Tag: TUC

Chancellor announces tax cuts to ease cost of living pressures in Scotland

‘A failure of courage, a failure of compassion and a failure of justice‘ – Peter Kelly, The Poverty Alliance

  • Chancellor announces Spring Statement tax cut for 2.4 million Scottish workers through rise in National Insurance thresholds – saving the typical employee over £330 a year.
  • Unveiling plans to give families further help with the cost of living, Rishi Sunak also slashes fuel duty on petrol and diesel by 5p per litre for the next 12 months.
  • Spring Statement also sets out measures to help businesses boost investment, innovation, and growth – including a £1,000 increase to Employment Allowance to benefit around half a million SMEs across the UK
  • The UK Government is providing an additional £45 million to the Scottish Government next year as a result of measures announced by the Chancellor today.

The Chancellor delivered a Spring Statement today that ‘puts billions of pounds back into the pockets of hard-working people in Scotland’– unveiling a series of tax cuts to ease the cost of living.  

Rishi Sunak announced that National Insurance starting thresholds will rise to £12,570 from July, meaning hard-working people across the UK will keep more of what they earn before they start paying personal taxes.

The cut, worth over £6 billion, will benefit 2.4 million working people in Scotland with a typical employee saving over £330 a year, whilst the typical self-employed person will save over £250. This means the UK now has some of the most generous tax thresholds in the world.

Mr Sunak also announced that fuel duty for petrol and diesel will be cut by 5p per litre from 6pm tonight (23 March) to help drivers across the UK with rising costs. Worth £2.4 billion, this is the biggest cut ever on all fuel duty rates and means a one-car family will now save on average £100.

As a result of a cut to the basic rate of income tax for savings income, taxpayers in Scotland will see benefits worth £3 million. As other income tax rates are devolved in Scotland, the Scottish Government’s funding is automatically increased as a result of this tax cut as set out in the agreed Fiscal Framework. This is initially worth £350 million in 2024-25.

The Chancellor also set out a series of measures to help businesses boost investment, innovation, and growth – including a £1,000 increase to Employment Allowance to benefit around half a million businesses.

As a result of measures in this Spring Statement the UK Government is providing the Scottish Government with an additional £45 million through the Barnett formula next year.

Chancellor Rishi Sunak said: “We’re slashing taxes for millions of hard-working people in Scotland, getting pounds in people’s pockets and helping pay cheques to stretch further – from July more than 2.4 million in Scotland will get a tax cut with the typical employee keeping £330 more each year.

“By cutting fuel duty, we’re making it cheaper for people in Scotland every time they go to the pump, which together with the freeze means people save £100 per car on average a year.

“We’re boosting small business growth by increasing the Employment Allowance – a tax cut worth up to £1,000 for thousands of businesses.”

To grow the world’s very best talent in AI, the UK Government will partner with industry and academia to create 1,000 new AI PhDs. The Government will invest £117m to create PHDs across the UK at Centres for Doctoral Training, building on the existing three sites in Scotland. This will train a new generation of AI researchers who will develop and use AI in areas such as healthcare, climate change and creating new commercial opportunities.

Delivering the statement, the Chancellor made clear that our sanctions against Russia will not be cost-free for people at home, and that Putin’s invasion presents a risk to our economic recovery – as it does to countries all around the world.

However, announcing the further measures to help people deal with rising costs, he said the extra support could only be provided because of the UK’s strong economy and the tough but responsible decisions taken to rebuild our fiscal resilience.

The immediate financial support for people and businesses comes as part of a wider tax plan announced by the Chancellor that will create better conditions for growth and will share proceeds from growth more fairly – ensuring people can keep more of what they earn.

Mr Sunak also announced that the Scottish Government will receive £41 million more funding as there will be an extra £500 million for the Household Support Fund, which doubles it’s total amount to £1 billion to support the most vulnerable families with their essentials over the coming months.

The Chancellor also reduced the VAT on energy saving materials such as solar panels, heating pumps and roof insulation from 5% to zero, helping families become more energy-efficient. 

This cost of living support comes on top of the measures that the Chancellor has already announced over the recent months to support families. This includes an over £9 billion energy bill rebate package, worth up to £350 each for around 28 million households, an increase to the National Living Wage, worth £1,000 for full time workers, and a cut to the Universal Credit taper, worth £1,000 for 2 million families. 

The Spring Statement also confirms that:

  • A new Efficiency and Value for Money Committee will be set up to cut £5.5 billion worth of cross-Whitehall waste – with savings to be used to fund public services.
  • £50 million new funding to create a Public Sector Fraud Authority to hold departments to account for their counter-fraud performance and to help them identify, seize and recover fraudsters money.
  • Local residents across the UK will benefit from a fresh set of infrastructure projects as we open the second round of the £4.8 billion Levelling Up Fund. It will continue to focus on regeneration, transport and cultural investments.

Chancellor’s statement ‘a failure of courage and compassion’, says Poverty Alliance

Reacting to today’s Spring Statement, Peter Kelly, director of the Poverty Alliance, said: “Government should be about compassion and justice, and making sure people are able to live as full a life as they can.

“The Chancellor said his Spring Statement today was all about security. Yet his plans show a failure to comprehend the situations being faced by households across the country, leaving them with insecure and falling incomes in the face of rising costs.

“Amid a rising tide of poverty, the Chancellor could have thrown a lifeline by increasing benefits in line with inflation and by scrapping the unjust benefit cap. Instead he has provided additional funding of only £500m to the Household Support Fund which, although welcome, will quickly be consumed by the rising cost of living for families on the lowest incomes.

“The increase in the National Insurance threshold has also been presented as a support to people living on low incomes. In reality two thirds of this effective tax cut will go to middle and higher income households.

“By ignoring the tidal wave of rising living costs that is pulling so many people into poverty, the Chancellor has made clear his priorities. His tax cutting agenda will generate positive headlines, but could see another 400,000 people across the UK swept into poverty.

“Ultimately, the Chancellor’s statement is a failure of courage, a failure of compassion, and a failure of justice.”

The UK Government has not delivered the support and help that families and businesses need today, according to Finance Secretary Kate Forbes.

Responding to the Spring Statement, Ms Forbes said the Chancellor failed to help thousands of worried households facing poverty as a result of soaring energy bills and a cost of living crisis.

In 2018/19, the Scottish Government introduced a more progressive approach to tax, including a 19% starter rate band below the basic rate, ensuring those who can afford to pay a little more do so.

Ms Forbes said: “The Spring Statement has failed to address the biggest challenges facing households today. With soaring energy bills and a cost of living crisis, the Chancellor has not used his Spring Statement sufficiently to provide lifeline support that could prevent households facing fuel poverty.

“The Scottish Government is providing a further £10 million to continue our Fuel Insecurity Fund into 2022-23, which supports people struggling with their energy bills. Most powers relating to the energy markets remain reserved and Scottish Ministers have repeatedly called for the UK Government to urgently take further action to support households – including a reduction in VAT on household energy bills and support for those on low incomes.

“We are doing all we can to tackle the cost of living crisis – including doubling the Scottish Child Payment from £10 per week per eligible child to £20 next month. The UK Government should have followed our lead and matched the 6% uprate on social security benefits which the Scottish Government is adding to eight of the benefits we deliver. The Chancellor failed to match that commitment which could have provided lifeline support to thousands of households.

“On taxation, we have already acted to introduce a 19% starter rate of income tax below the basic rate, in line with our commitment to progressive taxation, which makes Scotland the fairest taxed part of the UK. We will continue to take that approach when we set taxation policy in future budgets.”

In the midst of the biggest wages and bills crisis in living memory, Rishi Sunak’s Spring Statement has failed families who need help NOW, says the TUC.

He didn’t stand up for families. He didn’t take the opportunity to stand up to the bosses who’ve sacked hundreds of workers at P&O. And he didn’t set out a plan to get wages rising – leaving the average workers facing a wage cut of over £500 this year.

Last week, we set out what we needed to see from the Chancellor to get a spring statement that is fit for purpose.

We were looking for the Chancellor to:

  • Deliver an immediate boost to pay
  • Fund efforts towards a peaceful solution to the conflict in Ukraine
  • Take additional measures to support families in the UK with rising energy prices
  • Deliver the long-term changes needed for a high-wage, high skill, high productivity economy

Below we set out how the spring statement matched up to our tests and assess what it means for working people.

The Chancellor didn’t deliver an immediate boost to pay

Workers’ pay prospects from the statement don’t look good. The OBR forecasts real weekly wages to fall by £11p/w (2.0 per cent) in 2022, and fall again in 2023. This will put wages back below their 2008 levels (after a brief recovery in 2021), where they’ll stay until 2025. And even this contains some optimistic wage forecasts, with the OBR forecasting pay before inflation to rise by as much as 5.9 per in Q3 2022.

The OBR forecasts that the 2022-23 financial year will see the biggest fall in living standards since records began in 1956-57, explaining that the “failure of nominal earnings growth to keep pace with rising inflation” is a “key factor” in this.

It adds that the policy measures announced since October only “offset a third of the overall fall in living standards that would otherwise have occurred in the coming 12 months”.

But there was no action to tackle falling pay in the Chancellor’s statement: nothing on raising the minimum wage, or funding public sector pay rises, and no recognition that collective bargaining (and union presence) is the most sustainable way to get wages rising.

Measures to support families in the UK with rising energy prices and the cost of living were totally inadequate

The spring statement offers little good news for struggling families, especially those in receipt of benefits.

  • Benefits uprating

Worst of all there was no increase in the basic rate of benefits. As it stands, the standard allowance for Universal Credit and legacy benefits is set to rise by 3.1 per cent in April 2022. But this is far below the latest inflation figure (CPI is 6.2% in Feb 2022 and RPI is 8.2%), with inflation forecast to rise higher in the coming months.

This will leave those on benefits facing a real terms cut at a time when energy bills are rising by 54 per cent. The families who need the most help have been left totally out in the cold by the Chancellor today.

The decision not to cut benefits in real terms will particularly impact those who are unable to work. This reflects a wider ignorance of the equalities impact of the cost of living crisis.

We also didn’t see a reversal of the decision to suspend the state pension triple lock. The decision to abandon the pensions triple lock will cost pensioners almost £500 a year. Pensioners are particularly vulnerable to price hikes as they spend a higher percentage of their income on food and fuel.

