TUC: Britons face biggest drop in real income since 1977

Wages in the UK fell by the highest since 1977 3% against the backdrop of a high rise in the cost of living, should from the analysis of the British Trade Union Congress (TUC).

“This is the sharpest drop in real wages since 1977 and the second worst on record since 1945. Working people lost an average of £76 a month in 2022 as their wages failed to keep up with inflation.” , says the analysis.

The TUC says the current wave of strikes in the UK is the result of workers being “driven to the limit” by years of wage austerity. The union body reiterated its calls for ministers to enter into meaningful wage negotiations.

“People should be able to look forward to Christmas without worrying about how they will pay for it. But family budgets have been crippled by rising bills and more than a decade of payroll deductions. The Conservatives led the longest decline in real wages in more than 200 years. It’s a shame,” said TUC Secretary General Frances O’Grady.

Treasury Minister Jeremy Hunt has previously acknowledged that the country’s economy is falling into recession. The Kingdom’s Office of Budgetary Responsibility, Hunt notes, predicts the economy will shrink by 1.4% next year, below the previous official growth forecast of 1.8%. He also downgraded his forecast for 2024, blaming it on “global headwinds”, primarily the rise in energy prices, which was allegedly caused by “Russia’s military actions in Ukraine.”

The energy crisis worsened in 2022 due to interruptions in energy supplies from Russia after the start of a special operation in Ukraine and the subsequent anti-Russian sanctions. The price of gas in early March set an absolute record, when TTF futures quotes approached $3,900 per 1,000 cubic meters. m. Subsequently, gas prices in Europe declined, but are still a multiple of the pre-pandemic level.