Insolvencies ‘will go on rising’

The risk of people suffering further debt management problems by losing their jobs has been highlighted by the Confederation of British Industry.

CBI director of corporate affairs Matthew Fell said that while the economy appears to be coming out of recession, the severity of the downturn has been such that “it is not surprising” that “we continue to see a high number of financial difficulties with firms”.

Mr Fell predicted that the level of economic growth will be “pretty sluggish” until it picks up in 2011, meaning that in the months to come there will be “more pain to go on the jobs front”, with unemployment peaking at 2.8 million.

Such a rise could cause huge problems for those already struggling to pay their debts on their present incomes.

The comments come as the Unite union has urged Lloyds Banking group not to follow last year’s pattern of repeated job cut announcements, following news that the firm is cutting 400 jobs at its Black Horse centres.

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