The biggest wave of industrial action to hit the UK in decades is grinding the country to a halt as public service workers protest against plummeting living standards and skyrocketing rates of inflation.

Key points:

• Just three weeks into the year, transport staff, teachers, nurses and paramedics have all walked off the job
• Prime Minister Rishi Sunak says his government can't afford to meet the pay demands of every industry taking action
• Further industrial action is planned for February and March

Rail workers across the country walked off the job for much of December and the beginning of January, shutting down around half of the UK's rail lines in a demand for higher pay as soaring inflation pushes down living standards.

Further strikes are also planned for February as resolution talks stall.

Bus drivers, too, shut down operations through December and January.

At the picket line outside Walworth bus depot in London, strikers told the ABC stagnant wages meant they were having to use their savings for everyday expenses.

"Every driver is struggling to pay every bill," said Jim, one of the bus drivers striking last week.

"The cost of living crisis has really affected everybody and we're all banking into the savings and we're all getting into debt.

Transport workers are not the only ones taking industrial action – the UK is widely accepted to be in the grips of an industrial relations crisis.

Health workers walked off the job in December and January and mail staff ceased operations in the lead-up to Christmas.

Teachers and other public sector workers, including border force staff, are also due to walk out in February over pay disputes.

The UK government maintains its hands are tied – it says a pay rise over inflation for every worker paid by the public purse would cost taxpayers 28 billion pounds ($50 billion), though this figure is disputed by economists.

The government also says increasing public pay packets above inflation risks worsening it further, however, economic opinions vary on the actual size of the impact.

Inflation in the UK hit a 41-year high of 11.1 per cent in October before coming down slightly to 10.5 per cent in December.

Why are living standards in the UK on the decline?

Inflation is the driving factor for more and more Britons struggling to make ends meet.

Energy and food prices have skyrocketed, partly brought upon by supply interruptions and sanctions following Russia’s war in Ukraine.

There has also been a spike in demand as economies restart following pandemic lockdowns.

Changes in the UK's trade relationship with the EU following Brexit has also led to higher prices.

According to the UK's National Office of Statistics, the price of everyday groceries has risen dramatically in the past year.

Milk prices have gone up 50 per cent, sugar up 43 per cent and staple pantry goods like bread and pasta up 16 per cent.

The average cost of rent across the UK has increased by 13 per cent since December 2021, according to analysis by letting website SpareRoom.