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New figures published today (Tuesday) by the Office for National Statistics (ONS) show that the UK’s living standards crisis is worse than previously thought, says the TUC.

While the new ONS figures show better economic growth than previous estimates, they also revise down estimates of household disposable income.

For 2013, real household disposable income per capita – the most comprehensive measure of living standards – is now estimated at 2.7 per cent below its peak, compared to the previous estimate of 1.8 per cent.

The estimate of GDP is now 2.7 per cent higher than the pre-crisis peak in 2008, compared to the previous estimate of 0.2 per cent. However, the share going to labour in 2013 has been revised down from 53.7 per cent to 51.2 per cent.

TUC General Secretary Frances O’Grady said:

“While the size of the economy has been revised up, household incomes have been revised down. It turns out the UK’s living standards crisis is even worse than we thought.

“This is set to be the first full Parliament since the Second World War when the government leaves office with people’s pay packets worth less than when they came into power.

“There is something deeply wrong when the economy is growing, but the people who do all the work face ever shrinking pay and falling living standards.

“We need an economy where everyone gets a fair share of growing prosperity instead of just a few at the top, with growth driven by rising wages rather than growing household debts.”

NOTES TO EDITORS:

- Details of the revised figures indicating the fall in living standards (real disposable income) can be found in table 1.1.5 of the UK Economic Accounts, Q2 2014: http://www.ons.gov.uk/ons/rel/naa1-rd/united-kingdom-economic-accounts/q2-2014/index.html

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

- On Saturday 18 October the TUC is organising Britain Needs a Pay Rise – a national march and rally in London to call for an economic recovery that delivers for everyone, and for fair wages to help end the living standards squeeze. For more information on the campaign go to http://www.tuc.org.uk/economic-issues/britain-needs-pay-rise

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