Debt consolidation may be needed as pay still lags
31 March 2011
Pay settlements are still lagging behind inflation, new figures have shown.
Statistics from pay analysts Incomes Data Services (IDS) have shown the median pay rise in the three months to January 2011 was 2.5 per cent.
This includes seven out of eight being over two per cent and two out of five being of three per cent or more, all of which indicates employees are getting pay cuts in real terms with Consumer Prices Inflation rising past four per cent.
Debt consolidation may be a good way for those whose budgets are squeezed to make the most of their money, as this could help reduce monthly debt repayments.
Trades Union Congress general secretary Brendan Barber said the IDS findings showed British workers are suffering the "biggest income squeeze in generations".
"Wages are edging up as firms increase profitability but most pay deals are still less than half the level of inflation," he remarked.
By Amy White