THE TUC has demanded the government “do everything in its power” to shield families from soaring bills as official figures showed the British economy contracted by 0.1 per cent in April.

A fall in gross domestic product announced by the Office for National Statistics data today was blamed on rising energy prices due to the US war in Iran, bucking improvements seen before the start of the conflict.

TUC general secretary Paul Nowak highlighted the “knock-on effect on living standards and growth” the war is having on working people in Britain who are “on the brink.”

“Before Trump’s illegal war the economy was starting to get back on track,” he said.

“But global events are having a knock-on effect on living standards and growth. Families and businesses are still battling against an unending cost-of-living crisis, with rising petrol, energy and mortgage costs heaping pressure on budgets.”

Mr Nowak noted the incoming increase of the Ofgem energy price cap on July 1, which will see an average increase of 13.5 per cent in bills.

He said: “Many will be fearing the weeks ahead, when the new price cap will send energy bills spiralling again.

“And challenges look set to continue this autumn as more businesses come off fixed energy deals and food prices rise.  

“The government must get ahead and do everything in its power to shield families through this crisis.”

In its statement, the TUC called “for an emergency social tariff which will cut bills for two thirds of households — funded by an increase in windfall tax on banks.

“The tariff would reduce inflation and put more money back in people’s pockets.”

The official figures support concerns from experts that the British economy could shrink in the second quarter of this year, as Chancellor Rachel Reeves is now arguing the economy was strong before US President Donald Trump launched the war.

Ms Reeves claimed: “This is not a war we wanted or joined, but one that will have an impact at home.

“The choices I have made as chancellor mean our economy is in a stronger position to deal with the costs of the war, and we are getting on with the job of building a stronger and more secure economy.”