Disadvantaged families may need IVA advice

Rhian Beynon, head of policy and campaigns at Family Action, has expressed her concerns towards already disadvantaged families being hit by the recession, increased household spending, and low incomes resulting in exclusion from mainstream credit.

It was now "vital" that the government addresses such issues, said Ms Beynon.

"In the end their incomes need boosting through increased benefits and tax credits and making sure that those who can only get part-time work are at least better off through working by increasing the earnings disregard for benefits to £50 a week," she claimed.

Ms Beynon's comments follow a speech by governor of the Bank of England Mervyn King, warning of salary freezes and rising inflation.

Mr King said the patience of UK households was likely to be "sorely tried" over the next couple of years, with little scope for real take-home pay, and a marked increase in inflation during the first half of the year.

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