  • Targeted support

The big new announcement for targeted support for low-income households was £500 million in additional funding for the Household Support Fund – a temporary discretionary fund run by local authorities. This scheme was set to end this month, and the initial funding was £500 million.

This extra money is worth less than £10 each to the six million families claiming Universal Credit – in the unlikely event they hear about it and are able to jump through the hoops needed to claim it. And contrast this £500 million to the £10 billion cut to benefit spending in 2022-23 as a result of not uprating benefits in line with inflation.

  • Income tax and national insurance threshold

Changes to tax cuts won’t help the families who need it most now. Raising the National Insurance threshold mostly benefits middle earners and, compared to increasing benefits payments, does little to help those with low income. This can be seen in the chart below, from the Resolution Foundation.

And promises of income tax cuts tomorrow do nothing for families facing cuts to their living standards now.

  • Childcare and sick pay

Recent TUC research found that 1 in 3 parents with pre-school children spend more than a third of their pay on childcare. And yet the spring statement made no mention of childcare –or even children.

And the Chancellor has missed another opportunity to raise sick pay and make it available to all. Living with Covid requires decent sick pay for all, yet we’re still waiting for government to take action on this.

  • VAT-free insulation and solar panels

Alongside this was the removal of the 5% Value Added Tax currently applied to building materials, like home insulation and solar panels. But this only benefits families who own a home and can afford to renovate it anyway. 

The Chancellor should’ve taken the opportunity to invest in home retrofits at scale. Improving the average UK home’s energy efficiency to band C would reduce the country’s gas demand by 15% and cut hundreds of pounds off fuel poor homes’ energy bills. A massive social homes retrofits programme, delivered by local authorities, could also create over a quarter million good jobs over two years. But here again the Chancellor failed to act.

  • Transport

The 5p cut on fuel duty does next to nothing to support those at the sharp end of the wages and bills crisis. Analysis by NEF estimates that a third of this tax cut will go directly to the richest 20% of households, while the poorest 20% will on average only receive £5 per month. To make transport truly affordable for everyone, Government should be expanding bus and rail services in the public sector.

The Chancellor didn’t talk about the long-term changes needed for a high-wage, high skill, high productivity economy

 We heard nothing on reforms to corporate governance, industrial strategy or expanding the public sector workforce to deliver the decent public services we need to level up.

The Chancellor did announce a review of the apprenticeship levy. We believe that any changes to the levy should focus on significantly increasing the number of high-quality apprenticeships and widening access to groups facing long-standing barriers. A review must not be an exercise in allowing employers to duck their responsibilities on apprenticeships.

And much more than this is urgently needed to tackle the shortfall in training, including increased government skills funding and new workplace training rights to expand opportunities for everyone to upskill and retrain.

The Chancellor didn’t stand up to the scandalous behaviour by bosses P&O

The Chancellor talked about security but did nothing to take on the bosses who take every measure to undermine their workers’ job security. He could’ve made it clear that no employer who treats workers with the contempt shown by P&O Ferries would receive a penny of public money until they reinstate their workforce, including by taking freeports contracts off DP World, the parent company of P&O.

Yet once again the Chancellor failed to mention the issues that matter to working people.

The government’s response to those fleeing conflict and war is inadequate

The Spring statement document outlines the £400m in humanitarian support the government has given to Ukraine, and says it has committed “to provide local authorities with £10,500 per person for support services, and between £3,000 and £8,755 per pupil for education services depending on phase of education, as well as £350 per month for sponsors for up to 12 months”.

But it’s clear that the government’s support for the people fleeing war and conflict is worse than inadequate. The Ukraine for Homes scheme is no substitute for a properly funded system that provides universal refugee protection.  And yesterday, the Government’s nationality and borders bill, passed a vital stage in the House of Commons, meaning that those fleeing conflict may find themselves treated as criminals and deported, instead of finding sanctuary.

The Chancellor let families down today.

Families are facing soaring bills at a time when their incomes have been squeezed by years of wage cuts and attacks on the social security system. The wages and bills crisis is a consequence of decisions taken by successive governments. Today the Chancellor chose to make the pain last for longer.

THERE WAS SOME PRAISE FOR SUNAK’S MINI-BUDGET, HOWEVER:

Simon Roberts, Chief Executive Officer, Sainsbury’s said: “We know our customers and colleagues are concerned about increases to the cost of living and at Sainsbury’s we are doing everything we can to support them.

“We really welcome today’s changes to fuel duty and national insurance. We are passing a 6 pence per litre cut in fuel across our forecourts from 6pm tonight as we know fuel costs are one of the biggest pressures everyone is facing right now.

“We were pleased to welcome the Chancellor to one of our stores today to discuss what we are doing to offer customers great value and to invest over £100 million in increasing pay for our colleagues with a new hourly rate of £10 per hour nationally and £11.05 in inner London.”

Michelle Ovens CBE, Founder, Small Business Saturday said: “Moves in today’s Spring Statement to increase the employment allowance, reduce fuel duty and raise the National Insurance threshold are welcome, and will go some way to help businesses deal with rising costs.

“In particular, It is good to see the immediacy of this rise in employment allowance.”

Martin McTague, Chair, Federation of Small Businesses, said: “We are very pleased to see the Chancellor adopting our top ask for this Spring Statement: uprating the Employment Allowance to help small employers with national insurance costs.

“We originally put forward the Employment Allowance as a targeted measure to help small firms, and it has now been expanded three times since its creation.

“Together with a cut to fuel duty, these measures will provide crucial breathing space for our embattled small employers. 

“This Spring Statement marks a good starting point, with welcome measures on business rates, net zero and energy investment taking effect next month.

“With steep inflation, energy bills increasing fast, without the same support in place as enjoyed by consumers, and hiring pressures landing hard on small firms, more of the right stuff will be needed in the autumn given this challenging backdrop.

“We’ve seen a VAT cut on net zero investments for households today, which is good for small firms involved in their installation.

“However, a high street shop or local bar cannot access the same support that consumers do when dealing with the same energy supplier, and they should have access to the same assistance to reduce energy use and support the move to net zero.

“We look forward to working with the Chancellor on his new tax plan. Achieving the new culture of enterprise vision he rightly aspires to, alongside levelling up aspirations, will mean putting community small firms and sole traders front and centre of reforms.

“That means taking more of them out of the business rates system, protecting SME R&D investment incentives and delivering on commitments to end an endemic late payment culture that destroys thousands of firms a year.”  

Alex Towers, Director of Policy and Public Affairs, BT Group said: “We welcome the Chancellor’s focus on tax reforms for business investment, given how central this is to UK infrastructure and growth.

“This is particularly important for BT Group as we make once in a generation investments to build the UK’s full fibre broadband and 5G networks. The existing super-deduction has already helped us to significantly increase and accelerate that investment.

“We agree that longer-term incentives are now needed, to support this country’s growth and competitiveness, and we will be keen to contribute evidence to aid the Government’s decision-making.”

Dr Clive Hickman OBE, Chief Executive, the Manufacturing Technology Centre said:  “We welcome the Spring Statement, which outlines concrete steps to ensure that the manufacturing sector remains competitive, sustainable, and resilient.

“The Government’s commitment to cut tax rates on business investment is important if the UK is to boost manufacturing productivity and create high-quality jobs. In addition, the reform to R&D tax credits is a very positive step that will enable the scheme to be more effective, better value for money, and more generous.

“These measures will be crucial to spur innovation and encourage investment across the country.”

Julian David, Chief Executive, TechUK said: “Rightly the majority of the Spring Statement focused on addressing the cost of living concerns resulting from the war in Ukraine and rising inflation. Along with this vital action, the Chancellor also outlined a welcome package of consultations and policy programmes aimed at boosting businesses investment.

“In our recent Digital Economy Monitor Survey UK tech companies said increasing support to invest in R&D would be their top ask of Government, with 76% saying R&D is important to their business operations in the UK.

“The proposals unveiled today to further expand R&D tax credits and consult on ways to maintain the tax deduction for capital expenditure have the potential to unlock more investment into UK innovation.

“However, to get this right the Government must ensure that the software and intangible assets that power modern business investment are kept in scope. Otherwise, the Government risks missing an opportunity to unleash the potential of tech led growth.”

Dom Hallas, Executive Director, COADEC said: “Better R&D tax credits would mean more innovation from startups and innovative companies.

“We’re delighted the Chancellor recommitted to expanding it to cover cloud and data costs – and look forward to discussing the many ways to improve the credit further.”

Irene Graham OBE, Chief Executive, ScaleUp Institute said: “In the face of increasing pressures of inflation and wider international uncertainties, it is very good to see the Spring Statement continues to recognise the importance of business growth and innovation.

“It reaffirms policies targeted towards R&D, people and skills, investment, and innovation including the new Innovation Challenge across central government departments. We will continue to work closely with the Government on the evolution and development of these policies which are so vital to our scaleup economy.”

Michael Moore, BVCA Director General, said: “Increased business investment is key to the future of the UK economy and we welcome the measures announced by the Chancellor today which support this objective.

“Private capital’s focus on sectors like AI, robotics and fintech has helped the UK to become a world leader in these areas – further reform of R&D tax credits will help businesses to drive further innovation and strengthen the UK’s position in this new economy.”

Fuel Duty

Edmund King, President, the AA said: “The AA welcomes the cut in fuel duty. However, we are concerned that the benefit will be lost unless retailers pass it on and reflect a fair price at the pumps. Average pump prices yesterday hit new records- despite the fall in wholesale costs.

“The Chancellor has ridden to the rescue of UK families and businesses who use their vehicles, not for pleasure, but to function in their daily lives. Since the start of the year, the 20p-a-litre surge in pump prices has been the shock that rocked the finances of families, and particularly young drivers, pensioners and lower-income workers who need to commute each day.

“AA research showed that even in November, when petrol pump prices set new records at around 148p a litre, 43% of drivers were cutting back on car use, other spending to compensate or both. That rose to 59% among young drivers and 53% among the lower-paid. Petrol started this week averaging 167p a litre.

“On top of the duty cut, there has been a substantial reduction in wholesale road fuel costs feeding through to the forecourts since 9 March. That needs to drive lower pump prices also. The road fuel trade shouldn’t leave the Treasury to do the heavy lifting when cutting motoring costs.”

