Families hit by years of wage stagnation and ‘dismal growth’, says TUC

Families have struggled with the cost of living crisis because of years of wage stagnation and “dismal” economic growth, according to a report.

The TUC said its research showed that the UK suffered the highest inflation and lowest economic growth of any G7 country since the end of 2021.

The union organisation said its study showed that over this period UK prices increased by 14.2% while the economy grew by 0.4%.

The TUC described the UK’s economic performance as “dismal” compared with other leading economies.

It said that from the fourth quarter of 2021 to the same period in 2023 inflation increased by 10.7% on average across the G7 group of countries, while economic growth increased by 2.7% on average.

Across the eurozone inflation increased by 13%, while economic growth increased by 2% on average, while only five countries in the OECD (Chile, the Czech Republic, Estonia, Lithuania and Sweden) have done worse than the UK on both inflation and growth, said the report.

TUC general secretary Paul Nowak said: “UK households have been clobbered by the highest price rises in the G7, while growth has tanked compared to other countries.

“The Tories have deepened the cost-of-living crisis for millions.

“The reason why so many families have struggled to make ends meet and spend in their local economies is because of years of wage stagnation and years of dismal growth.

“It beggars belief that 14 years on from the financial crisis, pay packets are still worth less than in 2008.”