Unemployment and insolvency are set to get worse, according to experts.
In a report published by the Telegraph corporate rescue and recovery specialists Begbies Traynor said that the UK was in the middle of a 'W' shaped recession.
Ric Traynor, executive chairman of at the firm, said although the UK may be "in the eye of the storm".
He told the newspaper: "The unemployment and insolvency peaks of this recession remain some way off.
"Experience of the last four recessions tells us that unemployment levels and corporate and personal insolvencies are lagging indicators."
The news comes after research from the Citizens Advice Bureau revealed that Brits were struggling to get credit as fuel debts increase.
According to ONS figures, unemployment has risen to more than two million, while among young people below the age of 25 the figure has increased by 19,000 to 945,000.
