Younger IT contractors on lower incomes have been overlooked during the recession, as support is focused on other economic groups, a new report claims.

While government concentrates on supporting those who are either benefit dependant or high earners looking to find new jobs, workers on lower incomes have been forgotten, according to the Resolution Foundation.

Of all the low-earners between the ages of 25 and 34 surveyed, 66 per cent had reported a drop in income, compared to 50 per cent of the benefit dependant group and 33 per cent of higher earners.

Reacting to this report, chairman of the Recruitment Society Steve Huxham said that employers now needed to take responsibility for developing and training younger workers.

"As part of their need to both attain those people and to improve their prospects, there is a lot more that can be done by employers to encourage their younger workers who are unqualified to take on extra courses and skills," Mr Huxham added.

According to new figures from Incomes Data Services, around a third of workers are subject to a pay-freeze this year, yet the average settlement value has increased by 1.9 per cent.