UNISON has condemned the gross injustices of the government’s pay policy which were exposed this week by contrasting reports on the fortunes of bosses and workers.
Energy regulator OFGEM revealed that the big six energy companies picked up £1.2bn in profits during 2012. And private contractor Compass, a key beneficiary of the government’s privatisation of public services, announced £1.2bn profits. It accompanied its profit announcement by rewarding shareholders with a £500m payment.
At the same time, two studies of personal debt* were published showing that debt levels have hit record levels: nine million people across the UK (18% of the total adult population) are living with serious debt problems and the number of home repossessions has hit 34,000.
UNISON assistant general secretary Karen Jennings commented: “This shocking scale of personal debt is the inevitable consequence of the government’s strategy of cuts and wage freezes as the cost of living rises ever higher. The human cost of this policy is paid by millions through the intense stress it places on individuals and families, unable to meet the cost of basic food, energy and housing costs.
“The distress of families seeing their home repossessed isn’t something that the millionaires in the Cabinet will be very familiar with, but for thousands of their constituents it is the final outcome of years of battling to meet the bills and keep creditors at bay.
“The contrast couldn’t be greater – while the government is so keen to try to shackle the wages of ordinary workers it places no limits on the riches corporations gather from our public services.”
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* Centre For Social Justice: “Maxed Out”
The Money Advice Centre: “Indebted Lives: The complexities of life in debt”