Government will push UK further towards recession if benefits are held below rising prices, warns TUC

With today’s GDP data showing a contraction of 0.3% for August, and ongoing steep falls in manufacturing, the TUC warns that the government will push the UK further towards recession if ministers disable the ‘automatic stabiliser’ of inflation-linked benefit increases and fail to get pay rising faster.

TUC General Secretary Frances O’Grady said:

“The government needs to boost the economy in a way that helps everyone – not just City bankers and big corporations.

“With inflation running at 10%, the government must come forward with a plan to get wages rising faster. And benefits like universal credit must be increased to keep up with rising prices too. Otherwise a deeper spending slump will push the UK further towards recession.”