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This week, news came out that the Prime Minister hopes to “blunt calls for urgent action on the cost of living crisis by stressing that work is the best route out of poverty”.
It’s a popular line with this government. And it should be true – but sadly, it isn’t.
The majority of people in poverty (57 per cent, or 8.3 million people) live in a working household. That rises to 75 per cent of children in poverty.
The government’s record on this is atrocious. The number of people in in-work poverty has increased by 2 million since they came to power in 2010. It’s now at a record high, as is the number of children in poverty living in a house where at least one adult is in work.
If work is to be the best route out of poverty, the government must do more to get pay rising. In the meantime, it can’t use “work is the best route out of poverty” as a cop out for not properly addressing the cost of living crisis. We need proper action. Structural solutions – such as improved trade union rights, nationalisation of energy companies, and improvements to the benefits system – are needed alongside a windfall tax to fund urgent support to pay energy bills.
17-year pay squeeze
A key reason for the rise of in-work poverty is that work simply doesn’t pay enough. The government’s minimum wage, even the one it calls a living wage, isn’t a real living wage.
And we’re in the midst of a 17-year pay squeeze. Real pay is currently lower than it was in 2008, and the Office for Budget Responsibility forecasts that it won’t return to above 2008 levels until 2025. This 17-year pay squeeze is, by far, the longest in living memory.
The impact of this on workers’ pay packets has been massive. If real weekly wages had continued growing at the pre-2008 rate, they’d now be £111 per week higher than they are. By 2026, if forecasts are correct, this’ll be £164.
Impact of energy costs
It’s against this background that real pay is falling again. Inflation, at 9 per cent, is hitting wages hard. In March 2022, average weekly earnings fell by £16 per week (-2.7 per cent) compared to the same month a year ago. Public sector pay growth is the worst on record – falling by £30 per week (4.9 per cent) over the same period.
The news that the energy cap will rise by around £800 in October is incredibly worrying. If this does happen, it means that between December 2021 and December 2022, energy bills will have risen by a massive 119 per cent. In contrast, nominal wages will have risen by just 5.2 per cent. The standard benefits payment will have risen by just 3.1 per cent. This means that energy bills are set to grow 23 times faster than wages and 38 times faster than benefits this year.
Insecure work
On top of this, work is too often insecure. 3.6 million people are in insecure work, whether that’s zero-hours contracts, agency work, casual work, or low-paid self employment. The government has repeatedly broken its promise to introduce an employment bill that would tackle insecure work.
The benefits system
Pushing work as the route out of poverty is also often the government’s way of refusing to improve the welfare system. decent work and social security must go hand in hand, not be seen as alternatives.
Since it came to power, the government has repeatedly cut benefits payments in real terms. The real value of the standard benefits payment has fallen by £51 per month since 2010.
As set out above, in the face of massive rises in energy bills, the government has made real term cuts to benefits payments. When the price cap rises again in October, energy bills will be £1,523 per year higher than they were a year before. The standard benefits payment will only be £121 per year higher.
A common proposal around benefits is to bring forward the increase in benefits and pensions that would be expected in April 2023/24 to autumn of this year. For example, if inflation hit 10 per cent in September of this year (September is the reference month for benefit uprating), rather than waiting to increase benefits in April, they could be increased in October, and then maintained at that level from April onwards.
But this would increase benefits by around £7.70 a week, meaning it wouldn’t even go close to making up for cutting the £20 uplift.
Like the standard benefits payments, pensions also went up by just 3.1 per cent in April this year. Government made an active decision not to maintain the triple-lock – which would have seen pensions rise by around 8 per cent in line with the wage figures last autumn. This will cost pensioners almost £500 across the year.
Good, well-paid work is a route out of poverty
The current government has a proclivity towards badly funded temporary schemes and half-baked novelty ideas, which has again become clear during the current crisis. If it’s serious about tackling the cost of living crisis, we needed proper solutions to support people right now, alongside structural changes to fix these problems in the long term.
It’s not enough to just say that work is a route out of poverty. The reality is that too much work is low-paid and insecure. If government wants work to be a route out of poverty, it needs to ensure all work is well-paid and secure.
When it comes to pay, government should stop attacking trade unions, and instead improve trade union rights. Trade unions need stronger powers and better access to workplaces to drive up wages and conditions.
