2% inflation means bad news for public service workers - UNISON

Tuesday 14 January 2014

New figures showing inflation at 2.% in December brings no relief for public sector workers hit by the Government's pay freeze and squeeze, said UNISON, the UK's largest union. A fall in inflation is only positive news if earnings are keeping pace with overall inflation warned the union.

UNISON General Secretary Dave Prentis said:

"Inflation might be 2% but across the country, the reality is families are still struggling to make ends meet. There is no feeling that day to day life is improving for the vast majority.  It is only the financial elite in  the City who are looking forward to bumper bonuses this year.  The rise in the Retail Price Index to 2.7% shows the underlying cost of living crisis is getting worse.

"With transport, energy bills and  childcare cost going up, households have seen family finances significantly reduced with average earnings rising by less than the rate of inflation for the fifth year running.

“For public service workers hit hard by the Government's freeze and squeeze on their pay, 2% inflation means more hardship. Workers continue to see a squeeze in their pay and the cost of living crisis will carry on as long as their pay does not increase. It's high time the Government did something to help the millions of working families living in poverty and stopped pretending things are getting better."

UNISON UK News release: http://www.unison.org.uk/news/2-inflation-means-bad-news-for-public-sector-workers