UK’s Unite warns about income squeeze

According to an independent research by the union on the value of UK wages, over two-thirds (67%) of British workers say they need to borrow money each month to pay for basics of their lives until the next pay.

The union, which has 1.5million members, also warned that young people are hardest hit by the incomes squeeze as it was found that 40 percent of them need financial help in order to keep a roof over their heads.

“This government’s policies are not just crushing our economy, they are hobbling our nation’s ability to work its way out of recession,” said Unite general secretary, Len McCluskey.

“Over and over again this government is trampling all over ordinary people and squashing hope. We need to stand up and say an emphatic ‘no’; this is not what we voted for.”

Meanwhile, earlier this week, the Office for National Statistics said the British household income per head has dropped by 0.6 percent in the 2012 first quarter, compared to the 2011 fourth quarter, and gross household saving has fallen by 7 percent from £18.3m to £17m during the same period.

However, speaking to Sky News on August 2, British Prime Minister David Cameron backed Chancellor George Osborne, insisting that he would be moved on in any cabinet reshuffle as he was “doing an excellent job.”

Furthermore, despite disappointing growth figures last month and growing pressure for further help with the UK’s ailing economy, the Bank of England policymakers kept interest rates on hold at 0.5 percent and maintained its quantitative easing scheme at £375billion in August 2012.

SSM/SS/HE

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