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Big business told to give us a pay rise

Real wages keep falling as corporate giants sit on £500bn

Unite told corporate giants hoarding a £500 billion surplus to boost staff pay yesterday after inflation figures showed living costs continue to outstrip wages.

The union's demand for growing profits to be shared with workers came after inflation finally slithered below the Bank of England's 2 per cent target.

Monthly figures from the Office for National Statistics (ONS) showed inflation fell by 0.1 to 1.9 per cent between December and January.

Prime Minister David Cameron celebrated the sluggish movement on Twitter.

He wrote: "Today's fall in inflation is more evidence our long-term economic plan is working. We want to ensure a secure future for hard-working people."

Unite welcomed the slight fall in inflation but pointed out average wages remain at 0.9 per cent - half the rate at which prices for everyday goods are rising.

General secretary Len McCluskey said: "Wage costs are being held down by employers who are imposing pay freezes and pay cuts, using zero-hours contracts and relying on part-time workers who want full-time jobs.

"Thousands of people using food banks are in work but being paid poverty wages, while household bills are going through the roof.

"It takes a person on the national minimum wage, on average, 140 days to pay their gas bill."

He added that the private sector are sitting on a £500bn "cash mountain" and urged them to invest in new projects and give Britain's workforce an overdue pay rise.

The ONS measures inflation by tracking the prices of a "basket" of products and services every month.

Cut-price DVDs, furniture and alcohol and tobacco helped drive inflations down while the cost of hygiene products like toothbrushes and baby wipes went up.

TUC general secretary Frances O'Grady warned the slight fall "only tells half the story of Britain's living standards squeeze.

"Hard-pressed working people need far stronger pay rises before they can really feel the benefit of falling inflation," she added. "As it stands, wages are still trailing behind the rising cost of living."

Labour promised its plan to freeze energy bills, expand free childcare and build 200,000 homes would end Mr Cameron's cost of living crisis.

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