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Citizens advice calls for action to beat falling wages

Cherry Reynard
Written By:
Cherry Reynard
Posted:
Updated:
05/12/2014

News that the unemployment rate fell to 6.2 per cent over the three months to the end of July has been widely welcomed, but Citizens Advice has warned that working 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 is calling 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.”