Fair pay deals need to be implemented in whole industries, negotiated with unions, and designed to get pay and productivity rising in every sector. We also need an emergency boost to the national minimum wage, as well as the long-awaited introduction of that employment bill they’ve been promising for ages to tackle insecure work.
To help people with energy costs, the government must recognise that energy is an essential public good that should come under public ownership, and implement an accelerated programme to insulate homes. To help people right now, we need a windfall tax to pay for additional grants to help with the costs of energy. With the energy cap rising by £1,523 in the space of just a year, this support will need to be substantial.
Government must also fix the benefits system. We want much more generous benefits payment (with the standard payment raised to £260 per week), alongside the scrapping of the cruel aspects of the system, such as the five-week wait, the benefits cap, the two-child limit and no recourse to public funds.
Work isn’t currently a route out of poverty, but it can be if government takes steps to ensure that all work is good, well-paid work.
The Prime Minister and Work and Pensions Secretary haveurged employers of all sizes to use the free recruitment support from their local Jobcentre to help fill the record number of vacancies in the jobs market and support the continued economic recovery by getting people into work.
Since January, DWP jobcentres across the UK have been ramping up operations with weekly jobs fairs – bringing employers in for face-to-face appointments and offering jobs on the spot to thousands of people.
Jobseekers walking away with roles have also secured an income, with those getting full time work set to be thousands of pounds better off than if they were on benefits. Helping households improve their finances and manage current cost of living pressures is a key priority for the government, with a £15 billion package announced on Thursday to support almost all of the eight million most vulnerable households across the UK.
On a visit to the North East of England, the Prime Minister and Work and Pensions Secretary Therese Coffey visited CityFibre, a new employer to the Way to Work campaign who have already benefitted from 200 new recruits from around the UK, hired through their local Jobcentres.
During the visit, they also met local employees who have secured skilled jobs as a result of the campaign and the support of their local Jobcentre.
Prime Minister Boris Johnson said: ““I was only ten years old when unemployment was last this low.
“But with a vast number of vacancies in the jobs market, it is more critical than ever to access the huge pool of untapped talent in towns and cities right across the country, which is why I am thrilled with the progress we have made with the Way to Work scheme.”
Secretary of State for Work and Pensions Thérèse Coffey said: “Unemployment is at its lowest since the 1970s with full time workers across the UK £6000 better off than if they were on benefits.
“And there are still vacancies to fill. That’s why our jobcentres are helping employers short circuit the recruitment process so they can get talent in fast.
“So, if you’re hiring, make the most of the help on offer from us.”
Greg Mesch, Chief Executive at CityFibre said: “CityFibre is rolling out the UK’s finest digital infrastructure to millions of homes and businesses nationwide. To build these new Full Fibre networks, we’re creating thousands of new network construction jobs and providing industry training to those that need it.
“We and our construction partners are working closely with DWP nationally, and local Jobcentres, by engaging with schemes like Way to Work. We look forward to increasing our involvement in the future.”
Alongside vital job support to help jobseekers secure an income, the new £15 billion cost of living support package will help almost all of the eight million most vulnerable households across the UK as they are set to receive help of at least £1,200 this year, including a new one-off £650 cost of living payment.
The government has also announced a £500 million increase for the Household Support Fund, delivered by local authorities, extending it to March 2023. This brings the total Household Support Fund to £1.5 billion.
To find out more about how DWP can help fill vacancies with quality candidates, please visit the Way to Work page on GOV.UK
A trickle of Tory MPs have submitted letters of no confidence in Boris Johnson following the publication of the Sue Gray report.
Unless that trickle becomes a flood over the weekend as MPs attend constituency surgeries it appears Johnson has got away with it. Again.
It was all smiles when The Prime Minister welcomed the Amir of Qatar, Sheikh Tamim bin Hamad al Thani, to Downing Street yesterday for discussions on driving economic growth and addressing global challenges together.
The meeting was surely a welcome distraction from the latest Partygate revelations and the imminent publication of the Sue Gray report into Downing Street lockdown parties, which is expected to be extremely critical of Boris Johnson’s conduct.
The UK and Qatar signed a new Strategic Investment Partnership (SIP) which will see Qatar invest up to £10 billion over the next five years in key sectors of the UK economy, including fintech, zero emissions vehicles, life sciences and cyber security. The investment is expected to create high-quality jobs in new industries across the country.
The Prime Minister and the Amir also had a wide-ranging discussion on geopolitical issues. They were united in their condemnation of Russia’s aggression in Ukraine and discussed issues of regional security, including relations with Iran.
