The strike in England continues. This is the biggest strike wave in ten years and according to Rabobank economist Stefan Koopman, the strikers have a point. ‘Inflation in the UK was over ten per cent but wages in the public sector grew by only three per cent.’

That means the average UK resident will lose around seven per cent, according to Koopman. “And if you do that at the real income level, you’re back to the same level as in 2003. In other words, twenty years stuck.”

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According to Koopman, it’s a different story in the private sector, where wages are expected to rise. He stated that there was an average increase of about seven percent. “So everyone can feel that it’s not fair, and it’s a struggle.”

National Health Service

In fact, the situation in the UK is so bad that National Health Service employees have to go to food banks to get food. “These are working poor,” continued Koopman. ‘And you see that a lot in England. Even if you look at household savings, for example. If you take the average savings balance, it’s about £3 to £5,000 a year. It’s not a lot, so people don’t have a big buffer.’

The government stands firm

And there doesn’t appear to be much change from the British government, which appears to be holding up, according to correspondent Lia van Bekhoven. “Of course it depends on which group, but there is no negotiation when it comes to nursing staff,” he said. The reason, the government does not want to provide a series of wage increases that will encourage inflation.

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According to Van Bekhoven, this is due to a possible domino effect. “The fear is that if they serve one sector, other sectors will want it too,” he continued. “So there is no direct consultation, because what the unions want is simple: wage increases.”