uk households count the cost of recession

UK households count the cost of recession's first six months
New research to mark the first six months since the UK officially entered recession on 23 January has revealed that over 1 in 3 UK households (35%) have had their income reduced.The study by Kleeneze, reveals that those households affected have seen their income reduced by an average of 19.71%, the equivalent of £6,460 per year for the typical UK family*.The hardest hit areas have been the South West and Midlands with 48% and 43% of households affected by a drop in income.The most common reasons for reduced income within households of working age are redundancy (10% of households reporting a drop in income), reduction in overtime allowances (8.1%) or an enforced reduction in working hours (7.8%).However, people are showing resilience and fighting back, with a significant proportion (20.5%) finding ways to bring in extra cash.The most common ways to increase income have been for people to take on a second job (7.1% of those reporting a loss of income) or sell their car or house to raise funds (4.1%).This trend has been confirmed by catalogue company Kleeneze, which has seen a significant increase in applications for people wanting to earn extra income. Jamie Stewart, managing director of Kleeneze, says: “In some areas our number of distributors has grown by over 50% in just six months. This is most often driven by people who’ve had their income reduced and are looking to add a few hours a week with us to help make up the shortfall. For some this will be the short-term fix they need to get them through a difficult time.”
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