Tag: TUC

TUC: It’s Gender Pension Gap Day – and we need to talk about Carers Credit

Today is Gender Pension Gap Day – the point of the year from which, if women received their pension at the same rate as men, they wouldn’t get another penny until January.

The fact that we reach this point in the middle of the summer holidays is a stark illustration of the levels of inequality in our pension system.

At just under 37.9 per cent, the gender pension gap is much wider than the gender pay gap and, according to annual research by Prospect, it has barely budged in recent years (it stood at 40.7 per cent in 2015-16 when the trade union started measuring it).

The result is that, taking into account all forms of pension, retired women today have incomes around £7,000 a year lower than retired men.

What causes the gender pensions gap?

There are three main drivers of the gender pensions gap:

  • Different lifetime working patterns that mean women are more likely to take time out of the labour market or work part-time, most often because of unpaid caring responsibilities
  • The gender pay gap, exacerbated by a workplace pension system that excludes many low earners altogether
  • Differing levels of state pension entitlement

The impact of unpaid caring

Previous TUC analysis has highlighted the role of the pay gap – and a workplace pension system that excludes many low earners – in leaving women poorer in retirement.

But the most significant factor in the wildly unequal pension outcomes for men and women is the first bullet point – women are much more likely than men to spend time out of work or working part-time because of caring commitments than men.

This matters because our pension system is designed so that the typical worker will get around half the retirement income they need from the State Pension and half from a workplace pension.

National Insurance credits generally recognise the value of unpaid work such as caring so that people continue to build up state pension entitlement, but those out of paid work stop building up their workplace pension.

These contribution gaps are the biggest factor in women with a defined contribution pension approaching retirement having a pension pot less than half the size of men on average.

How wide is the ‘economic activity gap’?

New TUC analysis shows that women are vastly more likely than men to be out of paid work – and therefore unlikely to be building up a workplace pension – because of caring responsibilities.

This disparity can be seen in every age group, and is particularly wide for groups who face additional barriers in the labour market, such as disabled women and BME women.

Overall, women are 4.5 times more likely than men to be economically inactive – the Office for National Statistics’ term for people neither in or looking paid work – because of caring responsibilities.

The chart below shows that rates of economic activity due to caring responsibilities peak between the ages of 25 and 44, with more than one in 11 women aged 35-39 in this category.

The gap is highest in the late 20s, with women aged 25-29 more than 14 times more likely than male counterparts to be out of paid work because of caring commitments.

Source: TUC analysis of ONS Labour Force Survey, Q1 2024

This is perhaps unsurprising, with working mums much more likely to take time off work to look after kids.

It has a particularly large impact on pension saving, however. These are the years when workers typically have higher incomes than when they are just starting out, meaning their pension contributions are greater, but they are also far from retirement, so those contributions will remain invested for longer and have more time to grow.

The charts below show that BME women are particularly likely to be affected. While white women are four times more likely than men to be out of work looking after a loved one, the figure rises to 6.4 times more likely for BME women.

Previous TUC analysis has highlighted the impact this has on older BME women, with almost one in three who leave the labour market before they reach State Pension Age doing so because of caring responsibilities.

Source: TUC analysis of ONS Labour Force Survey, Q1 2024

And the chart below shows that people who are themselves disabled, are also much more likely to be out of the labour market because of caring responsibilities to others.

Disabled women are almost nine times more likely than non-disabled men to be in this position.

Source: TUC analysis of ONS Labour Force Survey, Q1 2024

Tackling the gender pension gap

The TUC has long called on governments to get serious about measuring the gender pension gap, and set out a plan to reduce it.

The last government did begin reporting on the gender pension gap (it’s measure looks only on the differences in workplace pension built up by men and women and put the gap at 35 per cent).

But this is only the first step, and the new government must build on this by setting out a comprehensive plan to reduce the gap

The recently announced Pensions Review is a great opportunity to do this, and we believe this should include an explicit strand on tackling pensions inequality.

We have previously made recommendations to bring more low paid and part-time workers into workplace pensions by expanding auto-enrolment, and to address the crisis in our social and childcare systems.

Time to give carers credit

But the figures above make clear that it will be difficult to improve women’s retirement incomes without improving the way our pension system recognises the value of unpaid care work.

This would require replacing the workplace pension contributions lost by those out of paid work, and there have been a number of proposals to introduce a Carers Credit that would do this.

We believe the most straightforward way of doing this is for those out of the labour market with a young child and registered carers to build up additional State Pension, on top of the flat-rate New State Pension.

This would be essentially reintroducing a feature that was removed in 2016. Before this point, people looking after children under 12 and registered for child benefit built up State Second Pension credit in addition to a credit towards the basic state pension.

When it was removed this credit was worth an extra £1.80 a week in pension in 2015-16 terms. So a worker who took five years out of paid work to raise kids, for example, would have built up almost £500 a year in additional State Pension over these years to plug the gap in their workplace pension contributions.

There is no single policy that would fix the gender pension gap, but introducing (or reintroducing) a Carers Credit would be a very significant step in the right direction.

‘This is not protest. It is organised, violent thuggery’

Prime Minister Keir Starmer delivered a statement from Downing Street yesterday:

I utterly condemn the far-right thuggery we have seen this weekend.

Be in no doubt: those who have participated in this violence will face the full force of the law. 

The police will be making arrests. 

Individuals will be held on remand. 

Charges will follow. And convictions will follow. 

