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The recession in the UK could be "more serious" than the one in the early 1990s, it has been claimed.

According to Defaqto, the average household is in more debt than it was ten years ago.

Similarly, in 2011 some of the 'baby boomer' population will begin to reach the age of 65 so many people feel they need to try and save more, which could make the recession even deeper.

Michael Baxter, an economist, said of the situation: "That wasn't a problem in the early 1990s; there wasn't this need to radically increase our savings ration back then."

He also said he was not surprised that the UK's economic growth contracted the third quarter of the year.

According to the Office for National Statistics, Gross Domestic Product (GDP) fell by 0.5 per cent over the last quarter.

A recession is defined as when the GDP of a country declines for two consecutive quarters.

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