Unemployment highest in 12 years

Unemployment in the UK has risen to 2.261 million, it was revealed – the highest number since November 2006.

This equates to 7.2% of the UK workforce out of work. Young people have been hit hardest by the recession, with unemployment among 18-24 more than double the national averages, at 16.6%.

As more people find themselves out of work, more will require debt advice, as it becomes harder to make ends meet.

However, there was more good news for those in work. According to the Office of National Statistics, average earnings rose by 0.8%. Although it has to be taken into account that these figures include bonuses paid out in the financial services sector.

The number of job vancancies has also fallen recently, from 659,000 in May 2008 to 424,000 in May 2009.

A guide to Debt Relief Orders

Those on low incomes and with very few assets can get help to escape from debt through Debt Relief Orders, which came into being in April 2009.

If you have less than £15,000 unsecured debt, less than £50 monthly disposable income to clear it and less than £300 in assests, you will be able to apply for a Debt Relief Order, which will help people in England and Wales.

The Scottish equivalent is LILA (Low Income, Low Assests).

Debt Relief Orders have some advantages over bankruptcy. For example, it costs £495 to enter bankruptcy, compared to just £90 for a Debt Relief Order.

However, it will remain on your credit history for six years, and will be on public record for 18 months. During this time you will be unable to get credit of more than £500.

Like all debt solutions, Debt Relief Orders have some restrictions. You should think carefully before deciding if it is right for you.

Half of population not planning for retirement

Half of the UK population are not saving for their retirement – which is a disturbing statistic when you realise that the country already has an aging population and that the state pension is under pressure.

A survey showed that most adults were concerned with clearing debt rather than paying into a pension plan.

The situation was worse among those aged 30 and under. In this group, only 36% had began to plan for their retirement.

Among those aged 41-60 only 55% were paying into a pension. The growing redundancy rate is thought to be a reason why many people are not paying into private pension funds.

The survey was commission by the BBC.