George Osborne ‘trapped kids in poverty and unable to afford essential goods’

GEORGE Osborne kept a ceiling on public sector pay - despite warnings kids could be caught in a poverty trap, official papers show.

The former Chancellor was cautioned by civil servants that the spending squeeze would hit low income families.

Internal documents show low-paid workers would struggle to afford “essential goods” and lead to a “negative impact” on family relationships.

Mr Osborne stuck with limited pay increases of 1 per cent for four years despite the advice from officials ahead of the 2015 Budget.

Records obtained by the GMB union after a Freedom of Information request shows take-home pay of public sector workers such as nurses and teachers was unlikely to keep up with inflation.

It said: “This could increase financial pressure on families of public sector workers which may have a negative impact on family relationships.

“This policy will make it more difficult for low-income families with children to access essential goods and will therefore make it harder for the Government to hit Child Poverty Act targets.”

But in the same budget Osborne did increase the national living wage of £7.20 an hour, rising to £9 by 2020 which replaced the £6.50 minimum wage.

GMB national secretary Rehana Azam said the document was a “mark of shame” for ministers.

She said: “The public sector pay pinch has had a devastating impact on our members for many years,” she said.

“Public sector workers have been forced to leave their homes, use food banks and many of our members are unable to fund basic necessities for their children such as an annual holiday.

“This damning document is a mark of shame on ministers who imposed years of real-terms pay cuts in the full knowledge that it would condemn families and children to poverty.”

Mr Osborne, now the boss at the London Evening Standard, said: “The Treasury advice was clear that introducing the living wage would help protect the low paid from necessary savings in public spending.

“Official data on wages over the last couple of years shows clearly that the protection worked and the wages of the lowest paid have risen fastest.”