Nicola Sturgeon has said she fears “the worst is yet to come” in the cost-of-living crisis.
Speaking at the Scottish Trades Union Congress (STUC) Congress in Aberdeen, the First Minister told trade unionists the rising cost of living was hitting the poorest in society hardest.
In recent months, rising inflation, along with an increase to national insurance contributions and the biggest spike in energy prices in living memory, has stoked fears of an impending crisis.
“What is being experienced right now, and I fear the worst is yet to come, is more severe than most of us have ever known in our entire lifetimes,” she said. “This crisis is hitting hardest those who are already most in need and it will push many people over the poverty line.
“No society that values fairness and basic decency should passively accept the poverty and misery this crisis is causing.”
The First Minister reiterated her opposition to the spring statement given by the Chancellor last month, where Rishi Sunak announced a 5p cut to fuel duty, the doubling of the Household Support Fund to £1bn and a plan to cut the basic rate of income tax from 20p to 19p by the end of the current parliament.
“Last month’s spring statement from the UK Government was, in my view, such a disappointment – it totally failed to address what is a growing and an increasingly acute emergency.”
But Sturgeon went on to say she recognised the responsibility the Scottish Government has to help.
“I accept and acknowledge without equivocation the big responsibility on the shoulders of me and the Scottish Government I lead – we have a duty, and it is a duty and a heavy responsibility to do all we can.
“We have done so and will continue to do so.”
A UK Government spokesperson said: “We understand that people are struggling with rising prices, and while we can’t shield everyone from the global challenges we face, we’re supporting British families to navigate the months ahead with a £22bn package of support this financial year.
“We are saving the typical employee over £330 a year by raising the National Insurance Contribution threshold and we have introduced the largest ever single increase in the National Living Wage, while lowering the Universal Credit taper rate to help people keep more of the money they earn.
“We are providing millions of households with up to £350 to help with rising energy bills and providing the Scottish Government with £290m as a result of the Council Tax rebate in England, on top of the record £41bn settlement at the Spending Review – the highest amount since devolution.”
Elsewhere at the event, STUC president Pat Rafferty said that “undervalued” public sector workers must be paid a real terms pay rise to help them through the cost-of-living crisis, adding that Glasgow City Council leaders should “get your act together” over unresolved equal pay disputes.
Some jobs, predominately held by women, were paid less per hour than roles typically held by men, despite being in the same pay grade.
A £500m settlement was agreed in 2019, however, unions said many staff were still being paid unfairly, leading to threats of new strikes if a deal was not reached.
Strike action by female council workers in Glasgow was cancelled earlier this month after unions agreed a deal with the city council.
Now Rafferty has told the city council to pay the public sector workers, who are the “back bone” of communities, immediately without further delays.
“Over the last decade, they have faced real terms pay cuts; they are undervalued, underpaid and under immense strain.
“They deserve a real terms pay rise and Glasgow City Council, you better get your act together – pay all outstanding pay claims without any further delays.”
New evidence by the trade union found that Scots wages are lower than the rest of the UK.
Despite more than half earning below £25,000 per year, council staff have faced a decade of real-term pay cuts, according to STUC.
Ahead of the council elections on 5 May, the organisation is calling for an increase in pay for council workers.
Further strike action could occur over pay disputes as members of the Scottish Secondary Teaching Association rejected a pay offer.
It is understood about 83% of members are prepared to strike if the dispute is not settled. The offer proposed a 1.22% increase from April last year and a further 1% rise from January 1 2022.
Rafferty, who is also the Scottish secretary of Unite the Union, said the cost-of-living crisis will push millions of families into poverty without a real terms pay increase.
“The cost-of-living crisis we are facing will, and is, causing despair for millions of people who will struggle to afford the huge increases in the price of food, fuel and energy bills as well as a hike to national insurance.”
He also called for a windfall tax to be imposed on energy bosses who are “reaping the benefits” of oil and gas cost increases.
First Minister Nicola Sturgeon said that the Scottish Government “maximises everything we can do to help with the cost of living crisis, including pay rises for public sector workers”.
“Our budget is constrained by decisions taken at Westminster,” she added.
The First Minister pointed to the increase for health workers, but said she wished “it could have been more”.
When asked if a lack of a pay rise could result in increased industrial action by unions and workers, the First Minister said: “I very much hope we can work with trade unions to avoid industrial action.
“While trade unions are there to stand up for their workers, I don’t think industrial action is in anybody’s interest.”
A Glasgow City Council spokesman said: “The council is committed to pay equality and addressing claims – and we are working with trades unions and others representing workers to do exactly that.”
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