DWP-figure driven review of clients needed - Cirencester

The national statistics on Households Below Average Income from the Department for Work and Pensions (DWP) today showed 15% of working-age adults had incomes below 60% of median net disposable household income Before Housing Costs (BHC), and 21% After Housing Costs (AHC). Both have fallen 1 percentage point since 2009 to 2010 figures.

Bridge said: "Having a steady income appears not enough to guarantee a life free from poverty. These are clearly incredibly tough times for families across the country and they show no sign of getting better.

"Given this squeeze on personal finances it is increasingly important to talk to clients about income protection.

"As the general cost of living rises, so too does the need for income protection and that argument is made even stronger given these new figures and as the Government seeks to cut the Benefits Bill."

He added purchasing protection would require a change of thinking given already-shrinking budgets, and intermediaries should ensure advice provided matched a new reality.

A Santander report has shown only 1 in 3 feel optimistic about their financial future. Neil Prothero, lead UK analyst of the Economist Intelligence Unit, said of the findings that unemployment would continue to rise in the next year at least.

He said: "Large swathes of the population are currently experiencing stagnant wage growth and rising costs."

The DWP statistics focus on the lower part of income distribution, for the period 2010 to 2011. The latest release updates the statistics previously released on 12 May this year.

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• Income Protection
• DWP
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