Pay rises could fall behind inflation by almost 8% later this year, marking the biggest fall in real wages for 100 years, according to analysis by the TUC.
The TUC said a prediction by the Bank of England that inflation would jump to 13% in the fourth quarter of this year at a time when wages were expected to increase by just 5.25% meant living standards would fall by an unprecedented 7.75%.
The figure was calculated by looking at the impact of inflation on workers’ living standards using the latest Bank forecasts. The TUC said that workers had not suffered such a severe and prolonged decline in wages relative to inflation since the 1920s.
Tens of thousands of workers have signalled that they are prepared to strike after a series of ballots for industrial action.
More than 115,000 UK postal workers are to stage a series of strikes later this … Read more