Inflation: Chancellor must protect pay to prevent spending restraint harming the recovery

Commenting on today’s (Wednesday) inflation figures, which show CPI inflation at 3.1% in September – and expected by Bank of England to rise above 4% this winter – TUC General Secretary Frances O’Grady said: 

“Inflation is still well above pay rises in the public sector and for those on the minimum wage. That puts the economy at risk from a fall in spending as families tighten their purse strings. It’s the last thing businesses need while they are trying to recover from the pandemic.

“The Chancellor must deal with this risk at the spending review. He must fully fund a real pay rise for public sector workers. And it’s time to boost the minimum wage to £10 per hour.”