Pay rises not enough to prevent tough income squeeze, says TUC

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date: 2 March 2011

embargo: 00.01hrs Thursday 3 March 2011

Commenting on the latest pay settlements survey published today (Thursday) by Incomes Data Services TUC General Secretary Brendan Barber said:

'As more companies move back into the black, increased profits are being reflected in improved pay settlements.

'But wages are still losing ground to rising living costs and the government is pushing through a downward wage spiral in the public sector - with pay freezes and bigger pension contributions - while inflation is around five per cent.

'This combination of tough pay settlements, tax rises and tax credit cuts due to start in April means that ordinary workers, and working families in particular, are about to experience one of the toughest income squeezes for a century - one that will test the economy's ability to bounce back.'


- RPI inflation - the measure most commonly used in wage negotiations - was 5.1 per cent in January 2011, while CPI inflation was 4 per cent. The inflation figures for February will be published at 9.30am on Tuesday 22 March.

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