It has been claimed in a recent report that many workers in the low and middle classes in the UK may be destined to struggle with debt for the next few years. The report claims that many low and middle class workers will not see any sign of a pay rise until at least 2015, which means that they will be stuck on the salary that they are currently on – or may even have their salary reduced – for at least the next three years or so.
In the meantime, the cost of living continues to soar, which means that whilst these workers have to cope with the same level of pay they are having to pay more for everything from the cost of energy usage to the cost of running a car, putting food on the table, and paying their bills. In addition to this, when the base interest rate increases from its all time low of 0.5 percent, many will be tipped over the financial edge, as their mortgage repayments rocket.
The report was released by the think tank Resolution Foundation, with officials from the group stating that it would be around 2015 before people in these classes saw any improvement with their pay scales. The report said that this was down to the effects of the recession and government cutbacks and could cause serious problems for those that see their outgoings steadily increasing whilst their income remains static.
Tags: cost, something, outgoings, level, recent report, food, Resolution FoundationJames Plunkett, who authored the report, said: “We all know that the recession has hit living standards hard. But something deeper has changed in our economy — even during the so-called boom years, ordinary workers weren’t seeing their living standards rise. The big question now is what will happen when growth resumes — will ordinary workers reap any of the benefits? This report suggests that is far from certain.”