“OUTRAGEOUS” calls for pay restraint by Bank of England governor Andrew Bailey were attacked by unions as a “sick joke” today.

Workers are not responsible for the energy crisis, sluggish wage growth or the spiralling cost of living but are being asked to “pay the price,” they warned. 

Mr Bailey admitted it would be “painful” for people to accept that prices would increase faster than wages but claimed a “moderation of wage rises” was needed to prevent further inflation.

“I’m not saying don’t give yourself a pay rise. This is about the size of [any rise]. We do need to see restraint,” he added.

The governor was paid £575,538 in the year from March 1 2020, including his pension – more than 18 times the national full-time average of £31,285.

GMB general secretary Gary Smith said: “The nerve of Mr Bailey is scarcely credible.

“Telling the hard-working people who carried this country through the pandemic they don’t deserve a pay rise is outrageous.

“Isn’t the fact they kept working while many of us stayed safe at home enough for him?”

TUC head of economics Kate Bell slammed the “ill-founded” comments, stressing soaring energy prices – sparked by massive increases to wholesale gas prices – are pushing up inflation, not wage demands.

“Britain needs a pay rise,” she said. “The best way to achieve this is to give unions more access to workplaces to negotiate better pay and conditions.”

Unite general secretary Sharon Graham asked why people should “pay for the failures of the energy market and the total shambles of government policy?”

Tory deregulation of the sector has seen many smaller firms struggling to cope and going bust, heaping unexpected price rises on customers. 

Ms Graham said: “Why is it that every time there is a crisis, rich men ask ordinary people to pay for it?

“Let’s be clear – pay restraint is nothing more than a call for a national pay cut.”

Unison leader Christina McAnea urged ministers to deliver above-inflation public-sector pay rises or face “disastrous” consequences” as struggling staff “leave in their droves.”

Retail union Usdaw general secretary Paddy Lillis said that wage restraint is unaffordable for most workers. 

“We need clear action from government to tackle rising energy costs, increased taxes [and] the negative impacts of Brexit and Covid-19, which are all key drivers of inflation,” he demanded.

Downing Street offered a mild rebuke to Mr Bailey’s call, with Prime Minister Boris Johnson’s spokesperson saying: “We obviously want a high-growth economy and we want people’s wages to increase.”

The backlash came as the TUC warned its analysis of official figures suggests real wages are set to fall by £50 a month on average this year.

The figure is based on a 2 per cent decline in real earnings, with the Bank of England forecasting a consumer price index inflation rate of 5.75 per cent and median earnings growth at just 3.75 per cent. 

However, many economists predict price rises are on course to top 7 per cent in 2022, hitting workers with the biggest loss to their take-home income since 1990.

As well as skyrocketing energy bills, it also emerged today that average households can expect water bills to rise to almost £420 a year from April.

Costs will increase by 1.7 per cent in England and Wales, according to industry body Water UK, pushing up the typical annual bill by about £7 to £419 a year.

A national cost-of-living protest, organised by the People’s Assembly and Fuel Poverty Action alongside the DPAC and RS21 campaign groups, is set to take place in cities across Britain on Saturday February 12.

For more information visit www.thepeoplesassembly.org.uk