TUC: Austerity left UK “hugely unprepared” for the Covid pandemic

  • NEW REPORT: TUC report shows how austerity led to unsafe staffing in public services, a broken safety net, and decimated workplace safety enforcement when the pandemic began
  • Austerity cost the nation dearly. The consequences were painful and tragic. The inquiry is our chance to learn from this” says the TUC

Austerity left the UK “hugely unprepared” for the Covid pandemic, according to a new report published by the TUC yesterday.

The report looks at four pillars of the country’s pandemic preparedness:

  1. Safe staffing levels in public services
  2. Public service capacity and resources
  3. A strong safety net through the social security system
  4. Robust health and safety protections at work

It finds that in each of these key areas, funding cuts reduced the country’s capacity to respond to the pandemic.

The report was published as the TUC held a joint press conference with the Covid-19 Bereaved Families for Justice about the lessons that must be learned through the inquiry, to save lives in the future.

Safe staffing levels in health and social care

The report details how safe staffing levels in health and social care were undermined by multiple years of pay caps and pay freezes, which impeded recruitment and increased staff turnover. This left both health and social care dangerously understaffed when the pandemic began:

  • Between 2010 and 2020, the number of nurses per capita in the UK grew by less than one per cent – despite demand for care rising by one-third. This is in stark contrast to the OECD average of nurses per capita rising by 10 per cent.
  • In 2019 the average NHS worker was earning £3,000 less in real terms than in 2010, with significant impacts on both recruitment and retention. 
  • In social care, the turnover rate for staff in England increased from 22 per cent in 2012/13 to 31.8 per cent in 2019/20.
  • When the pandemic hit, a quarter (24%) of social care workers in England were employed on zero-hours contracts, with the turnover rate higher among these workers.

Public services capacity and resources

Public services capacity was damaged by steep cuts to almost every part of the public sector.

In 2020 when the pandemic hit, spending per capita was still lower than in 2010 in social care, transport, housing, childcare, schools, higher education, police, fire services, and environmental protection.

This limited the ability of public services to contribute effectively to civil contingencies, and to continue essential activities effectively such children’s education.

  • Between 2010 and 2020, school funding per pupil was cut by 8.3% in England, 6.4% in Wales, 2.4% in Scotland and 10.5% in Northern Ireland.
  • Local authority core spending power was cut by a third between 2010 and 2020. Over the same period, demographic changes increased pressures – for instance, leading to higher referrals and more complex cases in both adult and children’s social care.  And new statutory duties in public health, social care and homelessness have stretched budgets further.
  • In 2019, capital investment in the UK health sector was 10% below 2010 levels. This forced NHS providers to close hospitals and delay equipment upgrades.

A strong safety net through the social security system

The social security safety net was damaged by direct cuts through benefit freezes, and by reforms that reduced entitlement to help and narrowed eligibility to fewer people.

Most of these benefits cuts were made in the period 2010 to 2016 when David Cameron was Prime Minister and George Osborne was Chancellor – both of whom are set to give evidence at the Covid inquiry.

The benefit cuts increased poverty levels. Living in poverty was associated with greater risks of exposure to Covid-19, and greater levels of vulnerability to more serious health consequences from being ill with Covid.

  • Since 2010, £14 billion has been cut from support to households through social security.
  • A family not in work has lost on average £1,160 a year in social security support since 2010, and a family in work has lost on average £460.
  • Disabled people have lost on average £1,200 of annual support, comparing 2021 with 2010.

Robust health and safety protections at work

The pandemic had a particular impact on workplaces – especially for key workers and those who could not work from home. But the enforcement of rules to keep workers safe at work was compromised by cuts that decimated public health and workplace safety regulators, and by confusion about who had responsibility to enforce the rules.

During the pandemic, when workplace risks multiplied, workplace inspections and enforcement notices fell to an all-time low, despite vast numbers of workplace-linked transmission caused by poor health and safety practice.

  • Funding for the Health and Safety Executive (HSE – the body responsible for workplace safety) in 2021/22 was 43% lower than in 2009/10 in real terms.
  • Staff numbers at the HSE have been cut by 35% since 2010.
  • The number of workplaces investigated by a safety inspector fell by 70% from 2010 to 2020.

TUC General Secretary Paul Nowak said: “To learn lessons and save future lives, we must take an unflinching look at the choices made by our leaders in the years before the pandemic.

“In the NHS and social care, funding cuts put staff levels in the danger zone. Cuts to social security pushed many more people below the poverty line, leaving them more vulnerable to infection. And cuts to health and safety left workers exposed to rogue employers who cut corners and put their lives at risk.

“Austerity cost the nation dearly. It left us hugely unprepared for the pandemic. And it left far too many workers unprotected. The consequences were painful and tragic.

