The Price Squeeze

 

Between November and December 2010 prices rose at their fastest pace on record.

So states the ASDA Price Tracker website.

They go on to say:

“ The average UK household had £172 a week of discretionary income in December 2010, 4.5 per cent lower than a year earlier. The £8 a week fall compared to the same month a year earlier is the largest decline on record”.

All this against the back drop of a pay freeze in the civil service for those earning more than £21,000 a year with below inflation increases for everyone else. In other words we have seen a fall in real income in 2010 and we face the same in 2011.

This hidden squeeze has to be addressed by the Union. At the moment it appears to be trying to engineer a strike on pension when we face falling living standards and massive job cuts. The union has to re-orientate itself to address these issues.

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