UK workers anticipate missing out on £3.1 billion in payrises

Nearly a quarter (22%) of workers believe they will be bypassed entirely for a payrise next year, according to research by uSwitch.com.

With the current average payrise equating to 3.21%, or £533 a year after tax, employees believe they will be hit hard in 2009, at a time when the Government is attempting to persuade consumers to spend their way out of the recession in a bid to help the UK economy.

However, the lack of payrises looks to be offset by a fall in annual inflation figures, meaning there may be light at the end of the tunnel for consumers after all. Annual inflation (CPI) fell from 4.5% to 4.1% in November, and it could fall further throughout 2009. At the same time oil prices and utility bills look set to drop throughout 2009, as the cost of wholesale supplies start to fall. The cost of supermarket food also looks to have reached a plateau, which potentially signals an end to spiralling food costs.

The cost of staple supplies such as bread, pasta, cereal, fruit and vegetables remained steady between the months of November and December across UK supermarkets. This welcome break from price increases could be an early indication that the cost of food could be stabilising or could even start to return to normal. This would be a reprieve for cash strapped households, following a period of 10 months where shoppers saw the cost of a loaf of bread increase from 113 pence to 126 pence and chicken increase from £2.49 to £3.04.

According to uSwitch.com, if energy prices fall by 10% early next year as expected, consumers will also save £129 a year on average, bringing their annual fuel bill down to £1,164. At the same time, oil prices should continue to fall in response to falling demand, leading to lower petrol prices - bringing an end to the extortionate forecourt prices that UK motorists witnessed last summer. Petrol prices have fallen to 89.48p a litre from a peak of 119.7p in mid-July. This means the cost of refilling an average car's tank has fallen by £15.11.

With unemployment numbers growing by 1,522 a day, job security and fears of unemployment are among the major concerns for UK consumers as they enter 2009. According to uSwitch.com research, 9.2 million people (34%) would not feel confident about finding another job in 2009 if made redundant. With the unemployment rate rising by 0.4% to 6% during the last quarter, the downturn in the economy has led to unemployment increasing by 137,000 over the last quarter - leaving those in employment feeling understandably nervous should they become redundant.

As a result, people may be staying put in jobs that they find unfulfilling or disastisfying as they are too anxious to move. Almost a quarter (22%) - potentially 1.4 million workers - are unhappy or indifferent when it came to their jobs. But 57% of these will not consider changing roles in the current economic climate - the credit crunch is keeping them where they are. At the same time when it comes to looking for a new job, 55% of people would not be willing to take a pay cut, but 79% would consider a new career direction.

Louise Bond, personal finance expert at uSwitch.com, says: "2008 was a tough year for consumers, who are now bracing themselves for an even tougher year ahead. 2009 is going to be a bit of a roller coaster ride - bumpy for those who are able to stay in their job, but catastrophic for those who can't. It is good to see that the overall cost of living has started to fall, but this will be small comfort for the growing numbers of unemployed.

"The Bank of England has outlined that it expects inflation to slow sharply in coming months thanks to a combination of falling fuel costs, as well as the economic slowdown and the cut in VAT. However, the onset of the recession can not be stopped, and the threat of unemployment is still a very real fear. As we go into 2009, households need to focus on recession proofing themselves - cut out unneccessary expenditure, shop around to reduce household bills and get back into the saving habit. If the axe does fall, having money set aside in a savings account will help cushion the blow."