TUC urges next Government to boost pay amid escalating ‘living standards crisis’

Unsecured debt per household was £13,200 in 2016, according to the TUC, which is the highest figure since the financial crisis

Wages in the UK are still worth around £20 per week less than before the financial crisis, according to the TUC (Getty)

The TUC has urged whatever Government is elected next month to deliver higher wages for workers across the UK to combat an escalating “living standards crisis” as household debt heads towards a record high.

Unsecured debt per household was £13,200 in 2016, according to the TUC, which is the highest figure since the financial crisis, and only marginally below the peak of £13,300 in 2007.

It’s set to reach a record high of £13,900 in 2017 and will exceed £15,000 before the end of the next parliament, the TUC said.

The sharp rise reflects a “living standards crisis” and is putting the economy “in the danger zone”, said TUC general secretary Frances O’Grady.

“We’ve got this problem because wages haven’t recovered. Credit cards and payday loans are helping to prop up household spending for now, but millions of families are running on empty,” she said.

Figures published by the Office for National Statistics last week confirmed that real wages are now falling and the TUC said that wages in the UK are still worth around £20 per week less than before the financial crisis.

Nominal total average wages grew at an annual rate of 2.4 per cent in the three months to March, which was fractionally higher than inflation in March of 2.3 per cent.

But according to the ONS, prices were up 2.7 per cent in April, meaning that inflation-adjusted wages are now likely to be negative for the first time since 2014.

The spike in inflation reflects a near 13 per cent slump in the value of the pound against the dollar since last June's Brexit vote.

“The next Government must act urgently to deliver the higher wages Britain needs for sustainable growth. They must boost the minimum wage, and end pay restrictions for public servants like nurses, firefighters and midwives,” Ms O’Grady said.

“A lot more Government support is needed for the parts of Britain where well-paid jobs are in short supply,” she said.

“Communities that lack good jobs today could thrive tomorrow if they get proper investment in training, transport links, broadband and decent housing.”