MINISTERS were accused of “scapegoating workers” for stubborn inflation today as unions highlighted the hypocrisy of calls for wage restraint when the pay packets of those in finance and business has ballooned.

Latest labour market data for the Office of National Statistics (ONS) also showed that unemployment unexpectedly rose from 3.8 per cent to 4 per cent in the last three months, while workers have seen an average real terms 1.7 per cent pay cut. 

The attack on workers’ pay is more intense in the public sector, where Tory pay policy has seen average real wages fall by 3.1 per cent over the last year.

The headline inflation figure is down to 8.7 per cent, but food price inflation remains over 18 per cent in a sector which has seen some of the lowest pay settlements in the British economy — despite companies such as Tesco making over £753 million in profit and doling-out over half-a-billion pounds worth of dividends to shareholders.

Tory Chancellor Jeremy Hunt described the statistics as evidence that “our jobs market is strong,” adding: “But we still have around one million job vacancies, pushing up inflation even further.”

His remarks did little to allay trade union concerns that workers — through subinflation pay deals, or higher interest rates — would carry the burden and shoulder the blame for inflation.

TUC general secretary Paul Nowak issued a stark warning as unemployment grows, prices rise, and real wages fall for the 19th month in a row.

“The government must stop scapegoating workers for its failures,” he said.

“Wages are not driving inflation — they are not even keeping up with it. 

“In the public sector and lower-paid private sector industries, pay is even further behind.  

“The Bank of England’s own data shows that nominal pay gains are being driven by the very highest earners. 

“Working families have suffered 15 years of falling living standards.

“Ministers shouldn’t be forcing households to become even poorer. 

“We need a credible economic plan for boosting growth, jobs and pay. 

“Setting the UK on course for another damaging recession would be reckless.” 

Mr Nowak’s views were echoed by the STUC general secretary Roz Foyer, who also challenged the SNP-Green Scottish government.

She said: “It’s chronically hollow of well-remunerated Bank of England executives and politicians to be calling for wage restraint for ordinary workers while the pay packets of those in finance and business grows.

“These figures show once again that real-terms wages are not driving inflation — they are falling further behind.

“The economic course the UK government seem set upon is reckless and excepting a few at the top, will make us all poorer.

“It is concerning that pay in Scotland seems to be falling behind the rest of the UK.

“To that end, the Scottish government must immediately scrap its punitive public-sector pay strategy of 3.5 per cent and ensure workers get a decent pay rise that allows them to live with dignity in Scotland.”

Labour’s shadow work and pensions secretary Jonathan Ashworth said: “These figures are another dismal reflection of the Tories’ mismanagement of the economy over the last 13 years.

“Britain is the only G7 country with a lower employment rate than before the pandemic and real wages have fallen yet again — just as more and more families feel the devastating impact of the Tory mortgage bombshell.

“Labour’s mission is to secure the highest sustained growth in the G7.

“We will create good jobs across every part of the country and our welfare reform and job support plan will get Britain working again.”