Businesses are less likely to offer skills and training to lower paid employees, the acting director at the Resolution Foundation has commented.

Sophia Parker added that this puts lower earners at a disadvantage in terms of career progression and getting ahead.

Speaking at the Northern Money Conference 2010 at the Contemporary Urban Centre in Liverpool on March 1st, Ms Parker noted that low earners are in a more vulnerable position as a result of the recession.

She explained that this is because this group often lack the safety net of savings and insurance and tend to spend all of their disposable income each week so they have little financial flexibility should their hours be cut.

"When you have got so little room for movement, simply losing hours can make a very real difference," Ms Parker added.

Research from uSwitch.com has revealed 11 per cent of consumers in the UK are living beyond their means, with 48 per cent using overdrafts to supplement their income.