One in every ten UK employees want to work more hours than they are currently being offered.

Research by the Office for National Statistics has discovered the problem of underemployment is one that is growing. Between 2008 and 2012, there was an increase of one million in the number of workers who required additional shifts.

Around one-quarter of part-time staff members complained they could not get enough hours, while the top three areas for underemployment were the East Midlands, Yorkshire and the Humber and the north-east.

Among the positions where underemployment is the biggest issue are school crossing assistants and bar staff.

Andrew Sissons, a researcher for the Work Foundation, noted it is very concerning to see how the problem of underemployment is increasing, adding: "Not only are underemployed workers struggling to make ends meet, they are also increasing the competition for jobs, making it even harder to reduce unemployment."

He stated the youngest and lowest-paid members of the workforce are the ones having to bear the brunt of the problem, with those aged between 16 and 24 twice as likely to be underemployed than the average.

This could mean that people will struggle to stay debt free, as they are not taking home enough pay to meet their current financial outlay. If people find themselves in the situation whereby their outgoings and greater than their income, then action needs to be taken to avoid long-lasting problems.

A debt management plan may be useful, as it allows consumers to pay off any debts they have at a more affordable rate by making reduced monthly payments, while people will still be left with a budget to meet their household bills.

Trades Union Congress general secretary Brendan Barber is deeply worried by the situation, as being underemployed leaves people facing "a huge pay penalty" that leaves personal finances strained.

"Long periods of under-employment can cause longer-term career damage, which is particularly worrying for the one in five young people currently trapped in it," he added.

By James Francis 

Some families are considering cancelling Christmas because of the expense associated with the festive period.

Research conducted by Family Action has discovered mums and dads do not know how they will finance the purchasing of presents.

Part of the problem is they feel under pressure to meet the expectations of their children, despite the fact that the typical low-income family would have to save their whole disposable income for 15 weeks to afford an average family Christmas.

This statistic highlights how so many people end up needing a debt management plan after the festive period, as they are overstretching themselves financially.

Family Action chief executive Helen Dent noted it is "intolerable" that the poorest children will not get any gifts on December 25th.

However, she added it is possible for adults in the UK to provide a "positive festive experience" for their kids – such as by socialising with the extended family – without leaving themselves in a perilous financial situation.

By James Francis

Self-employed individuals are the most likely to be dependent on credit.

This is according to research carried out by the Personal Finance Research Centre at the University of Bristol. In terms of the three main types of credit – credit card, overdraft and personal loan – the number of people seeking debt advice was far higher for the self-employed sector.

As a result, they are more vulnerable to getting caught up in a debt cycle, which could threaten their jobs and standard of living. This is why individuals should always make sure they seek out debt help as soon as they think their problems have become unmanageable.

In 2012, the average credit card balance for all StepChange Debt Charity clients was £10,517, which is significantly lower than the figure of £17,237 for self-employed individuals.

This pattern is repeated across other forms of credit too, as when it comes to overdrafts, the typical value was £2,082 – and £3,615 for self-employed workers – while the average personal loan was £10,479, compared to £13,266 for self-employed clients.

Delroy Corinaldi, external affairs director of the charity – formerly known as the Consumer Credit Counselling Service – said: "While anyone, whatever their job or income, can find themselves struggling with debt, those working for themselves seem to be particularly vulnerable to debt problems.

"I would be particularly concerned about the strain of trying to seek enough work to maintain an income while struggling with debt. Anyone in this situation should not suffer alone, but seek professional advice and support."

The vulnerability of income for self-employed workers has been picked out as the main reason why they are more dependent on credit. Indeed, there was a six per cent drop in household income levels between 2011 and 2012 for those operating in this sector.

People who find themselves struggling financially should look at the various debt solutions open to them in an effort to bring their situation back under control.

One of the major problems that has affected consumers with tight budgets in recent years has been the way domestic energy prices have risen. For those struggling to pay their debt, increasing gas and electricity bills have made this task harder.

Much consumer anger and disappointment has been directed at the energy suppliers who have been announcing price hikes recently, but while ministers have been pushing for ways to limit the impact – such as introducing measures to ensure companies publish information on bills about cheaper available tariffs – the latest cause of an increase in costs could be driven by the government itself.

The newly-published Energy Bill is to allow energy firms to collectively charge households an extra £7.6 billion between now and 2020 to pay for the development of more renewable, low carbon energy.

Whatever its benefits for the environment or future generating capacity, the cost of this green development may be one that householders dread, with typical annual bills rising substantially. A Daily Telegraph report puts this at £95 and the BBC has stated a figure of £110.

A government statement said: "With a fifth of the UK's electricity generating capacity due to close this decade, reforms are needed to provide certainty to investors to bring forward £110 billion investment in new infrastructure to keep the lights on and continue the shift to a diverse, low carbon economy as cheaply as possible."

This may seem far from cheap to many people and those who are already struggling with debt might see it as the straw likely to break the camel's back.

In such cases, it may be a very wise move to seek debt help, to discover ways of spreading bills out more to allow more leeway, cut out unnecessary costs, find lower-interest deals and even, if needed, seek a debt management plan with creditors.

Concerns about rising bills are set to cause many people to ration their usage of energy this winter, with a recent uSwitch poll finding 87 per cent of consumers expect to do this over the coming cold months.

Posted by Paul Thacker
 

New data on pay in the UK has indicated a continued real-terms fall in remuneration.

The Office for National Statistics has published data for the 12 months to April 2012, showing the average gross weekly earnings for those working full time amounted to £506 – up 1.5 per cent from the 2011 figure of £498.

Over the same time, gross annual earnings were only up 1.4 per cent to £26,500.

Those who owe significant amounts of money may find they are more likely to need debt help as pay rates continue to trail inflation, which was persistently over three per cent for much of the period in question and peaked in September 2012 at 5.2 per cent.

At present, the Consumer Prices Index rate of inflation is 2.7 per cent, while the latest Bank of England quarterly inflation report, published earlier this month, said the prospects of higher inflation are greater now than they were in August.

By Joe White