Low earners bear brunt of recession

People in their 20s and 30s on lower incomes have suffered the most with financial problems in the current recession – even more than families on benefits – according to a new study.

Households earning between £13,500 and £25,800 were the most likely to have experienced loss of income in recent years, the Resolution Foundation claimed.

And it is this group that is battling hardest with personal debt. The Foundation learned that 38 per cent of low earners struggle to keep on top of bills and credit card and mortgage repayments.

Over half have savings worth less than one month's salary, while 53 per cent have unsecured debt with an average value of £5,200.

1.7 million people on low incomes were already coping with financial problems before the recession made matters worse, the report found.

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