Latest ONS figures show a fall in real wages among the largest since comparable records began
‘Put money in people’s pockets’ the Trades Union Congress (TUC) urged minsters today, following new ONS figures which revealed a fall in real wage growth and public sector pay.
The latest ONS figures showed that real pay fell by 2.3% whilst total pay fell by 3.0% in the past year, whilst TUC said public sector pay plummeted by 4.5%.
This remains among the largest falls in growth since comparable records began in 2001. A larger fall was last seen in February to April 2009, when it fell by 4.5%.
The latest figures provide further evidence that pay for workers is not rising quickly enough to tackle price inflation, with the headline rate of inflation currently at 10.4%.
Alex Collinson, Analysis and Research Officer at TUC, commented that this was already the longest pay squeeze in living memory, and that it’s forecast to last another three years.
In reaction to the data, Paul Nowak, TUC General Secretary, called on the government to boost the minimum wage to £15, give public sector workers a real pay rise and stop the Strikes Bill.
“The longest wages slump in modern history shows no sign of letting up,” said Nowak.
“Hard-pressed families can’t take much more. It is no surprise that workers are having to take strike action to defend their living standards.
“Ministers should be focused on resolving all of the current pay disputes.
“And they must act now to put money in people’s pockets – starting with giving our public sector workers a real pay rise, boosting the minimum wage to £15 as soon as possible, and ending their attack on the right to strike for better pay and conditions in the Strikes Bill.”
Unite the Union’s General Secretary Sharon Graham said the drop in value of wages showed the importance of unions to defend workers’ pay.
She also blasted politicians for allowing ‘endemic profiteering’ to drive the cost of living crisis and for expecting workers to foot the bill.
Graham said: “Despite what the chancellor and others in government say, it is abundantly clear that wages are not driving inflation.
“At the same time as real terms pay for working people has plummeted, corporate profits have soared to astonishing new heights.”
Days lost to labour disputes in this country increased on last year, with 348,000 working days lost in February 2023, up from 210,000 in January 2022.
Nowak said the last thing workers wanted was to lose more pay by taking strike action and accused ministers of ‘dragging their heels’ on meaningful negotiations, leaving workers with no choice but to strike to defend their pay.
Nowak concluded: “The Conservative government will not resolve pay disputes by rushing in new laws that attack the right to strike.
“The best way to settle disputes is around the negotiating table – and with credible pay offers that protect workers from rising prices.”
Hannah Davenport is trade union reporter at Left Foot Forward
Left Foot Forward’s trade union reporting is supported by the Barry Amiel and Norman Melburn Trust
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