Elizabeth de Jong, Director of Policy, Logistics UK said: “With average fuel prices reaching the highest level on record and rising inflation, there has been an unstainable burden on logistics businesses which operate on very narrow margins of around 1%; the Chancellor’s decision today will help to ensure operators can continue to afford supplying the nation with all the goods it needs, including food, medicine and other essential items.

“Fuel is the single biggest expense incurred by logistics operators, accounting for a third of the annual operating cost of an HGV. The cut in fuel duty of 5ppl will result in an average saving of £2,356 per year per 44-tonne truck; this move will help to strengthen the UK’s supply chain during a time of ongoing financial and operational challenges.”

Zero rating VAT in energy efficiency measures

David Cowdrey, Director of External Affairs, MCS said: “The Chancellor has used the Spring Statement as an opportunity to kick-start the home heating revolution by zero rating VAT on home energy efficiency and renewable technologies for five years.

“This announcement allows people to insulate their homes and save on our fuel bills, making houses cheaper to run, especially when gas prices are at a record high.

 “The government’s bold move to zero rate VAT can help the UK meet its net zero targets by using proven, off the shelf, zero carbon domestic energy solutions, such as solar and heat pumps, which are ready to be upscaled now.“

Professor Robert Gross, Director, U.K. Energy Research Centre, Professor of Energy Policy, Imperial College said: “The VAT cut on energy efficiency products is a great first step in helping households adopt simple measures to help cut fuel bills for the coming winter.

“Better insulated houses need less energy to keep warm and this is good for our bills, energy security and the environment.”

Amy MacConnachie, Director of External Affairs, Association for Renewable Energy and Clean Technology (REA), said: “The REA warmly welcomes today’s announcement to remove VAT on domestic renewables for five years. We have long campaigned for this change because we know these installations will help protect people from volatile gas prices and reduce their energy bills, while also supporting the transition to Net Zero and providing a catalyst for new jobs and investment across the country.

“The move to bring forward business rate exemptions for green technologies from April 2022, including solar panels and heat pumps, will help to further drive down costs and support the decarbonisation of buildings.

“We now want to see the Government clarify and go further on the range of technologies included as Energy Saving Materials, particularly energy storage, but this is a positive package of measures for our sector.

“We stand ready to deliver an energy future which is independent, secure, and stable.”

‘Gangster Capitalism’: outrage over P&O’s 800 illegal sackings

NATIONAL DEMONSTRATIONS TO BE HELD TODAY

P&O staff and other trades unionists will join demonstrations in Dover, Liverpool, and Hull today, condemning P&O for sacking 800 staff.

The company, which is funded by the Dubai Royal Family, stunned workers in a pre-recorded Zoom call, when they informed staff that they were being dismissed and would be replaced by cheap agency labour from abroad.

When workers rightly refused to simply accept this despotic decision, private security staff with handcuffs, believed to have been hired by the company, began to drag workers off the ships.



RMT general secretary Mick Lynch said: “It is vital workers from every industry mobilise for the demonstrations on Friday.

“We need to send a message to ruthless employers and the government alike, that when working people are treated so abysmally, there is a militant response from the trade union movement.

“This example of gangster capitalism which our members in P&O have been subjected, is what lies ahead for other workers up and down the country if we do not all take a stand.”

The demonstration details are as follows: 

Dover:12.00 midday – meet Maritime House Snargate Street, Dover CT17 9BZ

Liverpool: 1.00pm Main Liverpool Port entrance Liverpool L21 1LA

 Hull:  12. 00 midday– King George Dock, Hull HU9 5PR 

Labour’s Shadow Transport Secretary Louise Haigh said: “This scandalous action is a betrayal of the workers that kept this country stocked throughout the pandemic. Unscrupulous employers cannot be given free rein to sack their workforce in secure jobs and replace with agency staff.

“The Conservative government must not give the green light to this appalling practice and must act to secure the livelihoods of these workers.”

First Minister Nicola Sturgeon tweeted: “I’m deeply concerned at P&O announcement – due to the importance to Scotland of the Cairnryan/Larne route obviously, but also the impact on 100s of workers.

“Fire & rehire is an appalling practice & offends the basic principle of fair work. @scotgov will be seeking urgent talks”.

While the UK Government has made no official comment, Defence Minister James Heapey told BBC’s Breakfast that P&O Ferries have ‘behaved disgracefully’ but admitted that the company’s ‘despicable’ fire and rehire action is not something the government could have stopped. He said the government will focus on supporting the workers who have lost their jobs .

  • Union body calls on ministers to urgently bring forward an employment bill to end fire and rehire style practices
  • Workers must be reinstated immediately – and P&O Ferries must face serious consequences if they fail to do this, says TUC
  • What happened to P&O workers “can’t ever be allowed to happen again”, says TUC

The TUC has called for the “scandalous” treatment of P&O workers to be a “turning point” for workers’ rights in the UK.

The union body says ministers must bring forward an employment bill now to stop workers from “being treated like disposable labour”.

The call comes after 800 P&O crew were sacked without notice on Thursday and threatened with handcuffs if they refused to leave their ships.

P&O Ferries’ actions appear to be unlawful. But the TUC says these events show that UK employment law urgently needs strengthening to penalise bad employers.

The union body says ministers must use an employment bill to:

  • End fire and rehire style practices and stop companies firing at will: P&O has exploited many of the same weaknesses in the law as companies using the punitive fire and rehire tactics. TUC research published during the pandemic revealed that 1 in 11 (9%) of workers have been forced to re-apply for their jobs on inferior terms and conditions. The law should state that no notices of dismissal can be given until consultation has been completed. Employees should be given protection from unfair dismissal from day one in the job.
  • Increase penalties on companies that break employment law: P&O’s failure to consult staff on their redundancies was unlawful. But companies who flout employment law in this way currently face very low fines and can get away with offering staff measly compensation.
  • Ban other forms of exploitative practices:  More than 1 million workers in the UK are employed on zero-hours contracts and thousands of others are employed in bogus self- employment. The TUC says zero-hours contracts and umbrella companies should be banned.

In addition, the TUC is calling on the government to:

  • Remove DP World (P&O ferries owner) from any government advisory groups: DP World currently sits on the influential UK Government’s Transport Advisory Group.
  • Get around the table with unions representing members in the sector to urgently review government contracts with P&O and ensure livelihoods are protected

Reinstate sacked staff

 All sacked staff must be reinstated immediately without loss of pay, the TUC is demanding – adding that P&O should face serious consequences.

The union body has warned the government that a “slap on the wrist” from ministers would not be good enough.

And the government must put in place measures to ensure that all future procurement comes with a commitment from companies receiving public money to respect workers’ rights. 

TUC General Secretary Frances O’Grady said: “Everyone deserves to be treated with dignity and respect at work. But bad bosses can still get away with treating staff like disposable labour.

“What happened at P&O is a national scandal – it can’t ever be allowed to happen again. Enough is enough. This must be turning point for workers’ rights in the UK.

“The government must urgently bring forward an employment bill that strengthens workplace protections and that imposes strong penalties on employers who break the law.

“The prime minister vowed to make Britain the best country in the world to work. He has run out of excuses for failing to deliver on that promise.”

On the need for the government to penalise P&O, Frances added: “P&O has acted appallingly. It must be made an example of.

“A slap on the wrist is not going to cut it.

“If the company refuses to reinstate all of its sacked staff it should face serious consequences.”

International Women’s Day 2022: it’s time to #DemandBetter

International Women’s Day celebrates the social, economic, political, and cultural achievements of women around the world; but women still face significant discrimination in the workplace and wider society, writesTUC’s NIKKI POUND.

It is critical to raise awareness today on the continued inequality faced by women and to rally calls for action to accelerate equality.

We have seen women at the sharp end of the pandemic, on the frontline as key workers, and taking on an even more disproportionate burden of care and domestic work in the home.

We know that many women face multiple forms of discrimination with racial and gender inequalities intersecting, highlighted by evidence that BME women have had both the highest rate of unemployment (8.8 per cent) and the lowest rate of employment (62.5 per cent) throughout the pandemic.

Disabled women continue to be excluded from the labour market, demonstrated by the 52 per cent employment rate for disabled women workers compared to 85 per cent for white, non-disabled men.

The gender pay gap persists at 15.4 per cent, and the gender pensions gap is more than twice that, at 37.8 per cent.

We know that 54,000 women are forced out of the labour market every year due to pregnancy and maternity discrimination. And 1 million women have been forced to leave their jobs due to the lack of support for them while experiencing menopause.

Currently, only two in ten jobs are advertised as flexible. TUC research shows that half of working mums had had their flexible working request fully or partially turned down by their employer.

Violence against women extends into the workplace with half of all women experiencing sexual harassment in the workplace, rising to 7 in 10 for disabled women. One in eight LBT women have experienced serious sexual assault while at work.

Globally, increasingly authoritarian governments promote anti-feminist, racist, anti-migrant, and homophobic narratives. This has led to a global crackdown on reproductive, sexual and human rights that disproportionately effect women, girls and LGBT+ communities.

This year alone, we have seen attacks on same sex marriage and LGBT+ freedoms across Europe, legislation restricting abortion and contraception in the US, a new crisis of education in North Africa and the Middle East and yet more violence and harassment of trade unionists across Latin America.

As conflicts continue in Syria, Palestine and Afghanistan and new ones unfold in the Ukraine, we see women and girls have their  freedom shattered  and safety removed. But we also see our international sisters fighting back.

In Honduras, a female progressive president has been elected, ending the 12 years of right-wing rule which followed the 2009 coup. Today in Pakistan, for the fifth year running, thousands of women will take to the streets for the Aurat March.

This year, they will be protesting this year for increased wages, security and peace for women– incredibly powerful, given it was here that Malala Yousafzai was shot by the Taliban in 2012 for attempting to attend school.

In the U.S, after years of legal battles, the women’s national soccer team have settled a dispute on unequal pay compared to the men’s team to the tune of $24m. And, in February this year, the International Labour Organization (ILO) and the International Women’s Coffee Alliance (IWCA) have signed a Memorandum of Understanding that establishes a collaborative partnership to improve occupational safety and health training and knowledge for women who depend on coffee production for their livelihoods across the globe.

