financial concerns to be an all-too-present concern.
The status quo of income levels has wide implications, which reach beyond individuals struggling with mortgage payments and household bills. On a national level, financial growth will remain slow as many can’t afford much more than the bare necessities.
Two out of three UK workers have been affected by pay freezes and it is becoming more common for workers to take on a second job in order to make ends meet. For 2012 the prognosis remains gloomy as only one in three are expected to see any form of salary increase.
According to Michael Ossei, Personal Finance Expert at uSwitch.com, many are saving whatever extra they have as 2012 will be another year characterised by financial hardship. "After a difficult 2011 which saw the cost of living rocket, savings rates stuck at rock bottom and pay frozen, Brits are preparing themselves for another tough year.
“While the cost of living continues to rise, pay isn't keeping up, which means that workers are seeing their disposable income drain away. Further pay freezes in 2012 could push many consumers over the edge. In the face of another tough year, those who plan to severely rein in their spending have hit the nail on the head - this year more than ever people will have to watch their spending and cut back where they can.”
Ossei highlighted the importance of actively keeping an eye out for cost-cutting alternatives. "Consumers can give themselves a pay rise by shopping around for the best deals on their household bills - which could save you over £1,800."
The straining financial climate is taking its toll on workers and many are finding it difficult to pay their household bills and mortgage payments. It currently seems inevitable that this struggle will continue throughout 2012.
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