Millions of workers still in the grip of cost-of-living crisis, unions warn

TUC General Secretary Paul Nowak

Unions have warned that workers are still suffering from the cost-of-living crisis, struggling to make ends meet despite a dip in inflation rates.

The TUC has highlighted that, although prices continue to rise and households face steeper food and energy bills compared to a few years ago, the situation is exacerbated by "soaring" mortgage repayments. TUC General Secretary Paul Nowak remarked: "The cost-of-living crisis is not over, no matter how much ministers pretend it is."

He added: "While it's good the inflation rate is lower, millions up and down the country are still having to cut back on everyday essentials as they struggle to make ends meet. That's because household budgets have been decimated by the highest price rises in the G7 and wages have flatlined over the last 14 years."

He continued: "Pay packets are still worth less today than in 2008, with working people on course to end this parliament poorer than at the start. The Tories have delivered the worst period for living standards in generations."

According to TUC research, nearly 60% of people feel their living standards haven't improved this year, with many reducing their food spending. Unite Union General Secretary Sharon Graham said: "We are not out of the woods. Over the past three years prices have risen by 29%, while wages have lagged far behind. The inflation crisis has meant a generational drop in living standards, and we're a long way from catching up."

Ben Harrison, director of the Work Foundation noted: "Workers across the country might be quietly relieved that their bills and shopping are rising at the lowest level since 2021, but, even at 2.3%, inflation remains above the Bank of England's target and many people will be facing lower living standards for some time to come."

"The truth is the worst cost-of-living crisis for more than 40 years is not yet over most workers continue to face energy, food and housing costs that are much higher than three years ago."

"The sting in the tail is interest rates remain at a 16-year high of 5.25% and, while there is no guarantee the Bank of England will cut interest rates soon, low-paid and insecure workers are particularly exposed to record private rent increases and higher mortgage payments."