Beautiful Virgin Islands

Sunday, Jul 12, 2026

Cost of living crisis: Britons cannot expect pay rises to keep up with inflation, Treasury warns

Cost of living crisis: Britons cannot expect pay rises to keep up with inflation, Treasury warns

Workers have lost almost £20,000 since 2008 because pay has not kept up with inflation, it has been claimed.

Britons cannot expect pay rises to keep up with the soaring cost of living, the government has warned.

Treasury Chief Secretary Simon Clarke has said matching salaries to inflation risked causing prices in the shops to surge even higher.

His intervention comes as more than 40,000 staff prepare for a three-day strike that will cripple large swathes of the UK's train network.

The RMT union has said it is "unacceptable for railway workers to either lose their jobs or face another year of a pay freeze" when inflation is at a 40-year high.


And in other developments, tens of thousands of people are expected to march on Saturday - calling on the government to do more to tackle the cost-of-living crisis.

The protest has been organised by the TUC union, which claims workers have lost almost £20,000 since 2008 because pay has not kept up with inflation.

Mr Clarke was quoted by The Daily Telegraph as warning that Britons cannot have "unrealistic expectations around pay" - adding steep wage increases would exacerbate the crisis.

He told the newspaper: "We have to be very careful at this point about preventing inflation from becoming a self-fulfilling prophecy."


Teachers are reportedly planning to march en masse to demand better pay and conditions.

Their union, the NASUWT, said teachers were at the sharp end of the cost-of-living crisis, with essential living expenses surging ahead of wages and the value of their pay plummeting by 19% over the past 12 years.

Eight million households will start receiving cost-of-living payments from 14 July. Low-income households on benefits will get £326 next month as part of a £21bn support package to help with soaring bills, which was announced by the government last month.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Following Massive Investor Demand: SK Hynix Raises 26.5 Billion Dollars on Nasdaq
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
After Four Years, and Under a Heavy Veil of Secrecy: King Charles Meets His Grandchildren, Harry and Meghan's Children
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Deep Purple Has Released Its Best Album in Decades
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Luxury bags take over the World Cup: style, status symbol, or just showing off?
×