Latest Public Sector News

24.06.13

TUC warns of poverty for public sector families

Over 180,000 children with a parent working in the public sector will be pushed into poverty by 2015, new research from the TUC union suggests. The report comes amid fears the spending review will bring further cuts to public sector pay.

TUC looked at government tax and benefit changes compared to the system under the previous government, private sector wage changes based on OBR forecasts and the government’s public sector pay policy.

Families with at least one parent working in the public sector will have their average household income cut by £100 a week in real terms by 2015. Almost 900,000 children will move into poverty, with 74% more children of families with one parent working in the public sector in poverty.

TUC general secretary, Frances O'Grady, said: “Ministers like to play divide and rule by trying to pit private sector workers against allegedly well-paid public sector workers. But these figures tell a very different story.

“The truth is that there are low and middle income workers in all parts of the economy and they are all are having a really tough time.”

But a government spokesperson said: “The universal credit will make 3 million households better off – the majority of these from the bottom two fifths of the income scale – and lift up to 250,000 children out of poverty.

“The public sector pay deal will help protect jobs and the quality of public services, while helping put the UK's public finances back on track.”

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