“The inquiry is our chance to learn the lessons – and to understand why we have to rebuild our public services so that they are strong enough to protect us in a future crisis.”

Tough decisions: Scottish Government publishes financial strategy

Plan to grow economy, target spending and deliver progressive tax system

Economic growth, progressive taxation and spending plans that unapologetically target those in greatest need are at the heart of a financial strategy announced by Deputy First Minister Shona Robison.

The Medium-Term Financial Strategy outlines the approach to ensuring Scotland’s finances are on a sustainable footing and delivering high-quality public services in the face of high inflation. This includes:

  • growing the economy, including by delivering on ambitious commitments on childcare, seizing opportunities in areas where Scotland has a competitive advantage and supporting entrepreneurs, start-ups and scale-ups
  • taking tough decisions around spending, focusing on what is needed to achieve the missions of equality, opportunity and community
  • updating the tax strategy, with a new advisory group to be established this summer and chaired by the Deputy First Minister

The strategy details the tough choices required in challenging financial circumstances. Scottish Government estimates indicate that due to inflation, pay increases and the lack of further funding from the UK Government, current resource spending requirements could exceed funding by £1 billion in the next financial year, and by £1.9 billion in 2027-28.

The gap between capital spending commitments and funding could rise to 16% in 2025-26.

Ms Robison said: “We are steadfast in our commitment to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.

“But we must recognise that our current financial situation is among the most challenging since devolution, driven by the Covid pandemic, the war in Ukraine and the recent period of high inflation.

“Our funding remains largely based on decisions made by the UK Government, but they have failed to take the steps required to inflation-proof our budgets, and their decisions from Brexit to the disastrous mini-budget have made matters worse. This is creating substantial pressure on our public services, which we have no choice but to address.

“Today I have outlined our strategy for managing these challenges, doing all we can within our powers to ensure public finances are on a sustainable path. We will have a laser-like focus on spending, ensuring it targets equality, opportunity and community.

“We will generate economic growth, supporting businesses to invest and create new jobs while increasing tax revenues to invest in better public services. And we will continue to build the most progressive tax system in the UK, ensuring the burden of taxation is placed on those with the broadest shoulders.

“There can be no escaping the difficult choices ahead, but by following the plan outlined today we can provide a more prosperous and fairer future for the people of Scotland.”

Responding to the statement, STUC General Secretary Roz Foyer said: “The Cabinet Secretary for Finance is in a slightly better budgetary position than was predicted this time last year. However, she rightly points out that UK Government austerity and its manufactured cost-of-living crisis continue to hit Scotland hard.

“However, this is not an excuse for inaction. There is a worrying lack of ambition from the government ministers which cannot be condoned.

“Tax reform cannot be kicked down the road for another year. To protect services and pay, the Scottish Government must make good on the First Minister’s pledge to leave no stone unturned in seeking to raise additional income by rebalancing wealth. This means committing now to the policy changes required to introduce wealth and property taxes as the STUC has advocated.”

The Deputy First Minister’s statement to the Scottish Parliament

Letters: Austerity – Never Again!

Dear Editor

When the banks crashed through mismanagement and greed most were bailed out by the government, using public money to do so.

People were told that everyone was ‘in it together’.

But as we know from thise years, the government embarked onn what they called Austerity, in whih wages were frozen for years; prices were rising; major cuts were made in services of all kinds;unemployment and zero hours contracts grew.

The years of tremendous sacrifices made by the people in their lives have now been forgotten by employers and government alike.

In fact there is an indication that both of these are preparing the repeat of austerity, more severe than the last – and that will last much longer.

The people must not allow this to happen again!

The investors and financial institutions are intent to make everyone pay and once again decimate the lives of all people.

Tony Delahoy

 

What a waste: Holyrood spends £100 million to mitigate Tory welfare cuts

This year more than £100 million has been spent to mitigate the effects of UK Government austerity and this money could have been better spent on more anti-poverty measures, Social Security Secretary Shirley-Anne Somerville has said. Continue reading What a waste: Holyrood spends £100 million to mitigate Tory welfare cuts

New TUC report reveals the damage from a decade of austerity

  • Every developed nation that cut public spending since the financial crisis has experienced slower GDP growth
  • Wage growth has halved across OECD nations since the financial crisis

Every developed nation that cut government spending since the financial crisis has experienced slower GDP growth, according to a new TUC report.

The report looks at the impact of austerity across the OECD. It finds that the rate of GDP growth reduced in all 32 countries where government spending was cut

The only OECD countries with higher GDP growth are Germany and Japan, which both increased government spending after the crash.

Living standards

The report also reveals the devastating impact of austerity on living standards.

Wage growth has halved across OECD nations since the crash, with annual real pay growth averaging less than 1% for two-thirds of countries.

