Cost of living crisis: Brits cannot expect pay rises to keep up with inflation, Treasury warns | Political news



Britons cannot expect pay rises to keep up with soaring costs of living, the government has warned.

Chief Treasury Secretary Simon Clarke said matching wages to inflation risked pushing up prices in shops even further.

His intervention comes as more than 40,000 workers prepare for a three-day strike that will cripple large swaths of Britain’s rail network.

The RMT union said it was “unacceptable that railway workers would lose their jobs or face another year of wage freezes” when inflation was at its highest level in 40 years.

An empty platform is seen during rush hour at Waterloo station in London August 29, 2006

And in other developments, tens of thousands of people are expected to demonstrate on Saturday – calling on the government to do more to tackle the cost of living crisis.

The protest was organized by the TUC union, which says workers have lost nearly £20,000 since 2008 because wages have failed to keep up with inflation.

Read more:
Food inflation will accelerate this summer and prices will remain high
Eight million households will start receiving child support payments in July

Mr Clarke was quoted by The Daily Telegraph as warning that Britons cannot have ‘unrealistic pay expectations’ – adding big pay rises would make the crisis worse.

He told the newspaper: “We have to be very careful at this point to prevent inflation from becoming a self-fulfilling prophecy.”

Munroe Elementary teacher Melissa Curry holds a sign during a rally in front of the Colorado State Capitol as Denver Public School teachers strike for a second day in Denver, Colorado, USA United, February 12, 2019. REUTERS / Michael Ciaglo

Teachers are reportedly planning to demonstrate en masse to demand better pay and conditions.

Their union, the NASUWT, said teachers were at the heart of the cost of living crisis, with essential living expenses outstripping salaries and the value of their salaries falling by 19% over the past 12 years.

Eight million households will start receiving cost-of-living allowances from July 14. Low-income households on benefits will receive £326 next month as part of a £21 billion assistance package to help deal with soaring bills, which was announced by the government last month.


You Can Read Also

Sports News



Leave a Reply

Your email address will not be published.