Debt warning as sixteen million Brits face pay freeze

A new study by uSwitch has found that sixteen million Britons are facing a pay freeze this year amid widespread fears over job security and low levels of savings to fall back on, The Telegraph reports.

Just 10% of workers have received a pay rise so far this year, with 75% of these given a rise that is less than inflation. Taking inflation (which now stands at 4%) into account, this means they`re effectively receiving a pay cut.

As the Telegraph reports, the level of confidence in UK households is now at its lowest level on record.

A spokesperson at debt management company Gregory Pennington warned that with many workers effectively receiving a pay cut, we could see an increase in the number of people struggling to stay on top of their finances and repay their debts.

A director at uSwitch, Ann Robinson, added: "With the cost of living outstripping pay, all consumers need to start paying serious attention to their spending habits. Consumers should follow the Government`s lead and try to reduce their own budget deficit."



Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.