Trades Union Congress general secretary Paul Nowak is set to warn that the UK “cannot afford the Tories” in his 2024 annual address.
by Tim Baker, political reporter
Friday 29 December 2023 at 06:14, United Kingdom
Households face a “debt time bomb” next year, according to analysis by a trade union group.
the Trade Union Congress – which includes the likes of GMB, Unite and Unison – unsecured debt is expected to rise by £1,400 in 2024.
This includes borrowing that does not have property as collateral, such as loans, credit cards, and hire-purchase agreements, but not mortgages. The TUC also excluded student loans from its forecasts.
Tax cuts, a new Prime Minister and the return of Nigel Farage – what 2024 could hold.
According to the TUC, unsecured religion It is set to rise per household from £13,361 in 2023 to £14,792 next year – an increase of almost 11%.
By 2026, this figure could reach £17,719, according to the group’s forecasts – the previous record was £16,800 in 2007.
They calculate their figures using a combination of ONS data for current figures, and Office for Budget Responsibility projections for the future.
The TUC says workers were left “brutally exposed to… Cost of living crisis” – adding that “if something does not change”, real wages will not recover to pre-2008 levels until 2028.
At this point, each household’s unsecured debt could be up to £19,117.
If wage growth had kept up with pre-financial crisis levels, the average worker would be £14,800 better off, according to the TUC.
The union group’s general secretary, Paul Novak, is set to warn the UK that it “cannot afford the Conservatives” in his annual speech for 2024 – when an election will be called.
TUC demands government National Insurance cut off “It will be more than wiped out” by a lack of growth in living standards coupled with rising debt.
A greater than expected decline in inflation
Meanwhile, Torsten Bell, head of the Decision Foundation think tank, warned that next year will be “chaotic”.
He points out that although inflation is falling faster than expected, rising interest rates mean around 1.5 million mortgage holders will have to pay an extra £1,800 a year.
Renters will also see prices rise, with only “direct owners” of their homes seeing “strong growth in living standards”.
Bell adds that the National Insurance cut – scheduled for January 6 – “will not continue”, as the rise in tax thresholds in April was cancelled.
“The net effect would be to reduce taxes on the top half of income earners, and increase taxes (or no change) on the bottom half,” Bell said.
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Mr Nowak will say: “Every month the Conservatives remain in power, more families will be pushed into debt.
“This group of isolated millionaires is more focused on clinging to power than on growing our economy and raising living standards again.
“If something does not change, real wages will not recover to 2008 levels until 2028.”
“These 13 years of economic recession have left workers brutally exposed to the cost of living crisis.”