Prime Minister Boris Johnson said: “Today’s announcement of up to £10bn in new investment from our Qatari friends is another vote of confidence in the UK’s brilliant businesses and cutting-edge industry.
“The new UK-Qatar Strategic Investment Partnership will create quality job opportunities across the country in key sectors, delivering on our vision of economic growth through trade and investment.
“Qatar is a valued partner for the UK, supported by Sheikh Tamim bin Hamad’s leadership. We had a rich discussion on the issues that matter to both of our countries, including boosting the economy, ensuring regional stability and improving energy security following Russia’s appalling invasion of Ukraine.”
UK-Qatar trade was worth £4.8 billion last year and Qatari investment in the UK economy is already estimated to be worth over £40 billion, supporting jobs and growth across the country.
Minister for Investment Lord Grimstone said: “It is excellent news that Qatar is targeting up to £10 billion investment into the UK through our new Strategic Investment Partnership.
“Not only will it boost local economies and support jobs, but it supports our green economy and decarbonisation – crucial in meeting our Net Zero targets. It also strengthens our relationship with Qatar ahead of our UK-Gulf Cooperation Council trade negotiations.”
Business Secretary Kwasi Kwarteng also signed an MoU on energy cooperation with Qatar’s Minister of State for Energy Affairs at Downing Street. Qatar is a major energy supplier for the UK, providing 40% of our liquefied natural gas – the new MoU commits us to work together to boost innovation and collaboration, supporting the security of global energy supplies.
UK Secretary of State for Business and Energy, Kwasi Kwarteng, said: “I am delighted to further the UK’s energy cooperation with the State of Qatar as we work to stabilise international energy markets and boost energy security in the context of Russia’s illegal invasion of Ukraine.
“Qatar is already a valued trading partner, recently investing in the future of British low-carbon nuclear technology through the Rolls Royce consortium developing small modular reactors. Today’s meeting will deepen our relationship even further, reinforcing the UK’s energy security and delivering cleaner and affordable energy in the years ahead.”
The Prime Minister and Amir discussed the upcoming 2022 Qatar World Cup this winter, and the UK committed significant new military and counter-terrorism support for the safe running of the event.
A joint UK-Qatar Typhoon Squadron will provide additional air security, and the Ministry of Defence with advanced venue search training and operational planning support.
The Prime Minister also confirmed that the UK will ensure Qatari nationals can access the UK’s new Electronic Travel Authorisation system from early 2023, facilitating easier travel for business visitors and tourists.
A FLAGBEARER for Scotland’s hospitality industry has cooked up one of the most exciting benefits packages available, in a bid to continue to grow its workforce beyond record levels.
Containing a holiday package worth £2000 plus a further £1000 in cash bonuses, the rewards await new full-time chefs and full-time hospitality team members joining one of Scotland’s busiest conference and events businesses.
To cut through the competitive jobs market, Surgeons Quarter is launching its ‘Work Hard Play Hard’ recruitment campaign in a bid to be the employer of choice in the sector.
The Living Wage accredited organisation will provide the cash perk in the form of a £500 signing on bonus, along with a £500 end of probation reward, alongside the holiday perk after completing 12 months service. In addition, existing staff in these roles are being offered comparable benefits.
As the commercial arm for the Royal College of Surgeons of Edinburgh, Surgeons Quarter has recently expanded to beyond 150 staff, with demand for its conference, events and hotel soaring as restrictions ease.
Scott Mitchell, Managing Director of Surgeons Quarter, said: “Our Work Hard Play Hard scheme offers extraordinary bonuses that we hope prospective recruits will jump at the chance of.
“Our jam-packed year of events has meant our requirement for staff has risen to new heights and we are striving to become the employer of choice as the sector booms.
“Like the majority of other hospitality firms, we faced the challenge of a skills shortage after the setbacks of the pandemic and Brexit. It is so exciting, now that we are back up and thriving, to be able to provide our recruits with this fantastic and rare opportunity.”
At the beginning of the year, Surgeons Quarter set a target of increasing staff numbers by 70% and has since seen its payroll top 150 people as demand for in-person meetings and events at its prestigious venues surpass pre-Covid levels.
Its latest recruitment scheme aims to continue building these numbers and the firm is still looking to hire hospitality team members and a number of chef roles, including senior sous, junior sous and banqueting chefs.
For full time chefs joining Surgeons Quarter the organisation is uniquely placed to provide six months on site residential accommodation to help people relocate their career to the city.
