WIREDGOV

People still face increasing problems making end meet despite positive news on falling unemployment in yesterday’s Labour Market Statistics, Citizens Advice has warned.

Gillian Guy, Chief Executive of national charity Citizens Advice, said:

“Pay packets are failing to keep up with rising day to day costs.  People are going out to work but finding that it more difficult to make their stretch to cover the rising cost of essentials like food, rent and energy as the long-standing gap between wages and inflation hits workers hard.

“Falling unemployment will help some households get back on their feet.  It is important that people are able to get secure work to make sure they have a consistent income and don’t find themselves slipping in and out of employment.

“Self-employment is at an all-time high. For many people setting up on their own is step back towards employment rather than the final destination.  Self-employed people are just as likely to come to CAB for help with a debt problem as people who are unemployed, so there’s a real danger that rising self-employment could reflect a rise in people in unstable, low paid work.”

Analysis from Citizens Advice has found that earnings are still lagging behind inflation. Figures showing wage changes are calculated as a three month average, whereas CPI growth is taken from a single month. Comparing like with like, so one month with one month compounding the monthly changes, shows that inflation is still higher than wage growth, as the graph below shows.

Citizens Advice statistics on self-employment (December 2013 to February 2014):

•33% self-employed people who came to Citizens Advice for help in the last three months got advice on debt problems, the same proportion as those who are unemployed.

•29% of people in work got help with a debt problem.

•14% of self-employed people who come to Citizens Advice with a debt issue have problems with mortgage and secured loan arrears.

•More than 1 in 10 self-employed people who got help with debt issues got advice on bankruptcy compared to 7% in work and 5% unemployed.

Citizens Advice

Notes to editors:

1. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014. Contact the press office to find out more.
2. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
3. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
4. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk. You can also get advice online atwww.adviceguide.org.uk
5. You can get consumer advice from the Citizens Advice consumer service on 08454 04 05 06 or 08454 04 05 05 for Welsh language speakers
6. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends
7. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.