The Trades Union Congress (TUC) is putting intense pressure on Chancellor Rachel Reeves to deliver what it terms a 'living standards budget' this Wednesday, aiming to alleviate the financial strain on households across the nation.
The Tory Pay Hangover
According to stark new analysis from the union body, working people in the UK are still grappling with what TUC General Secretary Paul Nowak describes as a 'painful Tory pay hangover'. The data reveals a devastating picture of wage stagnation over more than a decade.
The research shows that real wages grew at a paltry average of just 0.04% per year under Conservative governments between May 2010 and April 2024. For public service workers, the situation was even bleaker, with no real wage increase at all during this period.
The TUC calculates that the average worker is now just £12 a week better off than they were in 2008. Had wage growth continued at the pre-2010 rate seen between 2000 and 2008, workers would be earning a staggering £317 more per week.
Key Demands for the Budget
Paul Nowak has explicitly urged the Chancellor to use the upcoming fiscal statement to demonstrate that the government is firmly on the side of working people. His central demands include:
- Showing ambition on the minimum wage to ensure a fair day's pay.
- Taking decisive action to bring down soaring energy bills.
- Scrapping the two-child benefit cap in full to address poverty directly.
The TUC is also demanding that the budget confronts the 'child poverty emergency', a move backed by public opinion. New polling conducted by Survation indicates that 83% of the public agree that no child should be living in poverty in the UK.
A Crucial Moment for the Government
This budget is seen as a critical test for the Labour government. Nowak stated that the administration has 'lots of ground to make up' after years of pay stagnation, framing the announcement as a crucial moment to show ministers are on the side of working people.
The unions' calls come amidst renewed pressure from business groups for the government to reconsider its plans on employment rights, setting the stage for a tense pre-budget atmosphere. Reports suggest Chancellor Reeves may be preparing to act on the two-child benefit limit, a key TUC demand.
