I graduated from university with a 2:1 in 2004. I decided to take a year out before applying for a PhD, which would begin in Oct 2005. I 've been finding it really hard to get a lab job to gain some lab experience, will this affect my chances of getting a PhD at all?

It shouldn't stop you getting a PhD place, but would definitely be an advantage. If you can't get work in a research lab, try one of the many temping agencies for laboratory staff. The work you'll end up with will probably be very routine and not necessarily in a research lab, but it will be useful - and you'll get paid.

Sarra I'm in the same position. So long as you've been working and taken a bit of a holiday or done some travelling, just tell them you took a year out for financial reasons and to travel. You're entitled to a year out so it won't make a difference so long as you didn't waste time. Lab work is just an advantage.