Debt advice solution for wage reform

The CBI has called for an immediate freeze in public sector pay for two years, which is likely to lead to many to seek debt solutions.

The organisation believes that this, along with measures to encourage new businesses and jobs, will help remedy the nation’s financial problems. They believe that freezing pay alone will save £18bn over the two years.

Whilst the CBI aren't advocating across the board pay freezes, which would encompass frontline staff, like nurses and the police, cuts would have to be made somewhere.

This could include adding to the unemployment figures or driving more people to seek debt advice due to inflation making their wages worth less in real terms.

John Cridland from the CBI advocates changing the way that the public services are run, so as to "increase innovation, while keeping a lid on costs".

Kevin Still, director of Atlantic Financial Management, says: "Further pay freezes along with climbing inflation aren't a good mix for household finances.

Government measures to reduce borrowing will undoubtedly hit many people with debt problems and many are probably on the brink of needing debt advice or a debt solution now."

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