“The fact that the GDP has grown by 0.8% between July and September will mean nothing to the vast majority of people in this country faced with mounting household bills and stagnant wages.” said Dave Prentis, General Secretary of UNISON, the UK’s largest union.
The union is warning that the painfully slow progress is proof positive that the Government’s austerity agenda is failing the country and failing to stimulate the economy fast enough. For the vast majority of people their pay is worth considerably less than it was when the coalition embarked upon their austerity drive. And increases in the basics, such as rent, fuel and food, continue to run way ahead of wage increases.
Dave Prentis, went on to say:
“Today’s figures are not a precursor to a healthy recovery. Instead there is a real danger the government is repeating the mistakes of the past. The main reasons that the economy looks as if it is showing signs of life are because people are borrowing more to make ends meet, and because of the Chancellor’s unsustainable housing bubble.
“Ask a care worker, a nurse or teaching assistant whether the economy has gone from rescue to recovery and she will give you a straight answer – no – not for people like me. Talk of recovery is just an illusion for the vast majority.
“With so many job cuts and millions of workers stuck on low pay or hit with a pay squeeze, consumer confidence is low. Putting more money into people’s pockets would boost spending and help struggling businesses and local high streets to survive. And a proper plan for jobs, investment and affordable housing will help put the economy on a sound footing for the future.
“Even in terms of his own plan, George Osborne is still falling a long way short. He promised to fix the economy by 2015 – instead he is now saying a Conservative government wouldn’t eliminate the deficit until 2020.”
Evidence that George Osborne is on the wrong track is mounting. Prices have gone up faster than wages in 39 of the 40 months since the General Election
· In the last decade, gas and electricity bills have increased four times faster than inflation – up £300 since the General Election
· Property company LSL estimate that rents for homes in the private rented sector have increased by 9.2 per cent in the 12 months to September
– The Bank of England’s quarterly trends in lending report for October showed that unsecured borrowing – on credit cards, overdrafts and personal loans – has picked up sharply since mid 2012
· The Trussell Trust estimates that three times more people are using food banks than at this time last year
· The amount of money involved in payday lending has doubled over the last four years
· Figures from 114 local authorities suggest that 31% of all council housing tenants affected by the bedroom tax have been pushed into arrears.