Scott added: “It was really important that we were not only providing our newest recruits with financial bonuses, but that our loyal and current staff members were also reaping the well-deserved rewards.
In addition to the ‘Work Hard Play Hard’ scheme Surgeons Quarter offers an enhanced employer contribution pension plan at 7.5%. The company also aims to improve mental health by providing access to employee assistance programme, 24/7, 365 days a year as well as complimentary use of their onsite SQ Gym.
Furthermore, the organisation provides access to discounted staff rates in hotels within the UK and globally plus a 30% staff discount is offered on food and beverage in all SQ outlets.
“As we enter this busy year and experience the events sector spring back to life, we know that all of our employees will be working hard and we want them to know that this will be rightly recognised.”
Surgeons Quarter promotes, sells and manages all commercial activities held within the RCSEd campus. All profits support the charitable aims of the College which are education, assessment and advancement in patient outcomes worldwide.
In addition to its four historic event venues, Surgeons Quarter also manages the 129 bedroom Ten Hill Place Hotel, high-street café 1505 and Surgeons Quarter Travel Agency.
For anyone interested in joining the dynamic and award-winning Surgeons Quarter team, please email recruiment@surgeonsquarter.com
For more information on events, conferences and meeting space at Surgeons Quarter visit: https://www.surgeonsquarter.com/conferences-meetings/
NATIONAL STRIKE ‘VERY MUCH ON THE TABLE’
PCS has warned of the consequences for everyone who relies on public services of Boris Johnson’s plans to cut up to 91,000 civil service jobs to tackle the cost-of-living crisis.
It is understood the prime minister wants to see civil service staffing levels cut to 2016 levels.
PCS General Secretary Mark Serwotka condemned the plans and said: “Cuts have consequences.
Not just on those whose jobs are being sacrificed to throw red meat to the dwindling number of Conservative voters, but on everyone who relies on the services our members provide.
“The government complains about longer delays for passports and driving licences at the same time as sacking the people who are working so hard to clear the backlog.
“He has chosen to cause our cost-of-living crisis and is desperate to point the blame somewhere – and he has chosen to point the finger at hard working PCS members who kept the country running throughout the pandemic.
“Our members will not be the scapegoats for a failing government. We have our conference in 10 days’ time: taking national strike action is very much on the table.”
Young people struggling to access employment will be supported by an additional £4 million through the Young Person’s Guarantee.
The funding will help young people impacted most by the pandemic, including those who are care-experienced and those experiencing mental health issues.
Three programmes will share the £4 million, which will connect people with employers, training and volunteering opportunities.
Minister for Youth Employment and Training Jamie Hepburn said: “We want all of our young people to succeed, no matter their background or circumstances. Our aim is to ensure those seeking work have access to valuable support and opportunities for years to come.
“We know that many young people may face additional barriers to successfully gaining permanent work and the uncertainty caused by the pandemic combined with the cost of living crisis has made this more challenging. By connecting young people seeking work directly with employers we can offer them potentially life changing opportunities.
“This additional support is on top of £15 million already allocated to local authorities through the Young Person’s Guarantee for the current year and will build on our strong record of tackling youth unemployment.”
May Day is unique. It’s the day in the year when we celebrate the bonds that bring us together as workers and trade unionists. And the fundamental message of May Day – friendship between workers of all backgrounds and nationalities – resonates more strongly than ever before (writes TUC General Secretary FRANCES O’GRADY).
This year, I’m proud to be speaking at the Chesterfield May Day rally, organised by the brilliant local trades council. And I’ll be arguing that even amidst these tough times, by sticking together and organising together, working people can win together.
There’s never been more need for that unity and solidarity. The brutal war in Ukraine casts a terrible shadow. Tech change is transforming our economy and the jobs we do. And the climate emergency demands we get our act together on a just transition to net zero, with good, green, unionised jobs.
In Britain and right around the world, workers also face an intensifying cost-of-living crisis. Energy bills are now rising 14 times faster than wages. One in three parents with pre-schoolers spend over a third of their pay on childcare. And last week, the ONS found that a quarter of people are already struggling to make ends meet – and worse is on the horizon.
That’s why the TUC is demanding an Emergency Budget to boost workers’ incomes. From a real living wage and fair pay agreements to a decent rise for public sector workers, there’s plenty we can do. And action on the cost-of-living must include a windfall tax on the excess profits of the energy giants, alongside the equalisation of capital gains and income tax. It’s time to raise tax on wealth, not workers.