UK workers have been among the worst affected. Only Lithuania, Estonia, Greece and Latvia have experienced a greater reduction in real wage growth than Britain since the financial crisis.

Over this period the number of people in working households living in poverty in Britain has increased from 5 million to 8 million.

Commenting on the report, TUC General Secretary Frances O’Grady  said:  “Austerity was always a political choice. It’s now clear how much harm it caused, holding down economic growth and living standards.

“We can’t afford to make the same mistake again. If there’s another crisis, the government’s response must be to focus on public investment to make our economy stronger.

“But we shouldn’t wait for the worst to happen. The best way to deal with a recession is to prevent it. There are already warning signs, so the government should act now by boosting public sector pay and spending on public services.”

Recommendations from the report:

  • An independent review of how the Office for Budget Responsibility and Bank of England judge the impact of government spending on the economy.
  • Urgent fiscal support for aggregate demand through public sector pay increases and spending on services.
  • Fast-track increases to UK public infrastructure spending to least the OECD average of 3.5% GDP.
  • Increased expenditure should initially be financed by borrowing rather than increased taxation. This will strengthen the economy, leading to higher revenues that can support spending increases longer term.
  • Fiscal policy should be part of a wider plan to deliver sustainable growth across the UK, including investment in the public services families rely on, the skills workers need for the future, a just transition to net zero carbon emissions, and giving workers a real voice at work.

Crisis? What crisis?: More than 336,000 households aided through Scottish Welfare Fund

Scottish Welfare Fund annual spend hits £35 million.

poverty family JRF

People in crisis made more than 165,000 successful applications to the Scottish Welfare Fund in the last financial year, according to the latest statistics.

The Fund paid out £35 million, including £10.4 million in Crisis Grants to people in financial emergency, such as those struggling on low incomes or benefits  – a 14% increase on 2017-18. The money helped people with essentials such as food, heating costs and household items.

A further £24.8 million in Community Care Grants helped those facing extreme financial pressures with one-off costs for purchases including beds, washing machines and cookers.

The Scottish Welfare Fund is part of an annual package of over £125 million to mitigate against the impact of UK Government welfare cuts. Since its launch in April 2013, the Fund has paid out more than £200 million to support over 336,000 households, with a third of recipients being families with children.

Social Security Secretary Shirley-Anne Somerville said: “We would much rather these resources were invested in anti-poverty measures than protecting our people from another government’s cuts – a positon the UN Special Rapporteur on Poverty recently described as ‘outrageous and unsustainable’.

“The fact that so many households in Scotland are in need of emergency financial help is appalling, and a sad indictment of the UK Government’s record on austerity and welfare changes.

“As their welfare cuts continue to cause harm and damage, we continue to do our best to mitigate against them and provide financial support to low income families and carers through new social security benefits.”

In the UN Special Rapporteur on Poverty report published earlier this year, Professor Philip Alston praised Scotland’s “ambitious” schemes for addressing poverty, including the Fairer Scotland Action Plan and the Tackling Child Poverty Delivery Plan.

He also noted Scotland’s “promising social security system, guided by the principles of dignity and social security as a human right, and co-designed with claimants on the basis of evidence”

The Scottish Government’s response to the Special Rapporteur’s report shows UK Government welfare cuts have increased the risk of deprivation for low-income families across Scotland

The Scottish Welfare Fund statistics

 can be found on the Scottish Government’s website

UK Government ideology responsible for systemic poverty, says UN expert

Damning indictment of Tory policies

The UK Government’s policies have led to the ‘systematic immiseration of millions across Great Britain’, the UN’s expert on poverty and human rights said in a report released on Wednesday. UN Rapporteur Philip Alston has called for a new vision that embodies compassion to end the unnecessary hardship.   Continue reading UK Government ideology responsible for systemic poverty, says UN expert

Austerity: Council spending has fallen by half since 2010

  • People living in cities shouldered the equivalent of £386 worth of cuts per head since 2009/10, compared to £172 per person elsewhere
  • Liverpool and Barnsley worst hit by cuts to local government budgets
  • 50% of cities spend more than half their budget on social care
  • The Spending Review must mark the end of local government austerity

Cities have borne nearly three-quarters (74%) of all real-terms local government funding cuts in the last decade despite being home to just 54% of the population, according to Centre for Cities’ annual Cities Outlook 2019 report – the Centre’s annual health check on UK city economies. Continue reading Austerity: Council spending has fallen by half since 2010

Scottish Government commits £125 million to combat UK austerity

Scottish Ministers are on course to invest over £125 million in 2018-19 to mitigate against the worst impact of UK Government welfare reforms and to protect those on low incomes. Continue reading Scottish Government commits £125 million to combat UK austerity