CHANCELLOR Rachel Reeves must tackle energy bills at the Budget, unions have said, pointing out that wages remain just 2 per cent above 2008 levels.

Struggling households need more support, TUC general secretary Paul Nowak said, with the inadequate 1.1 per cent rise in real earnings published today the result of a “Tory hangover.”

The Annual Survey of Hours and Earnings (ASHE) revealed median weekly earnings for full-time employees rose by 5.3 per cent on the year to £766.60 in April, a 1.1 per cent increase in real terms using the consumer prices index including owner occupiers’ housing costs.

The largest growth was in caring, leisure and other service occupations, showing a 7.1 per cent annual rise.

Mr Nowak said: “Working people are still paying the price from the hangover of Tory pay stagnation.

“Labour was straight out of the blocks boosting the pay packets of millions of the lowest-paid workers with an increase in the minimum wage. That was the right thing to do.

“And the Make Work Pay agenda will be vital in improving workers’ wages over the years ahead.

“But households need more support now. That’s why living standards must remain a priority at the Budget, starting with action on energy bills.”

The figures also revealed the gender pay gap would take 31 years to close at current rates of progress.

“We must do better,” said Mr Nowak, adding that the Employment Rights Bills can help.

However, with the government set to make employers publish action plans for tackling the gender pay gap, “it’s crucial that these plans are bold and robust to ensure they make a real difference to working women’s pay and progress,” he said.