With the Office for National Statistics reporting that the UK’s jobless rate now stands at 8% (ONS, March 2011) - the highest for 15 years, Paymentcare.co.uk MD Shane Craig said there was evidence that British workers were far from relaxed about job security.
“According to official data, UK unemployment rose by 27,000 in the three months to the end of January to 2.53 million – a great deal of people are out of work, and it comes as no surprise that our enquiry levels have risen,” he said.
“While we now have around 8% of the work force out of work, it is important to remember that the other 90% plus are in full or part time employment – which is good news.
“But there is a good deal of nervousness out there, especially in the public sector, where we are expecting to see more cuts as the year progresses,” added Craig.
“We have experienced a rise in enquiries from the public sector, as you might expect, and with the Organisation for Economic Cooperation and Development cutting its forecast for UK economic growth in 2011 (source: OECD, March 2011), continuing nervousness across both public and private job sectors is likely to prevail in 2011.”
With the Government set to slash more than 300,000 public-sector jobs over the next four years, Craig said he expected to see continuing steady demand for both loan PPI and MPPI.
“Many companies have now withdrawn their payment protection cover products from the market in the wake of the investigation into the industry by the Office of Fair Trading.
“The controversy over point-of-sale activity – typically where banks and other lenders sold uncompetitive products to consumers at the point of taking out loans – means there are fewer options now when it comes to finding good, independent cover.
“As we continue to be in an uncertain employment climate, it is vitally important that borrowers continue to protect their ability to keep up their loan repayments should they lose their job or be unable to work due to accident or illness, especially given the current economic climate,” Craig added.