As workers struggle, the government is all over the place. Despite promising to upgrade our rights, ministers look set to delay the Employment Bill yet again.
For some reason, the Chancellor seems more concerned about defending legalised tax avoidance, such as non dom status, than real wages, benefits and living standards. And, as Partygate rumbles on, the PM is focused on saving on his own skin: the next “work-related” event he attends could be his own leaving do.
The recent scandal at P&O underlines why we need change. The no-notice sacking of 800 skilled seafarers, and their replacement with cheap agency labour, is gangster capitalism at its worst. I’ve been proud to speak at P&O rallies and take to the airwaves to demand the reinstatement of those workers – alongside tough action against P&O and parent firm DP World.
The TUC will always support workers taking action against injustice. Across the economy, from our railways to our universities, we’re seeing an upsurge in strikes as workers say: enough is enough. With our membership growing for each of the past four years, we are a movement on the front foot.
And on Saturday 18 June, trade unionists will be gathering in London for our national demonstration: We Demand Better. We’ll be demanding action on the cost of living, a decent pay rise for all, and a New Deal for working people. So spread the word among your friends, colleagues and members – book those coaches and trains – and let’s make this a real show of strength and unity.
Have a wonderful May Day – and solidarity to all.
Today (Sunday) is International Workers’ Day, an annual celebration of working people.
After two hard years, when many workers faced extraordinary challenges due to the pandemic, they now find themselves in the midst of a cost of living crisis.
The TUC is using today’s celebration to highlight the vital role unions play in helping their members gain fair pay rises through collective bargaining.
Unionised workers are paid on average five per cent more than other similar workers. This is equivalent to £1,285 a year based on the average wage.
TUC Deputy General Secretary Paul Nowak, who will speak at today’s May Day rally in Trafalgar Square,said: “International workers day should be a time to celebrate. And working people can be proud of how they have brought the nation through the pandemic.
“But they are now in another crisis. The cost of living is racing ahead of their pay. And our Conservative government is doing nothing to help them.
“Working people need the power of government on their side. We need an emergency budget to give direct support with surging bills. And ministers should give working people and their unions stronger powers to negotiate fair pay deals.
“Join us at our national march and rally on 18 June to demand better for working people. Better pay, better rights and a better voice at work through unions. Only stronger unions can deliver a new deal for working people. Whether it’s winning in the workplace, or influencing government, it’s unions that make the difference
“If you’re not in a unionised workplace get together with your workmates and join a union. If there are enough of you, your employer is legally required to sit down and negotiate a fair pay rise with you. But if you’re not in a union, you have little bargaining power. And you lose out – big time.”
Dear Editor
With the elections for Scotland’s local authorities happening on May 5th, it is important to emphasise the vital role councils play in helping blind and partally sighted people to live as independently and inclusively as possible.
People with a visual impairment are more likely to depend on services from their local council, for information that’s readily available in alternative formats, public transport that’s accessible, streets and thoroughfares that allow people to walk safely and without obstacles, education that allows every child to reach their full potential, and employment that’s informed by a better understanding of what those with sight loss can do.
Around 178,000 people are currently living with a significant degree of sight loss in Scotland, of whom over 4,000 are children and young people. Our ageing population and the increase in sight-theatening conditions such as diabetes means this number will, inevitably, grow.
Let’s make one positive legacy of the upheaval we’ve all been through a resolve to make sure we re-emerge as a society in which no one is left at the margins.
Our local authorities are absolutely key to this.
James Adams
Director, Royal National Institute of Blind People (RNIB) Scotland
12-14 Hillside Crescent, Edinburgh
With firms saying they are struggling to recruit in the face of record job vacancies, Nacro is calling for firms to hire those with criminal records to reduce reoffending and bolster the workforce.
Nacro chief executive Campbell Robb said: “We are overlooking one vital resource to address the country’s shortage of candidates: hiring prison leavers.
” Each month around 4,000 people leave prison, but only 14% are in employment six months later – yet employers who hire prison leavers often say prison leavers are harder working and more reliable workers.
“Alongside this, having work is a vital factor in reducing reoffending. Yet so many viable job candidates could be overlooked simply because they have a criminal record.
“The UK economy can no longer afford to ignore those leaving prison, we have a golden opportunity to reduce reoffending and staff shortages in one fell swoop.”