Here in the UK, trade unions led calls for and won the commitment from government to introduce a preventative duty on employers, forcing employers to take all reasonable steps to prevent sexual harassment in their workplaces.

And we finally got the government to commit to ratifying ILO C190, which recognises the right of everyone to a world of work free from violence and harassment, including gender-based violence.

We also have seen landmark wins on equal pay for work of equal value. We lobbied for guidance on risk assessments make clear that employers must carry out individual risk assessments for pregnant and new mothers in the workplace. And our campaign saw over 7000 responses submitted to the government consultation on flexible working.

So yes, there is always more work to do and some days – when progress feels slow – it is tough. But 57 per cent of trade union members are women, and we continue to lead collective action for women’s equality in the workplace, in our society and across the world.

Here are just a few actions you can take this International Women’s Day

  • The war in Ukraine is forcing many to flee their homes, putting women and children at heightened risk of violence. Donate to the ITUC emergency fundraising appeal today to help local and neighbouring trade unions provide essential provisions.
  • Join our calls to #demandbetter from companies using International Women’s Day as a marketing gimmick by signing up to our megaphone campaign.
  • Download our toolkit on tackling sexual harassment in the workplace and building preventative cultures.
  • Join a trade union

This International Women’s Day, we must remember and celebrate our hard fought for wins and continue to organise and agitate. And from our brothers and allies we need not just their solidarity, but their action.

As our sisters said before us: ‘Deeds not Words’.

#IWD2020

#BreakTheBias

Trade unions call for ‘emergency support’ from Chancellor in response to Ukraine crisis

Trade unions and the TUC have written to the Chancellor calling on him to use his spring statement to introduce ‘emergency support’ in response to the conflict in Ukraine.

This includes measures to support Ukrainian refugees, ensure that sanctions are effective, and protect UK families from the impact of rising energy prices.

The TUC has condemned the invasion of Ukraine, expressed its solidarity with the Ukrainian people, and called on governments to pursue all diplomatic efforts towards peace.

The letter from the TUC and unions says that the Chancellor must now step up with new financial measures to both support the Ukrainian people, and respond to the impact of the conflict on the cost-of-living crisis in the UK.

The letter calls on the Chancellor to:

  • Ensure that sanctions are effective by increasing enforcement funding for measures in the economic crime bill that would crack down on money-laundering in the UK; and consider a 100 per cent windfall tax on the profits of companies still invested in Russian state enterprises. 
  • Provide safe routes to the UK for those fleeing the conflict, and scrap legislation plans that would close the door on all people fleeing war and threats to their lives. 
  • Fund wider humanitarian assistance for displaced people, including essential medical supplies.
  • Protect working families against further energy price rises as a result of the crisis, by giving grants rather than loans to recued energy bill, increasing the warm homes discount, increasing universal credit, and accelerating a home energy efficiency retrofit programme. 

The letter also calls on the government to ensure that those working in supply chains are protected from disruption, including by considering the use of a short-time working scheme.

TUC General Secretary Frances O’Grady said: “Trade unions condemn the illegal invasion of Ukraine. We know that working people in Ukraine, Russia and across Europe want peace. The UK government must pursue all diplomatic efforts to achieve that goal.

“The Chancellor must use his spring statement to act too. That means ensuring that sanctions are more effective, with funding to crack down on money-laundering in the UK. And he should fund greater humanitarian assistance for Ukrainians, including safe passage for those fleeing the war. 

“Working people in the UK will need protection from even steeper hikes in gas bills from the conflict. The Chancellor should introduce grants to help with energy prices, roll out an emergency programme of home insulation, and fund it with a windfall tax on excess energy profits.”  

“The government must provide safe routes to the UK for those escaping conflict. And ministers should scrap their Nationality and Borders Bill, which will close the door to people fleeing war and threats to their lives.”

Full text of the letter to the Chancellor:

Dear Chancellor 

Protecting working people from the impact of the invasion of Ukraine

The trade union movement is united in its condemnation of Russia’s illegal invasion of a sovereign nation. Our solidarity is with the working people of Ukraine. Working people always suffer in conflict and the pursuit of peace is a fundamental trade union value, an essential condition to secure safety, social justice and workers’ and human rights. 

The UK government must now take further action to support and strengthen international efforts to impose significant and effective sanctions on Russia and to support all diplomatic efforts towards peace. And it must play its part in supporting humanitarian assistance for forcibly displaced people and welcoming refugees seeking to come to the UK. 

The government must also ensure that it takes every step possible to protect working people here at home from the impact of the conflict and measures taken in response to this. We urge you to use your forthcoming budget to act. We call on you to:  

  • Target sanctions on wealthy elites linked to the Russian government – and ensure they are effective.  We welcome the proposed register of overseas owners of UK property through the Economic Crime (Transparency and Enforcement) Bill, but this needs to be backed up by sufficient powers and funding for Companies House to enforce. 
  • Fund humanitarian assistance for displaced people, and welcome refugees to the UK. The new Ukrainian visa proposals are inadequate and fall well short of what is needed. Limiting asylum to Ukrainian immediate family members of those already settled in the UK will not reassure Ukrainians fleeing war and bloodshed that they will be able to seek sanctuary in our country. The government must establish a safe route, so all Ukrainian families, who through no fault of their own have been forced from their homes, can easily apply for a humanitarian visa to travel to the UK. The Nationality and Borders Bill must be scrapped. Thousands of Ukrainians fleeing war may try to find sanctuary in the UK.  If the Bill is passed many of these Ukrainians, along with others around the world fleeing conflict, threats to their lives and seeking safety may find themselves treated as criminals and deported, instead of being offered sanctuary.
  • Protect working families against rising gas prices, by raising funds through a windfall tax on energy profits and a new tax on profits made by UK companies invested in Russian state businesses. The current energy price crisis is hitting workers hard, and prices are likely to rise further. Government should implement existing TUC calls for: 
  • Support for households in the form of a grant, not a loan (replacing the energy price rebate proposed by the government). 
  • An increase in the warm homes discount, and a permanent increase in Universal Credit. 
  • Rapid implementation of an accelerated and expanded domestic home retrofit programme, delivered by local councils who are best placed to deliver fast 
  • Funding for these measures by the implementation of a windfall tax on north sea oil and gas companies. 
  • An immediate increase in the national minimum wage to at least £10 an hour and a strategy to protect pay across the economy, including public services.

In addition, the government should consider implementing a new 100 per cent tax on additional profits made by UK based companies from their shareholdings in Russian state-backed enterprises that have profited from the gas price crisis. For example, this includes profits made by oil companies Shell and Vitol from their shareholdings in oil and gas fields in Russia in joint ventures with state-controlled companies Rosneft and Gazprom. 

  • Protect jobs in supply chains now and build future supply chain resilience. Forcompanies sourcing parts and supplies from Russia, sanctions could have a significant impact. To protect jobs, the UK government should: 
  • Re-introduce the furlough scheme or a permanent short-time working scheme in order to allow companies to protect jobs while they seek to shift their supply chains. 
  • Begin an urgent programme to provide investment support to help companies to invest in UK supply chains and jobs. 

Trade union leaders would be happy to meet you to discuss these issues, and the steps we must take now to support working people in Ukraine and in the UK, 

Yours sincerely 

Frances O’Grady, General Secretary, TUC 

Sue Ferns, President, TUC

Christina McAnea, General Secretary, UNISON

Sharon Graham, General Secretary, Unite

Gary Smith, General Secretary GMB 

Kevin Courtney and Mary Bousted, Joint General Secretaries, NEU

Paddy Lilis, General Secretary, Usdaw

Patrick Roach, General Secretary, NASUWT

Dave Ward, General Secretary, CWU

Mark Serwotka, General Secretary, PCS

Mike Clancy, General Secretary, Prospect 

Ged Nichols, General Secretary, Accord 

Ukraine: what you can do to help

Everyone wants to do their bit to support those who have been forced to flee their homes because of the invasion. Here is how you can help.

Financial donations

If you want to donate money, there are a number of charities providing humanitarian relief in Ukraine.

The UK Government will match public donations to this appeal pound-for-pound up to £25 million.

Make your donation safely

There are lots of organisations across the UK and internationally who have launched appeals, and you may wish to donate through these organisations instead. There are some simple steps you can take to ensure your money is safe and being used effectively:

  • Check the charity’s name and registration number using the search the charity register tool
  • Most charities with an income of £5,000 or more must be registered, which means they are regulated by The Charity Commission
  • Make sure the charity is genuine before giving any financial information
  • If in doubt, ask the charity or organisation for more information

Donating essential supplies

One of the best ways to help is by donating cash through trusted charities and aid organisations, rather than donating goods. Cash can be transferred quickly to areas where it is needed and individuals and aid organisations can use it to buy what is most needed. Unsolicited donations of goods, although well-meant, can obstruct supply chains and delay more urgent life-saving assistance from getting through.

Organisations across the UK are gathering essential supplies, such as clothes, first aid and sanitary products. Many charities and community groups will have lists of items they need.

Charities with experience of responding to disasters are best placed to reach victims on the ground.

Apply to be a sponsor

The government will be launching a new sponsorship scheme to make sure that Ukrainians who have been forced to flee their homes have a route to safety.

The scheme will match people, charities, businesses and community groups to Ukrainians who do not have family ties to the UK.

Details of the scheme and how you can apply will be published shortly by the Department for Levelling Up, Housing and Communities.

Social media – staying safe online

The UK Government, Ukrainian Government and others have been sharing messages of support on social media using the hashtag #StandForUkraine

Take care what you share! There is a lot of false information about the conflict circulating online – this is often called misinformation and disinformation. You can do your part to stop the spread:

  • Ask yourself – does this look right? Does this sound right? Does this information come from a source I recognise?
  • The SHARE checklist can help you decide if information can be trusted, before you interact with or share it on your social media channels

Cyber security

The National Cyber Security Centre is not aware of any specific cyber threats to the UK in relation to the Russian invasion of Ukraine. However we strongly encourage organisations and citizens to follow NCSC guidance on steps to take when the cyber threat is heightened.

Visit the Cyber Aware website where you find practical steps and tools to help keep you, your family or business more secure online.

