Emergency Budget needed as household incomes “obliterated” by “spiralling” cost of living

Commenting on the latest employment figures published by the ONS on Tuesday, which show that real wages fell by 2 per cent (using CPI) over the year, TUC General Secretary Frances O’Grady said:

“Everyone should have the security to be able to pay their bills.

“But household incomes are being obliterated as wages fail to keep pace with the spiralling cost of living.

“We can’t go on like this. The Chancellor must come back to parliament with an Emergency Budget to help people through this crisis.

“Rishi Sunak should immediately boost the national minimum wage, universal credit and pensions. And he should bring down energy bills by using a windfall tax to fund grants – not loans.

“Rising hardship is a political choice. Ministers must not abandon families in their hour of need.”

Commenting on the sharpest real wage fall in public sector pay on record, Frances added:

“Our amazing key workers put their lives on the line to get us through the pandemic.

“The very least they deserve is a decent pay rise.

“But after a decade of having their wages held down by ministers more pain is on the way.

“At a time when many key workers feel exhausted and burnout and – and when staff shortages are really hitting our public services – this is the last thing the country needs.”