"If earnings growth had been in line with the forecast made in June 2010 by the Office for Budgetary Responsibility (OBR) – the official watchdog for the government's fiscal policy – income tax receipts this year would be £176bn [$276 billion]," the statement published on the Union's website stated.
"But the Treasury is now expected to collect just £159bn [$250 billion] in 2014/15 – £17bn less than forecast," the statement added.
Despite families not being worse off than in 2010, the government's failure to drive wage-growth has left the public finances in "a mess," TUC's General Secretary Frances O'Gardy was quoted as saying in the statement.
The statement cautions that the government will be forced to make "deep" cuts to public services to compensate for the deficit, in turn damaging the economy.
"The [Treasury] Chancellor should use next week's Autumn Statement to invest in growth and to put a wages recovery at the top of the agenda," O'Gardy stated.
UK Chancellor George Osborne will deliver his annual Autumn Statement to parliament on December 3, which provides an update on the government's plans for the economy, based on the latest OBR forecasts.
The TUC is a federation of 54 unions, representing almost six million workers in Britain. It advocates policies and legislation on behalf of workers in the United Kingdom and is a member of international industrial relations bodies.
