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Chancellor has gone “from pay freeze to pay squeeze” – says TUC

Commenting on the budget and spending review , TUC General Secretary Frances O’Grady yesterday said:

“The chancellor has gone from pay freeze to pay squeeze.

“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.

“Millions of key workers who saw us through the pandemic will still be worse off than they were in 2010. That puts vital services under pressure as even more staff leave, and it risks the recovery.  

“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.

“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”

On the universal credit taper cut, she added:

“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”

Editors Note

  • Pay forecasts: Treasury and OBR documents published today show that real pay is set to fall by 0.1% in 2022, and will only rise by an annual average of 0.3% from 2022-2025.
  • Public sector pay since 2010: TUC analysis has found that wages for many public sector workers are still worth significantly less than in 2010, due to several years of pay freezes and pay caps. This includes:

In the NHS: 

  • Paramedic pay is down by £3,194 
  • Nurse pay is down £2,469 
  • Porter pay is down £771 

In local government: 

  • Care worker pay is down £1,490 
  • Refuse collector pay is down £1,519 

And for other public sector key workers: 

  • Firefighter pay is down £2,579 
  • Teacher pay is down £2,003
  • Public sector key workers wanting to quit: Research published earlier this month by the TUC found that pressures including low pay, excessive workloads and a lack of recognition are pushing many public sector key workers to the verge of quitting.

More than a quarter (27%) of public sector key workers say that government policy on public sector pay has made them more likely to quit.

And one in five key workers (21 per cent) are “actively considering” quitting and changing profession.

Of the one actively considering quitting:

  • Well over half (57%) say it is because they feel undervalued.
  • More than two in five (43%) say it is because pay is too low.
  • Over a third (35%) say it is because of an excessive workload. 

More information is here: https://www.tuc.org.uk/news/one-five-key-workers-public-sector-actively-considering-quitting-new-tuc-poll

  • TUC spending review submission: In its spending review submission, the TUC called on the government to make the UK economy more resilient by building back stronger public services - with funding settlements to restore pay lost since 2010, reduce excessive workloads and fill gaps in provision. More information on the recommendations made in the TUC submission to the spending review is here: https://www.tuc.org.uk/news/tuc-spending-review-submission-boost-pay-and-build-resilient-economy


Original article link: https://www.tuc.org.uk/news/chancellor-has-gone-pay-freeze-pay-squeeze-says-tuc

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