MILLIONS of workers are facing “financial ruin” unless the government steps in with a wages bailout, unions warned today.

The GMB said coronavirus shutdowns and job losses are poised to send family finances "to the wall," with millions already living hand to mouth.

As a result, the government is being urged to intervene to support wages to avoid a spiralling personal debt crisis.

The union said official figures showed that 11.5 million people have less than £100 in savings to fall back on and 9m often use credit to pay for food or essential bills.

Now the GMB is calling for the government to follow the lead of other countries in guaranteeing wages.

Sweden, Germany and Austria are already subsidising a shorter working week, with governments halving the costs with employers so that workers keep 90 per cent of their income, said the GMB.

Other measures have also been put in place in countries such as France, Norway and Denmark.

GMB general secretary Tim Roache said: “Unless the government urgently intervenes to underwrite wages, it risks turning a public-health crisis into a new personal-debt crisis for hundreds of thousands of families.

"We need a people's bailout. Ministers must not allow workers and their families to go to the wall.

"Imagine being on the breadline, unable to work and being told that the light at the end of the tunnel is actually thousands more in debt to pay off. It's just not right.

"Huge numbers of people were covering basic living costs on credit even before this crisis struck. Suddenly finding income dry up is already pushing people to the financial brink.

"Ministers need to guarantee wages and suspend rent and mortgage payments — not just roll them over to be paid later.

"This is crucial for living standards and people's mental health now, but also for the hope of economic recovery later."

Unite union assistant general secretary Steve Turner called on the government to ensure that manufacturing in Britain is "primed to leap out of the gate" once the virus has been defeated.

He added: "It should also go without saying that, with much of the industry shutting down, workers should not be left on reduced earnings, fearful of bills or bailiffs, shivering and struggling to cope.

"Ministers must take direction from the likes of Austria, Germany, the Netherlands and many other European countries and introduce direct, in-your-pocket wage subsidies as a priority.”