#StandWithUkraine

Workers say no to increased surveillance since COVID-19

New TUC polling reveals majority of workers say they have experienced surveillance in the past year

  • Overwhelming support for stronger regulation to protect workers from punitive use of AI and surveillance tech 
  • Post Office scandal must be a turning point on uncritical use of worker monitoring tech, says TUC 

Intrusive worker surveillance tech and AI risks “spiralling out of control” without stronger regulation to protect workers, the TUC has warned. Left unchecked, the union body says that these technologies could lead to widespread discrimination, work intensification and unfair treatment.  

The warning comes as the TUC publishes new polling, conducted by Britain Thinks, which reveals an overwhelming majority of workers (60 per cent) believe they have been subject to some form of surveillance and monitoring at their current or most recent job. 

The TUC says workplace surveillance tech took off during the pandemic as employers transferred to more remote forms of work. 

Surveillance can include monitoring of emails and files, webcams on work computers, tracking of when and how much a worker is typing, calls made and movements made by the worker (using CCTV and trackable devices). 

Three in 10 (28 per cent) agree monitoring and surveillance at work has increased since Covid – and young workers are particularly likely to agree (36 per cent of 18-34 year olds). 

There has been a notable increase in workers reporting surveillance and monitoring in the past year alone (60 per cent in 2021 compared to 53 per cent 2020).  

In particular, more workers are reporting monitoring of staff devices (24 per cent to 20 per cent) and monitoring of phone calls (14 per cent to 11 per cent) compared to 2020. 

In calling for stronger regulation, the TUC highlights the recent Post Office scandal which saw hundreds wrongly prosecuted for theft and false accounting after a software error – and says it must be a turning point on uncritical use of worker monitoring tech and AI. 

Creeping role of surveillance 

The creeping role of AI and tech-driven workplace surveillance is now spreading far beyond the gig economy into the rest of the labour market, according to the TUC.  

The following sectors have the greatest proportion of workers reporting surveillance: 

  • financial services (74 per cent) 
  • wholesale and retail (73 per cent) 
  • utilities (73 per cent) 

The union body warns of a huge lack of transparency over the use of AI at work, with many staff left in the dark over how surveillance tech is being used to make decisions that directly affect them. 

The use of automated decision making via AI includes selecting candidates for interview, day-to-day line management, performance ratings, shift allocation and deciding who is disciplined or made redundant. 

The TUC adds that AI-powered technologies are currently being used to analyse facial expressions, tone of voice and accents to assess candidates’ suitability for roles. 

To combat the rise of workplace surveillance tech and “management by algorithm”, the TUC is calling for: 

  • A statutory duty to consult trade unions before an employer introduces the use of artificial intelligence and automated decision-making systems. 
  • An employment bill which includes the right to disconnect, alongside digital rights to improve transparency around use of surveillance tech  
  • A universal right to human review of high-risk decisions made by technology   

The TUC points out that the government recently consulted on diluting General Data Protection Regulation (GDPR) as part of its post-Brexit divergence agenda, despite it providing some key protections for workers against surveillance tech. 

The EU is currently putting in place laws dealing specifically with the use of AI, whereas the UK does not have anything like this. The TUC says this is yet another example of the UK falling behind its EU counterparts on workers’ rights. 

There is significant and growing support among workers for stronger regulation of AI and tech-driven workplace surveillance: 

  • Eight in ten (82 per cent) now support a legal requirement to consult before introducing monitoring (compared to 75 per cent in 2020)  
  • Eight in 10 (77 per cent) support no monitoring outside working hours, suggesting strong support for a right to disconnect (compared to 72 per cent in 2020) 
  • Seven in 10 (72 per cent) say that without careful regulation, using technology to make decisions about workers could increase unfair treatment (compared to 61 per cent 2020). 

Last year the TUC launched its manifesto, Dignity at work and the AI revolution, for the fair and transparent use of AI at work. 

TUC General Secretary Frances O’Grady said: “Worker surveillance tech has taken off during this pandemic – and now risks spiralling out of control. 

“Employers are delegating serious decisions to algorithms – such as recruitment, promotions and sometimes even sackings. 

“The Post Office scandal must be a turning point. Nobody should have their livelihood taken away by technology. 

“Workers and unions must be properly consulted on the use of AI, and be protected from its punitive ways of working.  

“And it’s time for ministers to bring forward the long-awaited employment bill to give workers a right to disconnect and properly switch off outside of working hours.” 

Gender pay gap means women work for free for two months of the year

New TUC analysis reveals Women’s Pay Day – the day when the average woman starts getting paid compared to the average man – was Friday 25 February. In Scotland, the date was 11 February.

  • In parts of the country where the gender pay gap is wider, women work for free for longer. And in finance and insurance, women wait until 27 April for their Women’s Pay Day 
  • TUC calls on ministers to boost rights to flexible working, and for cash injection for childcare sector 

The average woman effectively works for free for nearly two months of the year compared to the average man, according to new analysis published by the TUC. 

The gender pay gap for all employees is 15.4 per cent. This pay gap means that women wait 56 days before they start to get paid on Women’s Pay Day today. 

Industrial gender pay gaps 

Despite the introduction of gender pay gap reporting, the analysis published by the TUC today shows that there are still big gender pay gaps in many industries. 

Even in jobs that tend to be dominated by female workers like education and social care the gender pay gap persists. 

In these sectors women get paid much less per hour on average than men, both because they are more likely to be in part-time jobs or are in lower-paid roles.  

  • In education the gender pay gap is 25.4 per cent, so the average woman effectively works for free for more than a quarter of the year (93 days) and has to wait until Saturday 2 April 2022 before she starts getting paid compared to the average man. 
  • In health care and social work jobs, where the gender pay gap is 18.3 per cent, the average woman waits 67 days for her Women’s Pay Day on Monday 7 March 2022. 

The longest wait for Women’s Pay Day comes in finance and insurance. The gender pay gap (32.3 per cent) is the equivalent of 118 days, meaning it’s nearly a third of the year before Women’s Pay Day finally kicks in on 27 April 2022. 

Generational gender pay gaps 

The TUC analysis shows that the gender pay gap is widest for older women, so they have to wait longer for their Women’s Pay Day. 

  • Women aged between 40 and 49 have a pay gap of 21.3 per cent and work for free until Friday 18 March 2022. 
  • And women aged 50 and 59 have the highest gender pay gap (21.8 per cent). They work 80 days of the year for free before they are paid on Sunday 20 March 2022. 

Regional gender pay gaps 

The analysis also shows that in some parts of the country gender pay gaps are even bigger, so their Women’s Pay Day is later in the year. 

  • The gender pay gap is largest in the south east (18.9 per cent). Women in this region work 69 days for free and their pay day isn’t until Wednesday 9 March. 
  • And women in the south west (16.6 per cent) and the east midlands (16.8 per cent pay gap) have to wait until next week (Tuesday 1 March and Wednesday 2 March) for their pay days. 

Regional variations in the gender pay gap are likely to be caused by differences in the types of jobs and industries that are most common in that part of the UK, says the TUC. 

TUC General Secretary Frances O’Grady said: “It’s shocking that working women still don’t have pay parity. At current rates of progress, it will take nearly 30 more years to close the gender pay gap. 

“It’s clear that just publishing gender pay gaps isn’t enough. Companies must be required to explain what steps they’ll take to close their gender pay gaps – and bosses who don’t comply with the law should be fined. 

“The last two years have shown us that employers can do more to help women balance caring responsibilities and work. Flexible working is vital to mums keeping their jobs and progressing at work and is our best chance of closing the gender pay gap. 

“All jobs must be advertised with the possible flexible options clearly stated, and all workers must have the legal right to work flexibly from their first day in a job.” 

Childcare and parental leave 

Frances added: “The gender pay gap widens dramatically once women become mums. We need more funding for affordable, good quality childcare to support working parents – along with better wages and recognition for childcare workers. 

“And both parents need to be able to share childcare more easily. Without better rights to well-paid leave, mums will continue to take on the lion-share of caring responsibilities – and continue to take a financial hit. 

“We need a complete overhaul of the shared parental leave system. It’s not an affordable option for most working families. Dads need leave they can take in their own right. It shouldn’t rely on mums giving up some of their maternity leave.” 

Number of workers on universal credit up by 1.3 million since the eve of the pandemic

  • 130% rise in working claimants during the pandemic 
  • Low-income workers facing “perfect storm” this spring unless ministers improve “woefully inadequate” levels of support, warns union body 
  • Cost-of-living crisis already depressing value of UC, TUC analysis reveals 
  • *NEW POLL* shows many families already struggling to make ends meet 

The TUC has warned that millions of low-income workers face a “perfect storm” this April with universal credit (UC) falling behind the cost of living as energy bills and taxes rise. 

The warning comes as new TUC analysis reveals that the number of workers on UC has increased by 1.3 million since the eve of the Covid-19 pandemic. 

The analysis of official statistics shows that over 2.3 million workers were in receipt of UC at the end of 2021, compared to just over one million on the eve of the pandemic in February 2020. 

This represents an increase of 130 per cent over the last two years and means 1 in 14 (7.2 per cent) working adults now claim UC. 

The TUC says the huge rise in UC recipients has been driven by working households being pushed into financial hardship during Covid, with millions facing a cost-of-living crunch this year. 

Basic value of universal credit now lower than at start of pandemic 

The TUC says that the basic value of UC is now lower than at the start of the pandemic as a result of UC not keeping up with inflation. 

TUC estimates show that the value of UC has fallen by £12 a month in real terms when measured against CPI inflation and £21 a month when measured against RPI inflation compared to just before the pandemic (February 2020).  

The TUC says this trend will only get worse in the months ahead with inflation forecast to rise further. 

Struggling to cover the basics 

The TUC warns that millions of low-paid families face a crunch point in April when energy bills and national insurance contributions go up – at the same time as UC continues to fall in value. 

New polling – carried out for the union body before last week’s energy cap announcement and Bank of England forecasts – shows that many are already struggling to make ends meet: 

  • One in eight workers (12 per cent) say they will struggle to afford the basics in the next six months. And a fifth of working people (22 per cent) say they’ll struggle to afford more than the basics. 
  • Low-paid workers are more likely to be struggling. One in six (17 per cent) low-paid workers (those earning less than £15,000 a year) say they will struggle to afford basics in the next six months, and three in 10 (29 per cent) say they’ll struggle to afford more than the basics. 

