Abacus Daily Debt News

Benefit claims ‘on the rise’

While the unemployment rate in the UK appears to be in decline, the number of those claiming unemployment benefits climbed in January, suggesting that people are still experiencing potential debt and other financial difficulties.

Official data has shown that, at the beginning of 2010, the claimant count jumped by 23,000, following two months where it dropped and Mark Bolsom of the UK Trading Desk with Travelex noted "this … is unexpected".

However, he went on to say that the stability of the unemployment rate is the main concern, "which remained steady at 7.8 per cent", adding that the fluctuating benefit rates could be down to Britons "taking on temporary work as a stop gap because they can’t find a permanent position".

Mr Bolsom also recently commented on the Bank of England’s decision to keep rates at 0.5 per cent, as well as pausing quantitative easing.

He stated that this move indicates that the organisation does not have "overwhelming confidence in sustained economic recovery".

By Sarah Adie