MILLIONS of households will descend into further poverty and misery this winter after inflation hit a decade-long high, unions, campaigners and Labour warned today.

The Office for National Statistics (ONS) reported that inflation hit 4.2 per cent in October, the highest level for a decade and double the government’s target.

Gas prices have increased by 28.1 per cent and electricity prices by 18.8 per cent over the last 12 months, the ONS said.

At the same time wages have remained stagnant, said general union GMB.

Yet the government has continued its attacks on Britain’s poorest people by axing the £20-per-week uplift to universal credit, increasing workers’ National Insurance contributions and raising its cap on energy prices.

This week it also pressed on with plans to dump the “triple-lock” arrangement under which pensions are guaranteed to increase in line with inflation.

The National Pensioners’ Convention (NPC) said the government had betrayed pensioners by dumping its manifesto pledge to maintain the guarantee.

The Bank of England predicted that the situation will get worse, with inflation rising to 4.5 per cent this month and to about 5 per cent by April.

Labour said that the current level of inflation will leave working-class households at least £1,000 worse off per year.

The Trades Union Congress called for an immediate increase in the minimum wage to £10 an hour.

General secretary Frances O‘Grady said: “Many families will struggle to keep up with basic living costs, let alone Christmas celebrations. 

“Fuel and electricity costs are soaring, and the Chancellor’s cut to universal credit could not have come at a worse time.

“The government needs an urgent plan to get real wages rising.

“The Chancellor must fully fund real pay rises for public-sector workers. And the minimum wage should go up to £10 immediately.”

GMB national secretary Andy Prendergast said: “Rocketing fuel prices and stagnant wages have left people with a crushing cost-of-living crisis.”

He said government inaction on energy has “left millions of households in fuel poverty.” 

Public-sector union Unison said public service workers would be among the worst-hit.

General secretary Christina McAnea said: “The government has been passing off pay cuts for public service workers under the guise of wage rises.

“The three per cent increase for NHS staff is a pay cut in all but name. It doesn’t even keep pace with the cost of living and is no way to deal with the staffing crisis.

“Council and school staff have been offered less than half the rate of inflation and many public services are still enduring a pay freeze.

“Care is on its knees and the workers who provide it are on poverty wages unable to pay their spiralling bills.

“So much for the myth of levelling up and the desire for world-class public services.”

NPC general secretary Jan Shortt said that by axing the guaranteed pensions increase as prices soar, the government is “forcing our oldest and most vulnerable to choose whether to eat or heat their homes.

“There are currently 2.1 million pensioners living in poverty, an increase of 30 per cent since 2014,” she said.

“Yet the Prime Minister and his government have chosen to ignore this alarming figure and deprive pensioners of a few pounds a week so the Chancellor can hand out billions of corporate pounds in tax breaks to banks and big business.”

Shadow chancellor Rachel Reeves said the inflation rise will leave households more than £1,000 a year worse off and that Labour would cut tax on energy during winter.