How To Beat Tough Times – Money Watch: Earning It

BBC One · BBC · 05 Jul 2010 · by: BBC

In a new, three-part series, Sophie Raworth, Justin Rowlatt and the Money Watch team address key issues affecting the budget that really matters – the domestic one.

Britain has just been through the worst recession since the Thirties, wiping out chunks of the economy and leaving the country with huge debts. Now, we're told, recovery is on the way. But people are also facing the toughest squeeze in a generation, with many experts predicting job losses, pay curbs and years of rising taxes.

So what does all this mean for family finances? What will happen to employment prospects and pay? And what does it mean for savings, investments and pensions?

The first of the series, presented from Birmingham, tackles jobs and pay. BBC Business Correspondent Andy Verity travels to Banbury in Oxfordshire, where he discovers that although some have had a tough time in the downturn, others have done much better than expected – with new jobs on offer and rises in real incomes. The outlook, though, in the so-called "recovery" is pretty bleak.

Andy investigates why unemployment failed to rise as far as expected in the recession. One reason appears to be that employees up and down the country were expected to work more flexibly – in return for keeping their jobs. It could mean more time to pursue interests outside work, but the harsh reality for many is reduced pay and uncertain working patterns. Andy concludes that people had better get used to it, because, with the current economic troubles, the trend is set to continue.

Financial reporter Libby Potter, meanwhile, investigates why top earners have seen their pay continue to rise – even during the downturn. But with pressure building to curb top pay in the public sector, can the boardroom bonanza continue?

At the other end of the scale, Justin meets two people who decided to "go it alone" during the depths of recession: Angel, a dog groomer and spiritual healer; and Kirsten, who runs a restaurant in her living room. Why has there been such a surge in micro businesses? What are the benefits – and what are the pitfalls? Justin investigates whether they can survive in the tough times ahead...

And for those who can't go it alone but are still worried about their pay and employment prospects, money-saving expert Martin Lewis offers practical financial advice.