Debt help for 1m more unemployed

The new unemployment figures may show a decrease, but around one million (943,000) people will be just the numbers out of work after the budget cuts, leaving many to seek debt help.

The Office of National Statistics (ONS) has announced a 20,000 fall in unemployment for the three months to August, leaving the total at 2.45 million. And during September, 5,300 more people started claiming benefit.

However, this number could well increase after the budget cuts are announced – along with the people seeking debt help – according to PricewaterhouseCoopers' (PwC) calculations.

They believe that on top of the close-to-450,000 public sector job losses, half a million private sector jobs in related industries like construction could go too.

PwC's John Hawksworth notes that whilst these job cuts may slow economic recovery, they shouldn't "derail it altogether".

Kevin Still, Director of Atlantic Financial Management says, "A recent survey by Atlantic Financial Management of 4,600 debt management clients showed that loss of income was the number one reason for seeking debt help.

As job cuts in the public sector cause pay cuts and a reduction in working hours we could see the number of people looking at debt solutions increase further."

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