Low earners ‘are vulnerable to debt’

Workers on a low income have been hit much worse by the recession than those earning significantly more – leaving them more susceptible to debt – research has shown.

The Resolution Foundation found that those on smaller wages are more prone to losing their jobs or having their working hours curtailed.

Sophia Parker, acting director for the organisation – speaking during the Northern Money Conference 2010 at the Contemporary Urban Centre – explained the reason.

She said: “What we are seeing in the recession is that low earners are more exposed to losing their jobs.”

These people, Ms Parker added, were finding it increasingly difficult to get back into the workplace when this happens.

Over 16 million workers – over half of the employed population – said that they do not think they will receive any pay increase this year and a third of consumers expected their financial situation to get worse, uSwitch.com reported on March 2nd.

By Joe Shervin