Biggest UK fall in real wages for 100 years looms, warns TUC

Study shows pay rises could fall behind inflation by 8% later this year, an unprecedented drop in living standards

Pay rises could fall behind inflation by almost 8% later this year, marking the biggest fall in real wages for 100 years, according to analysis by the TUC.

The TUC said a prediction by the Bank of England that inflation would jump to 13% in the fourth quarter of this year at a time when wages were expected to increase by just 5.25% meant living standards would fall by an unprecedented 7.75%.