Paul Nowak, general secretary of the Trades Union Congress, will warn in his 2024 annual speech that Britain “cannot afford to join the Conservative Party”.
by Tim Baker, political reporter
Friday 29 December 2023 04:59, UK
According to an analysis by trade union organizations, households will face a “debt time bomb” next year.
of trade union conference This includes GMB, Unite and Unison, but it predicts unsecured debt will rise by £1,400 in 2024.
This includes borrowings that are not secured by real property, such as loans, credit cards, and rental agreements, but does not include mortgages. The TUC also excluded student loans from its forecasts.
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According to TUC, unsecured debt The national burden per household is expected to rise by around 11% from £13,361 in 2023 to £14,792 next year.
The group predicts this figure could rise to £17,719 by 2026, with the previous high of £16,800 set in 2007.
They calculate their numbers by combining existing figures from the Office for National Statistics with future projections from the Office for Budget Responsibility.
The TUC said “working people” were “left exposed to harsh conditions”. Cost of living Real wages will not recover to pre-2008 levels until 2028 “unless something changes,” he added.
At this point, unsecured debt per household could reach up to £19,117.
According to the TUC, the average worker would be £14,800 better off if wage growth had reached pre-crisis levels.
The trade union group’s general secretary, Paul Nowak, will warn in his annual speech in 2024, when elections are held, that Britain “cannot afford to be part of the Conservative Party”.
TUC is the government’s claim National insurance cut The lack of growth in living standards coupled with rising debt will “more than annihilate” them.
Inflation falls more than expected
Meanwhile, Torsten Böll, director of the Resolution Foundation think tank, warned that next year will be “disruptive”.
He said the rise in interest rates meant around 1.5 million mortgage holders would have to come up with an extra £1,800 a year, despite inflation falling faster than expected. Then he points out.
Renters will also see prices rise, but only “outright owners” of their homes will see a “significant increase in living standards.”
Mr Bell added that the National Insurance cut scheduled for January 6 “will not last long” as the April tax hike has been cancelled.
“The net effect will be a tax cut for the top half of earners, and a tax increase (or the same) for the bottom half,” Bell said.
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Mr Nowak would say, “The more the Conservatives remain in power each month, the more households will be forced into debt.
“These untouchable billionaires are more focused on clinging to power than growing the economy and raising living standards again.
“Unless something changes, real wages will not recover to 2008 levels until 2028.
“The last 13 years of economic stagnation have brutally exposed working people to a cost of living crisis.”
