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Stagnant wages are the price of falling unemployment

17 Medi 2014

Citizens Advice has warned that whilst a further fall in unemployment is good news, working people people are paying the price with falling wages. New figures released today by the Office for National Statistics show that although unemployment and inflation have both dropped, working households might not feel the benefit as wages hit a two year low. The charity has called for more support for childcare costs for low income families to make sure that work always pays.

Citizens Advice Chief Executive, Gillian Guy, said:

“Stagnant wages are the price working people are paying for the welcome growth in employment. Getting more people into work is good news for individual people, their family and the wider economy, but the overall economic picture remains patchy for working households. Inflation has dipped yet wages are at a two-year low. Employment has risen yet many people remain stuck in temporary jobs. Getting a regular income is vital to people’s security, but many households are still unable to count on that stability due to the high level of part-time or even zero-hour contract jobs.

“The significant number of people working part-time or flexible hours makes it all the more vital that childcare fits with flexible working patterns. Our research shows that three-quarters of childcare providers do not offer any evening or weekend care, whilst 40 per cent have no spaces available. The Government has shown admirable commitment to helping parents cope with the cost of raising a family, but 41 per cent of parents seeking help from Citizens Advice say that lack of accessible and affordable childcare prevents them from increasing their hours of work. Giving low income families receiving Universal Credit 90 per cent of their childcare costs back and a Free School Meal for each child, would ensure that work always pays as well as helping them to make ends meet.”

-ends-

Notes to editors:

  1. 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.
  2. 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.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.