Parents of young children, disabled workers, key workers and BME workers are more likely to be struggling: 

  • Nearly one in five families (18 per cent) with kids under 11 will struggle to afford the basics 
  • Over one in five (21 per cent) disabled workers will struggle to afford the basics, compared to 10 per cent of non-disabled workers 
  • 14 per cent of key workers say they’ll struggle to afford the basics in the next six months, compared to 10 per cent of non-key workers 
  • 14 per cent of BME workers say they’ll struggle to afford the basics in the next six months, compared to 11 per cent of white workers 

The poll also reveals that a fifth of workers (21 per cent) say they have Christmas debts to pay off this year – a number that rises to over a quarter (28 per cent) for workers with children of school age. 

Better support needed 

The TUC says the government must do far more to help struggling households to get through the months ahead. 

The union body says the cost-of-living support announced by the Chancellor on Thursday is “woefully inadequate” and will provide families with just £7 extra a week – most of which will have to be repaid. 

The TUC is also calling for UK Government to use the upcoming spring budget to: 

  • Increase to UC to 80 per cent of the real Living Wage. 
  • Introduce a windfall tax on energy companies, using the money to reduce household energy bills 
  • Boost the minimum wage to least £10 an hour now 
  • Work with unions to get pay rising across the economy 

TUC General Secretary Frances O’Grady said: “Millions of low-paid workers face a perfect storm this April.  

“At the same time as energy prices and national insurance contributions shoot up, universal credit is falling in value. 

“The government must do far more to help struggling families get through the tough times ahead. The support package announced by the Chancellor last week is woefully inadequate. 

“Universal credit urgently needs boosting and we need further action to reduce fuel costs for those battling to make ends meet. 

“Oil and energy companies shouldn’t be making bumper profits, while many struggle to heat their homes. 

“If ministers fail to do what is necessary, more households will be pushed below the breadline.” 

On the need to boost pay, Frances added: “The best way to give working families long-term financial security is to get pay rising across the economy. 

“That means increasing the minimum wage to at least £10 an hour now, and ministers requiring employers to negotiate sector-wide fair pay agreements with unions.” 

Ofgem: Energy price cap to increase by £693 from April

“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet”

  • Record increase in global gas prices sees energy price cap rise of 54%
  • Ofgem knows this rise will be extremely worrying for many people
  • Customers struggling to pay their energy bill should contact their supplier to access the help available

The energy price cap will increase from 1 April for approximately 22 million customers. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year (difference due to rounding). Prepayment customers will see an increase of £708 from £1,309 to £2,017. 

The increase is driven by a record rise in global gas prices over the last 6 months, with wholesale prices quadrupling in the last year.

It will affect default tariff customers who haven’t switched to a fixed deal and those who remain with their new supplier after their previous supplier exited the market.

The price cap is updated twice a year and tracks wholesale energy and other costs.

It stops energy companies from making excessive profits, ensuring customers pay no more than a fair price for their energy.

The price cap allows energy companies to pass on all reasonable costs to customers, including increases in the cost of buying gas.

Since the price cap was last updated in August, the current level does not reflect the unprecedented record rise in gas prices which has since taken place.

Under the price cap mechanism, energy companies will be allowed to pass on these higher costs from April when the new level takes effect.

This is because energy companies cannot afford to supply electricity and gas to their customers for less than they have paid for it.

Over the last year, 29 energy companies have exited the market or been put in special administration in the wake of soaring global gas prices, affecting around 4.3 million domestic customers.

Jonathan Brearley, chief executive of Ofgem, said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.

“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas. 

“Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”

Ofgem will tomorrow announce further measures to help the energy market weather future volatility by increasing financial resilience and have the flexibility to respond so that risks are not inappropriately passed on to consumers.

This follows measures announced in December.

The further measures include enabling Ofgem to update the price cap more frequently than once every 6 months in exceptional circumstances to ensure that it still reflects the true cost of supplying energy.

Help available for customers:

  • If customers are struggling to pay for energy bills, they should contact their energy supplier as soon as possible. Depending on their circumstances, customers may be eligible for extra help with their energy bills or services, such as debt repayment plans, payment breaks, emergency credit for prepayment metered customers, priority support and schemes like the Winter Fuel Payment or Warm Home Discount rebate.
  • Breathing Space Scheme: This is a scheme to give households time to receive debt advice and find a solution to sort out their debt problems. Breathing space will last for 60 days as long as applicants remain eligible during which time all creditors who have been included will be informed and must stop any collection or enforcement activity. Once the breathing space ends, creditors will be able to collect the debt in the usual way. Call the National Debtline on Freephone 0808 808 4000 or visit www.nationaldebtline.org
  • The Citizens Advice consumer service can provide advice on how customers can resolve problems with their energy provider. You can contact Citizens Advice via webchat, or by calling 0808 223 1133. For complex or urgent cases, or if a person is in a vulnerable situation, they may then be referred onto the Extra Help Unit. 

2. Ofgem will announce further measures tomorrow including:

  • Introducing an uplift in the wholesale cost allowance in the price cap: after reviewing the evidence, Ofgem has decided that the existing price cap methodology did not appropriately account for the additional wholesale energy costs energy companies have incurred during the current price cap period following the unprecedented scale of wholesale energy prices and volatility. This adjustment represents less than 10% of the overall price cap increase.
  • Changing licence conditions to give Ofgem the more flexibility to change the price cap level if needed in between the regular six-monthly cap updates: Ofgem has set ourselves five tests which mean we will only expect to use the power in exceptional circumstances.
  • Further reforms to the price cap from October: In December we set out three options to make the price cap more robust to high and volatile wholesale energy costs while preserving as far as possible the benefits of the price cap for consumers. The consultation published tomorrow will include all three options, with quarterly updates as our preferred option

Breakdown of costs in the energy price cap

Dual fuel customer paying by direct debit, typical energy use (GB £)

Dual fuel customer paying by direct debit, typical energy use

*Network costs: The main driver of this increase is the recovery of Supplier of Last Resort (SoLR) levy costs (£68). A supplier acting as a SoLR can make a claim for any reasonable additional, otherwise unrecoverable, costs they incur. These levy claims are paid to energy companies by the distribution network companies and recovered from consumers via their charges.

5. The charts below show the wholesale prices that are used to determine the wholesale cost allowance within the price cap from spring 2018 ahead of the introduction of the price cap in January 2019.

Wholesale costs make up the majority of a customer’s bill. An efficient supplier will purchase energy for their customers on the wholesale market in advance of when they need to supply that energy.

This purchasing strategy is reflected in how the wholesale allowance is calculated within the price cap. We observe the forward-looking energy contracts that energy companies typically purchase over time and combine these to determine the wholesale cost allowance within the price cap.

We do this twice a year when we update the price cap in August for the winter period (October – March) and in February for the summer period (April – September) based on the price of these forward-looking energy contracts over the previous six months.

The fixed horizontal line shows the average wholesale cost allowance for each 6 month price cap period based on the price of the relevant forward looking energy contracts (the jagged line).

The recent spike in the prices of relevant forward looking energy contracts over the last 6 months can be clearly seen. The scale and pace of wholesale price increases has resulted in a big increase in the wholesale cost allowance for the price cap level for summer 2022.

Wholesale gas price costs in the energy price cap

Pence per therm

Wholesale gas price costs in the energy price cap

Wholesale electricity price costs in the energy price cap

Pounds per megawatt hour

Wholesale electricity price costs in the energy price cap

Data sets behind these graphs are proprietary and can be sourced from ICIS.

Chancellor’s statement – Energy Price Cap

Statement, as delivered by Chancellor Rishi Sunak, on 3 February 2022:

Mr Speaker,

The UK’s economic recovery has been quicker and stronger than forecast.

In the depths of the pandemic, our economy was expected to return to its pre-crisis level at the end of 2022.

Instead, it got there in November 2021 – a full year earlier.

Unemployment was expected to peak at nearly 12%.

Instead, it peaked at 5.2% and has now fallen to just over 4% – saving more than 2 million jobs.

And with the fastest growing economy in the G7 this year…

Over 400,000 more people on payrolls than before the pandemic…

And business investment rising…it’s no wonder Mr Speaker, that borrowing is set to fall from £320bn last year …

… the highest ever peacetime level …

… to £46bn by the end of this Parliament.

As we emerge from the depths of the worst recession in 300 years, we should be proud of our economic record.

The economy is stronger because of the plan we put in place; because of the actions we took to protect families and businesses.

And that plan is working.

But for all the progress we are making – the job is not yet done.

Right now, I know the number one issue on people’s minds is the rising cost of living.

It is the independent Bank of England’s role to deliver low and stable inflation – and the Governor will set out their latest judgements at midday today.

And just as the government stood behind the British people through the pandemic…

… so we will help people deal with one of the biggest costs they now face – energy.

The energy regulator, OFGEM, announced this morning that the energy price cap will rise in April to £1,971 – an increase of £693 for the average household. Without government action, this would be incredibly tough for millions of hardworking families. So the government is going to step in to directly help people manage those extra costs.

Mr Speaker,

Before I set out the steps we are taking, let me explain what’s happening to energy prices, and why.

People’s energy bills are rising because it is more expensive for the companies who supply our energy to buy oil, coal, and gas.

Of the £693 increase in the April price cap, around 80% comes from wholesale energy prices.

Over the last year, the price of gas alone has quadrupled.

And because over 85% of homes in Britain are heated with a gas boiler, and around 40% of our electricity comes from gas, this is hitting households hard.

The reasons gas prices are soaring are global.

Across Europe and Asia, a long, cold winter last year depleted gas stores.

Disruption to other energy sources like nuclear and wind left us relying more than usual on gas during the summer months.

Surging demand in the world’s manufacturing centres in Asia…

… at the same time as countries like China are moving away from coal…

… is further increasing demand for gas.

And concerns about a possible Russian incursion into Ukraine are putting further pressure on wholesale gas markets.

And so prices are rising.

Mr Speaker,

The price cap has meant that the impact of soaring gas prices has so far fallen mainly on energy companies.

So much so, that some suppliers who couldn’t afford to meet those extra costs have gone out of business as a result.

It is not sustainable to keep holding the price of energy artificially low.

For me to stand here and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest. But what we can do is take the sting out of a significant price shock for millions of families … by making sure the increase in prices is smaller initially and spread over a longer period.

Mr Speaker,

Without government intervention, the increase in the price cap would leave the average household having to find an extra £693.

