Millions of workers are facing a cost of living “storm” this Christmas amid soaring bills and falls in their pay, according to a new report.
The TUC said its study suggested that workers are set to have the worst “Christmas wage squeeze” in nearly a decade.
Its analysis of official statistics indicated that real wages – after the cost of living has been taken into account – this month are on course to be 0.8% lower than in September.
In the last quarter of the year, pay has grown by 0.8%, half as much as inflation (1.6%), said the union organisation.
Working households have been affected by rising bills and the cut to Universal Credit and will be hit next year by the increase in national insurance contributions, said the TUC.
Ministers were urged to come up with a long-term economic plan to get wages rising across the economy.
TUC general secretary Frances O’Grady said: “People should be able to look forward to Christmas without having to worry about how they’ll pay for it.
“Millions are facing a cost of living storm as bills soar and real pay falls. After more than a decade of wage stagnation, this is the last thing working families need.
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“The Government can’t sit this crisis out. We need a proper plan to get pay packets rising across the economy, or the squeeze on household budgets will continue.
“Ministers should get around the table with unions and employers now and work out fair pay agreements for every industry. That’s the best way to boost living standards and ease the pressure on households.”