Ceridian Warns Osbourne’s Budget is a Bitter Pill to Swallow for Britian’s Weary WorkforceCERIDIAN WARNS OSBOURNE'S BUDGET IS A BITTER PILL TO SWALLOW FOR BRITIAN'S WEARY WORKFORCE
Following Chancellor George Osbourne's emergency budget, Ceridian has voiced its concern that added pressure will be placed upon Britain's weary workforce ahead of some of the toughest cut backs in a generation.
Commenting Simon Parsons, Director of Payment, Benefits & Compliance Strategies for Ceridian, said: "The Chancellor's task was no doubt a difficult one and we commend the new government's plans to cut the UK's deficit. Yet, despite the wider merits of the emergency budget, Osbourne's objective to 'spread the pain' was not entirely met, with increased pressure being placed upon those on lower and middle incomes.
"Changes to National Insurance, VAT, Income Support, Tax Credits and child benefit will see the average family - with both parents in employment - face a reduction in their disposable income by approximately £500 per year. Although an insignificant amount of money to some, this - coupled with the government's own prediction that there would be a short term rise in unemployment - will be a bitter pill to swallow for those already in precarious financial situations."
Research carried out by AXA in 2009 suggested that 25 million Britons were suffering from financial anxiety, with 1.4 million employees taking time off work as a result. Meanwhile, recent statistics from Ceridian's Employee Assistance Programme, Lifeworks, has shown a 25% increase in calls relating to anxiety and depression over the last year - with many callers having underlying financial worries.
Budget announcements that will have a particular effect on individuals include the abolition of Child Trust Funds, and a restriction on child tax credits for those earning over £40k.
Simon continues: "With evidence suggesting that financial difficulty is a key source of employee stress, these cut backs could have a devastating affect on the UK's workforce. Reduced productivity, exasperated physical and emotional problems and increased employee turnover are just some of the affects that financial stress can have.
"Now, more than ever, it is vital that employers have solid strategies in place to ensure the engine of their business, the workforce, is fully supported."