Debt charity concerned about high number of redundancies

Consumer Credit Counselling Service (CCCS) has raised concerns about the number of redundancies reported by the Office for National Statistics (ONS) and said many of those affected will now struggle to repay their debts.

The debt charity made the warning as the ONS published statistics on ‘Reasons for Leaving Last Job - 2011' today (November 9) which found that 43 percent (292,000) of those leaving their last job in 2011 did so as a result of redundancy.

CCCS said that redundancy and unemployment often lead to debt problems and are the biggest causes of debt problems among those seeking its help. Last year, 24.8 percent of the 418,000 people seeking its help blamed redundancy and unemployment as the reason for their debt problem.

The charity says that these clients are likely to be particularly financially vulnerable. CCCS clients receiving Jobseekers Allowance (JSA) are in the worst financial position of all its clients, with monthly outgoings outstripping household income by £203.

Commenting on the findings, CCCS director of external affairs Delroy Corinaldi said: "Redundancy is a huge financial blow for those affected. While many will find new jobs, large numbers will not or will have a gap before they do. This will leave them struggling with credit commitments they could easily keep up with before losing their job.

"It is important that employers work closely with charities such as CCCS to ensure that staff being made redundant are aware of the free debt advice and support that is available to help them deal with their situation and to make the best use of any redundancy payments."

CCCS has produced a free redundancy guide giving advice on redundancy pay and information about redundancy rights that can be downloaded from its website:
cccs.co.uk/InfoCentre/EnglandandWales/Lifechanges/Redundancy.aspx