The actions I’m announcing today will provide, to the vast majority of households, just over half that amount – £350.

In total, the government is going to help around 28 million households this year.

Taken together, this is a plan to help with the cost of living worth around £9bn.

We’re delivering that support in three different ways.

First, we will spread the worst of the extra costs of this year’s energy price shock over time.

This year, all domestic electricity customers will receive an upfront discount on their bills worth £200.

Energy suppliers will apply the discount on people’s bills from October.

With the government meeting the cost in full.

That discount will be automatically repaid from people’s bills in equal £40 instalments over the next five years.

This is the right way to support people while staying on track with our plans to repair the public finances.

And because we are taking a fiscally responsible approach, we can also provide more help, faster, to those who need it most – the second part of our plan.

We’re going to give people a £150 Council Tax rebate to help with the cost of energy, in April – and this discount won’t need to be repaid.

And I do want to be clear with the House that we are deliberately not just giving support to people on benefits.

Lots of people on middle incomes are struggling right now, too – so I’ve decided to provide the council tax rebate to households in Bands A to D.

This means around 80% of all homes in England will benefit.

And the third part of our plan will provide local authorities with a discretionary fund of nearly £150m…

… to help those lower income households who happen to live in higher Council Tax properties…

… and households in bands A-D who are exempt from Council Tax.

We’re also confirming today that we’ll go ahead with existing plans to expand eligibility for the Warm Home Discount by almost a third…

… so that 3m vulnerable households will now benefit from that scheme.

And that’s not all we’re doing to help vulnerable households.

We’re providing £3bn over this Parliament to help more than half a million lower income homes become more energy efficient, saving them on average £290 per year.

Increasing the National Living Wage to £9.50 an hour in April, a pay rise of over £1,000 for 2 million low paid workers.

And providing an effective tax cut for those on Universal Credit, allowing almost 2 million households to keep an average of £1,000 per year.

The payment through energy suppliers will apply across England, Wales and Scotland.

Energy policy is devolved in Northern Ireland, with a different regulator, and the government does not have the legal powers to intervene.

So we will make sure the Executive is funded to do something similar, with around £150m for Northern Ireland through the Barnett formula next year.

And because the Council Tax system is England only, total Barnett consequentials of around £565m will be provided to the devolved administrations in the usual way.

Mr Speaker,

I know that some in this House have argued for a VAT cut on energy.

However, that policy would disproportionately benefit wealthier households.

There would also be no guarantee that suppliers would pass on the discounts to all customers.

And we should be honest with ourselves: this would become a permanent Government subsidy on everyone’s bills.

A permanent subsidy worth £2.5 billion every year – at a time when we are trying to rebuild the public finances.

Instead, our plan allows us to provide more generous support, faster, to those who need it most, providing 28m households with at least £200, and the vast majority receiving £350.

It is fair, it is targeted, it is proportionate – it is the right way to help people with the spike in energy costs.

Mr Speaker,

Today’s announcements are just one part of the government’s plan to tackle this country’s most pressing economic challenges.

A plan for growth – with record investments in infrastructure, innovation and skills.

A plan to restore the public finances – with debt falling by the end of this Parliament.

A plan to cut waiting lists and back the NHS with £29bn over three years and a permanent new source of funding.

And, with the measures I’ve announced today – a plan to help with the rising cost of energy with £350 more in the pockets of tens of millions of hard working families.

That’s our plan to build a stronger economy – not just today but for the long term.

And I commend it to this House.

Commenting on the energy cap rise, interest rate rise and the Chancellor’s measures to address the cost of living crisis, TUC General Secretary Frances O’Grady said: “The Chancellor’s announcement is hopelessly inadequate. For most families it’s just £7 a week and more than half must be paid back.

“It’s too little, it’s poorly targeted, and it’s stop gap measures instead of fixing the big problems.

“Britain needs a pay rise. The best way to help families is to get wages growing again. But this government has no plan to end pay misery.

“Ministers should be getting urgent help to families that need it most through raising universal credit. And we need a windfall tax on the excessive profits from North Sea gas to cut bills and boost investment in affordable energy.”

Responding to today’s announcements on energy costs and the cost of living, Katie Schmuecker, Deputy Director of Policy and Partnerships for the independent Joseph Rowntree Foundation said:  “The Chancellor has offered cold comfort to families in poverty, who are already rationing what they can spend on essentials such as heating and food.

“These families are now expected to find at least half of the eye watering increases in energy bills, when many are already getting into debt to keep their houses warm and food on the table.  

“Three quarters of those who can claim the enhanced support are not in poverty. Meanwhile inflation is set to rise at more than double the rate of benefits. This support will not get people through the next few months and it will not protect those most at risk of hardship. 

“People in poverty are hit hardest by all these pressures because our social security system is simply not offering adequate support, and until that changes they will continue to be exposed to every economic shock. 

“The Chancellor has made his choice, the harder choices will now be coming for those who still can’t afford essentials for themselves and their families.”

 University of Birmingham’s Harriet Thomson on the rise of energy price caps: “This news comes at a time when families across Great Britain have already been facing years of rapidly increasing energy prices, as well as chaotic energy market conditions with the collapse of around 20 energy supplies since January 2021 alone.

“Just last month, ONS data found that 2 in 3 adults said their costs of living had gone up in the past month, with 79% of those attributing blame to gas and electricity prices.

“We know from the extensive body of existing evidence on this topic that lower income households will be disproportionately hit by the price cap increase, risking pushing millions more into a situation fuel poverty.

“This will have serious consequences for physical and mental health, social isolation, and educational attainment, with households forced to make difficult everyday decisions over whether to ‘heat or eat’.  

“Moreover, these price increases are likely to push more people into using risky and/or polluting alternative energy sources, such as DIY candle heaters that have been linked to house fires, burning scrap wood and other flammable materials, and digging up peat. As well as the obvious risks to human life, these approaches will also exacerbate climate change.

“It’s clear that energy companies are reeling from the potent combination of cash flow reductions due to pandemic-related economic pressures on families who are building up more energy debt, and the global gas crisis.

“But the answer is not to burden households with yet more costs. The energy market is broken and needs radical reform – now is the time for the UK government to show ambition and commitment to the nation by investing in deep retrofits of our old and leaky housing stock, and to rollout decentralised renewable energy systems at scale.”

Gove: Levelling Up invitation to ‘join forces for the common good’

The Secretary of State for Levelling Up Michael Gove has written to the First Ministers of Scotland, Wales and Northern Ireland following the publication of the Levelling Up White Paper.

In the letters the Secretary of State for Levelling Up:

  • discusses the publication of the Levelling Up White Paper
  • calls for the First Ministers of Scotland, Wales and Northern Ireland to work with the UK government to overcome shared challenges

The Scottish Government is yet to respond.

LEVELLING UP: REACTION

Responding to the publication of the levelling up white paper, TUC General Secretary Frances O’Grady said: “If we don’t level up at work, we won’t level up the country. 

“But the government has failed to provide a serious plan to deliver decent well-paid jobs, in the parts of the UK that need them most. 

“Insecure work and low pay are rife in modern Britain. And for far too many families hard work no longer pays.  

“With the country facing a cost-of-living crisis, working families need action now to improve jobs and boost pay packets – especially after more than a decade of lost pay.  

“Ministers should have announced a plan to get real wages rising – starting with a proper pay rise for all our key workers and the introduction of fair pay deals for low-paid industries. 

“And they should have delivered the long-awaited employment bill to ban zero hours contracts – as well as new, meaningful investment in skills and good green jobs of the future. 

“Without a plan to deliver decent work up and down the country, millions will struggle on, on low wages, and with poor health and prospects.” 

Recent polling published by the TUC found the British public’s number one priority for levelling up is more and better jobs.  

The TUC polling, conducted by YouGov, reveals that the most popular priority for levelling up, chosen by one in two Britons, is increasing the number and quality of jobs available.   

Increasing the number and quality of jobs is popular across the political spectrum. Half (49 per cent) of those who voted Conservative in the 2019 general election picked it as their top priority, along with more than half of Labour voters (56 per cent) and Lib Dem voters (54 per cent). 

Matthew Fell, CBI Chief Policy Director, said: “The Levelling Up White Paper is a serious assessment of the regional inequalities which have hamstrung the UK’s economic potential for generations.

“It offers a blueprint for how government can be rewired and an encouraging basis for how the private sector can bring the investment and innovation to start overcoming those deep-rooted challenges, and power long term prosperity for every community, wherever they live.

“The picture it paints of a reinvigorated 2030 UK can inspire public and private sector partners to unite on shared missions for improving health, wealth, growth and opportunity across the country.

“Crucially, it accepts the CBI view that business-driven economic clusters – enabling every region and nation to build its own unique competitiveness proposition – can be a catalyst which brings levelling up ambitions to life.”

University of Birmingham’s John Bryson on the Levelling Up announcement: “The UK has always suffered from uneven development and this is reflected in all measures of well-being – from salaries to place-based differences in mortality rates and morbidity.

“There is no country on this planet that does not suffer from some form of uneven place-based outcomes. The implication is that any attempt to remove place-based uneven outcomes will and must fail. The policy outcome might mean some alteration in the extent or degree of unevenness, but unevenness will continue to persist.

“No political party will be able to develop effective solutions to create a level playing field. Nevertheless, this does not mean that policies should not be designed to support and facilitate some form of more even development. However, the outcome will still be the persistence of uneven outcomes.  

“The key to any levelling-up agenda is to accept that every place is different and that there are multiple alternative place-based pathways; London can never become Newcastle and Newcastle can never become London.

“The levelling-up agenda needs to be positioned around a debate that is not based on closing the gap between the richer and poorer part of the country, but instead must be framed around facilitating place-based responsible inclusive prosperity.

“This must be the focus as any policy targeted at economic growth can never be sustainable. The levelling-up policy initiative ultimately must be designed to encourage inclusive carbon-light lifestyles. One implication is that levelling-up might also require some degree of levelling-down.” 

Campbell Robb, Nacro chief executive said: “We know tackling poverty and inequality is key to levelling up. For over 50 years Nacro has been embedded in communities helping some of our nation’s most vulnerable people through our housing, education, and justice services.

“We see a huge amount of unmet need in our country. We need radical change to the systems that support people and significant funding to address this need, not just ambitions and slogans.

