New research for UNISON, the UK’s largest union, shows that public sector workers and their families will be many thousands of pounds worse off in 2015 compared to when the coalition took office.
The prolonged pay freeze and squeeze, spending cuts, VAT increases, benefits and tax credit changes as well as inflation, which is pushing up the cost of living, will rob hardworking families of up to 50% of their household earnings by the end of this parliament, said the union.
The research by Landman Economics uses financial models to show the multiple hits to earnings for different families in various occupations since 2010, which the union says is contributing heavily to the persistent lack of growth in the economy.
The average single-parent paramedic with two school aged children will see their family income decline by a massive 27%, or £6,563, since 2010.
A two child family, with parents working as a nurse and on an average private sector worker’s wage, will lose 18.9% or £8,009 by 2015.
The lowest paid workers have faced the hardest hit; a single healthcare assistant with two children earning £15,194 in 2010 will lose more than 50% of their income when adjusted for tax and benefit top ups, the pay freeze, service cuts and inflation.
A care assistant earning just £16,393, with two school aged children and a partner working in the private sector will see 30% or £8,806 wiped off their income over the course of this parliament.
For a teaching assistant in a couple with two school aged children the financial hit is 20% or £7,901.
A single social worker with no children will lose £1,627 or 5% of their gross earnings by 2015.
Given that nearly half of all households have more than one public sector worker, the picture will be just as bleak in countless households across the country, said the union.
Dave Prentis, UNISON General Secretary, said:
“Far from the government’s strivers and shirkers rhetoric, hardworking families are coming under heavy fire from the coalition. These families did not cause the crisis, but over the course of this parliament they will pay a huge price for it.
“The damaging effect of this unprecedented squeeze cannot be underestimated. Working people are turning to food banks, parents going without meals and holidays are a distant memory.
“We are urging the government to end the squeeze on pay, and to look again at the tax and benefit changes that are hitting those on low and middle incomes so hard.
“By taking money out of people’s pockets, this government has hit hard our chances of recovery. No wonder our economy is stubbornly stagnant – people have no money to spend.
“Where there is a will there is a way. Instead of this ruthless strategy, the government could take serious action on tax havens and tax avoidance, put in place a Robin Hood Tax or reverse the millionaires tax cut which has cost our country more than £2bn this year alone.”