Why are so many of us working for free?

7th March 2011

A recent report released by the TUC has shown that 5.26 million people in the UK are currently working overtime without any extra payment. In what is a fiercely competitive job market, it is anticipated that workers are trying to protect their jobs by going the extra mile for their employers. This phenomenon also illustrates a growing fear about future prospects. Workers providing this additional time without charge, on average work an extra seven hours twelve minutes each week, which would entitle them to an extra £5500 if the hours were being paid. The numbers are highest amongst public sector workers according to the TUC; the sector of the economy currently most obviously threatened with cutbacks. This could lead to a dramatic increase in insolvency measures, such as trust deeds.

Opposition leader Ed Miliband is warning of a growing crisis in the cost of living. His fear is that even economic recovery might fail to help millions of us, as wage growth has been stagnant amidst the increasing costs we all bear. A Resolution Foundation report which shows that average salaries in 2015 could be around the same level they were twelve years previously backs up this concern.

The cost of housekeeping, clothing and utility bills have already rocketed. Petrol has followed suit and due to the current political strife in the Middle East, shows no sign of abating. Experts predict petrol costs of between 140p and 150p per litre, which will not only hammer commuters, but will also fuel further inflation due to the increased cost of delivering basic necessities to the shops we frequent.

The MPC, the body within the Bank of England which sets interest rates, is becoming increasingly convinced by the likelihood that interest-rate increases will be required. For the majority of mortgage holders this will mean increased monthly housing costs, which in some cases could amount to thousands of pounds each year.

Many Scottish residents will further fear these developments due to financial vulnerabilities which already exist. Looming large on the horizon will be the increased requirement for trust deeds, or other debt solution, amongst many Scots suffering from insolvency.

Vulnerabilities also exist amongst those who have already chosen to enter into a Scottish trust deed. Their disposable income budgets have already been eroded by cost of living increases which may soon be accompanied by increased mortgage costs. It’s hoped that the Scottish insolvency industry and major creditor organisations will discuss this threat and how it may be handled if and when it arises. Failure to do so may cause many existing trust deeds to fail which may result in bankruptcy.

As a starting point our forum provides invaluable information about trust deeds , as well as the otherdebt solution options available to you. Written in plain English and jargon free, we can help you to decide exactly what the best option is for you.

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