“Until there is right support, opportunity, and funding in place for everyone to succeed regardless of the circumstances, we cannot truly claim to be levelling up”

Torsten Bell, Chief Executive of the Resolution Foundation, said: “We now know what levelling up is – George Osborne plus New Labour.

“The White Paper is all about combining the devolution of the former Conservative Chancellor, with the bigger and more activist state focused on deprived areas of the last Labour government.

“There is a strong case for both. Whether they can be delivered very much remains to be seen.”

Responding to the publication of Government’s Levelling Up the United Kingdom White Paper, Social Mobility Commission Chair Katharine Birbalsingh and Deputy Chair Alun Francis said: “We welcome the publication of the Levelling Up White Paper, and the fact that it gives a clear framework to address disparities between regions and communities.

“These communities are full of talented individuals and we must do everything we can to empower them to thrive. Each of the missions the paper sets out are hugely important, and it is crucial that checks and balances are in place to ensure that local government bodies, both existing and new, are held to account for their delivery.

“The Commission has been clear that social mobility must be a core objective of levelling up. We are pleased to see that equipping young people with the tools they need to succeed in life is at the heart of this strategy, and that it includes measures that can contribute to social mobility through every stage of a young person’s journey, from early childhood through education, training and employment.

“The missions are aspirational and pose the right questions, but are also hugely ambitious. The test will be in the detail and the implementation – not just boosting skills, but which skills will be taught and how; not just aiming for essential literacy and numeracy, but defining the most effective ways to achieve them.

“Ultimately, levelling up will be judged on how well it creates opportunities in places they did not exist before. A key test will be how we help those with the fewest opportunities find decent work – this is not just about stories of rags-to-riches. More still needs to be done to stimulate the creation of much-needed quality private sector jobs in the most deprived areas.

“As the Social Mobility Commission we stand ready to work with the government to flesh out that detail, advise on the best ways to make these missions a reality, and ensure that levelling up empowers people up and down the country to stand on their own two feet.”

Finally, after months of delays, the levelling up White Paper is out! So was it worth the wait?

Levelling Up White Paper leaves low paid workers behind

As the TUC has argued, you can’t level up without levelling up at work. In-work poverty, driven by the prevalence of low-paid and insecure work, is sky-high in every region and nation of the UK. This reflects the fact that low-paid sectors, such as retail and social care, are major employers in every area of the country (writes TUC’s JANET WILLIAMSON).

And more and better jobs is the public’s top priority for levelling up, with recent polling for the TUC conducted by YouGov finding that increasing the number and quality of jobs is seen as a priority for levelling up by one in two people from right across the political spectrum. Does the White Paper deliver this?

The White Paper sets out 12 missions – or aims – spanning living standards, R&D, transport, digital connectivity, education, skills, health, well-being, pride in place, housing, crime and local leadership. There is not a specific mission on work, but the living standards mission is “By 2030, pay, employment and productivity will have risen in every area of the UK, with each containing a globally competitive city, and the gap between the top performing and other areas closing.”

So, what is the plan for achieving this?

In a nutshell, it is to grow the private sector and improve its ability to create new and better paid jobs. There are five strategies to support this aim, all of which fall under a typical ‘industrial strategy’ umbrella: improving SME’s access to finance; boosting institutional investment, including from the Local Government Pension Scheme (LGPS) and the recently established National Infrastructure Bank; attracting foreign direct investment and using trade policy, in particular freeports, to boost investment; improving the diffusion of technologies and innovation; and supporting and growing the manufacturing sector.

There are some important questions to be answered in relation to some of these strategies; for example, it is vital that the LGPS is invested in the long-term interests of its members, without its funds being diverted towards other purposes. And each deserves proper examination in its own right.

But what they have in common is that all of them aim to create a better distribution of well-paid and highly skilled jobs around the country. This is needed – but what about the jobs that people are already in? There is no plan to address inequality within the labour market and nothing to level up work that is low paid and insecure.

The experience of London shows that the prevalence of high-paid jobs does not automatically lead to rising incomes for the wider community. Indeed, London has the highest rate of in-work poverty in the country, with people in low-paying service sector jobs priced out of housing and local amenities.

To level up, we must tackle low pay and insecurity head on, and focus on those sectors that need it most.

We need to strengthen the floor of employment protection for all workers by raising the minimum wage and tackling zero hours contracts. And the government should lead by example, giving public sector workers a proper pay rise and reversing the devastating cuts that public services have suffered in the last decade. Decent jobs should be a requirement of all government procurement, so that the power of government is used to drive up employment standards.

But we also need to change the way our economy works to hardwire decent work into business models and economic growth. Relying on the private sector to level up without changing how it works will fail. We need corporate governance reform to rebalance corporate priorities and give working people a fair share of the wealth they create. And we need a new skills settlement to give working people access to lifelong learning accounts and a right to retrain.

Levelling up at work means addressing the imbalance of power in the workplace

Working people need stronger rights to organise collectively in unions and bargain with their employer. Collective bargaining promotes higher pay, better training, safer and more flexible workplaces and greater equality – exactly what we need to level up at work. Unions should have access to workplaces to tell people about the benefits of unions, following the New Zealand model.

And to level up we must tackle entrenched low pay and poor conditions within sectors head on, bringing unions and employers together to set sectoral Fair Pay Agreements for low paid sectors, starting with social care.

Creating new and better jobs is important; but this Levelling Up White Paper has left those in low paid, insecure work behind.

Covid: Ventilation at work

Workplace advice from the TUC

We know that Covid is an airborne virus, meaning it is primarily spread through the air in tiny particles, known as aerosols. Aerosols are different to droplets, which are larger and can be spread from touching surfaces; they are breathed out by a person. That means anyone can spread them, unknowingly: you don’t need to be coughing or sneezing.

Aerosols are small, they can remain suspended in the air for hours. So if you’ve entered a room where someone who is infectious but not showing symptoms has been, even if they have already left, you might still breathe in a Covid-19 aerosol.  

 A combination of concentration, airflow, humidity and temperature, all contribute to whether the aerosol load will be infectious.  

This means ventilation, where we make sure the air is renewed and refreshed regularly, is an incredibly important method for reducing Covid transmission. 

Every workplace risk assessment should include aerosol transmission, and outline what steps are being taken to improve ventilation where necessary. 

Despite ventilation being one of the most effective ways to mitigate risk, union safety reps have told the TUC that it’s the one employers are least likely to be paying attention to. In some cases, we need to force ventilation onto the agenda through union education and action. 

CO2 monitors 
 
More employers are purchasing CO2 monitors, and some unions are making use of them to carry out safety inspections. These devices monitor how much CO2, which is breathed out by people, is in the air in a given space. The higher the level of CO2 is, the more poorly a space is ventilated. A CO2 monitor can’t tell you if you’re breathing in Covid, but it will tell you if you’re breathing in other peoples’ breath. The higher the reading, the more likely exposure will be. 

A key threshold to be aware of is 800 parts per million (ppm): if a CO2 monitor is consistently showing a room as reading above 800ppm, action must be taken to improve ventilation, or the area should be taken out of use.  

When using CO2 monitors, remember to:

  • Take the reading in the most poorly ventilated area of the room, for example do not take the reading next to an open window.  
  • Make a plan to consistently monitor, to improve accuracy and give a better picture for how the air quality is changing: taking readings throughout the day, or week, or adjusting frequency depending on how the space is being used.  

You can find more information on using CO2 monitors from the Health and Safety Executive. 

Improving ventilation

Your CO2 monitor doesn’t improve ventilation, it only gives you an accurate picture of whether you need to make improvements, and by how much. Further action that may need to  be taken can include: reducing the occupancy in a given indoor space, opening windows and doors, and using equipment which can be purchased, such as local air filtration units. 

Ventilation and air conditioning systems can help, but only those which do not recirculate air: any systems which recirculate air around a room or building must be switched off, as these risk spreading aerosols further, rather than filtering them with fresh air supply. Similarly, it’s worth noting that a desk fan which you might have on during hot weather is going to blow air from one part of a room to another: while it might keep you cool, it risks aiding aerosol spread. 

Windows 

The easiest way to boost the fresh air supply in an indoor space is to keep windows or doors open. 

In some workplaces, opening a window will not be an option. With outside air comes other risks: cold temperatures, pollution, or contamination. In some cases, opening windows is simply not an option, for example in a maternity ward, a food factory, or where there are none. This is not a get-out for employers: they must be taking every effort to provide effective ventilation by other means. 

Air filtering units 

Where existing methods to improve ventilation are not to a safe standard, employers should be purchasing and providing air cleaning and filtering units. These are relatively cheap and highly effective in removing airborne virus from indoor room air.   

There are minimum specifications, including the requirement for HEPA (high efficiency particulate absorbing) filters, which remove up to 99% of aerosols. The number of filters required will depend on the size of a workspace. Six ACH (air changes per hour) is considered a safe level of ventilation, and can be achieved by a combination of methods. It is important to bear in mind, CO2 monitoring where air filters are being used will not give an accurate reading of air quality: this is because filtering units will remove virus aerosols, but not CO2 from the air.

Face coverings and face masks 

Wearing a face covering will reduce, but cannot eliminate, your risk of infection. 

This means mitigations such as mask-wearing (in particular, respirator masks at a FFP2 or FFP3 standard, which are effective for aerosol as well as droplet spread) are all the more important; along with effective ventilation. Keeping a good supply of fresh in indoor spaces can make a big difference in diffusing any potential Covid aerosols. Face masks are not a replacement for good ventilation: where possible, both are preferable.

Actions unions are taking include: 

  • Adopting a union position and demands to the employer, based on the situation in your workplace and the steps required to bring ventilation to a safe level.  
  • Safety reps carrying out inspections of indoor workspaces using CO2 monitors. 
  • Issuing a union improvement notice, or emergency advice including removing oneself from the hazardous environment if serious risk presents.  
  • Utilising union representation on any safety committees to raise the issue, and consultation in risk assessment process. 
  • Holding union member-wide meetings on the subject of ventilation, explaining the problem to members, and deciding on next steps including collective action to force changes to keep workers safe, and escalating matters through formal dispute procedures. 

See further resources:  

With thanks to Doctor Jonathan Fluxman for information for this blog. See https://www.docjon.org/