I guarantee you will regret taking part in this disorder.

Whether directly or those whipping up this action online, and then running away themselves.

This is not protest. It is organised, violent thuggery. 

And it has no place on our street or online.

Right now, there are attacks happening on a hotel in Rotherham. 

Marauding gangs intent on law breaking. Or worse.

Windows smashed. 

Fires set ablaze.

Residents and staff in absolute fear. 

There is no justification – none – for taking this action. And all right-minded people should be condemning this sort of violence. 

People in this country have a right to be safe. 

And yet, we’ve seen Muslim communities targeted. 

Attacks on Mosques. 

Other minority communities singled out. 

Nazi salutes in the street. 

Attacks on the police.

Wanton violence alongside racist rhetoric. 

So, no, I won’t shy away from calling this what it is: Far-right thuggery.

To those who feel targeted because of the colour of your skin…

Or your faith…

I know how frightening this must be.

I want you to know this violent mob do not represent our country. 

And we will bring them to justice. 

Our police deserve our support, as they tackle any and all violent disorder that flares up. 

Whatever the apparent cause or motivation we make no distinction. 

Crime is crime.

And this government will tackle it. 

Thank you.

The Prime Minister will hold an emergency COBRA meeting this morning.

Mosques to be offered new emergency security

Mosques are being offered greater protection with new emergency security that can be rapidly deployed

The new rapid response process means mosques at risk of violent disorder can be offered additional security personnel, providing communities with vital support and reassurance. This will boost the work already being done by local police forces to protect these important places of worship.  

Under the new process now in place, the police, local authorities and mosques can ask for rapid security to be deployed, protecting communities and allowing for a return to worship as quickly as possible. 

This announcement will build on the existing Protective Security for Mosques Scheme, with up to £29.4 million already available this year to fund security at mosques and Muslim faith schools. 

Home Secretary, Yvette Cooper said: “Britain is a proud and tolerant country, and nobody should make any excuses for the shameful actions of the hooligans, thugs and extremist groups who have been attacking police officers, looting local shops or attacking people based on the colour of their skin. 

“In light of the disgraceful threats and attacks that local mosques have also faced in many communities, the government is providing rapid additional support through the Protective Security for Mosques Scheme, alongside the support from local police forces and we repeat that anyone involved in this disorder and violence will face the full force of the law. 

“As a nation we will not tolerate criminal behaviour, dangerous extremism, and racist attacks that go against everything our country stands for.”

The Government has made clear that targeted attacks on Muslim communities will not be tolerated. All those involved in violent disorder, including attacks on the police, local communities, arson and looting should expect to face the full force of the law. 

The new arrangements have been deployed and are already providing additional security for mosques across the country this weekend. The scheme also remains open for general applications and all those eligible are encouraged to apply.

TUC ANTI FAR RIGHT STATEMENT

We stand together in peace and solidarity with the people of Southport following the horrific events that took place on Monday 29th July have left us all in shock.

Our thoughts are with the families and loved ones of those who have died and are receiving treatment for their injuries. They should be the priority for everyone who cares about what has happened

Instead some have sought to use the tragic event in Southport to divide and spread hate – based on mistruths and false information. Far right thugs have taken to the streets of Southport, Hartlepool and London to attack Police and emergency service workers, to target Muslim communities with xenophobic hatred and to despoil the memories of those whose lives were so tragically cut short.

We must not let them get away with their lies and division. Trade unions have always been at the heart of efforts to unite communities and stand against hate. But the challenge feels even more urgent now.

Whilst what took place in Southport leaves a dark shadow, we have seen some of the best of us. Our emergency service workers who rushed to danger, who provided and continue to provide life-saving care. Our public service workers providing ongoing care and support and practical help. Our teachers and support staff in the schools attended by young people affected and our community organisations who have stepped up to help and provide counselling.

So many other individuals, local businesses and organisations who are giving their time and expertise. They all deserve our gratitude. They have discharged their duty professionally, diligently and with compassion for their community.

Once again, it is a diverse range of front-line workers and community activists who have stepped up to repair the damage – material, physical and emotional.

Southport and our communities across the country do not need to meet violence with further violence. Whipping up hate and fear is not acceptable.

As trade unions, we will continue to work with our members in workplaces across the country, to provide practical support and solidarity and defeat the narrative of hate.

Our unions call for an end to the violence and intimidation, and for all those who perpetrate these acts to be brought to justice.

Unity is our strength, and we will stand firm against those that aim to pit different workers and communities against each other.

TUC celebrates 50th anniversary of the Health and Safety at Work Act

  • The Health and Safety at Work Act received Royal Assent on 31 July 1974 
  • The TUC estimates there have been at least 14,000 fewer workplace fatalities since 1974  
  • More than a decade of cuts to health and safety enforcement is endangering workers, says TUC 

The TUC is championing the Health and Safety at Work Act (HSWA) as life-saving legislation as trade unions mark the 50th anniversary of its Royal Assent today (Wednesday). 

The HSWA was the first legislation to mandate health and safety in all workplaces. 

Despite the major life-saving progress made since the Act became law, Britain still averaged more than 100 work-related deaths each year for the past decade. 

The TUC is calling on the new government to build on the success of the Act, and to provide the fresh funding needed to consign all work-related deaths to history. 

The Health and Safety Act 1974 

In 1970, Employment Secretary Barbara Castle commissioned Lord Robens to chair a committee to review provisions for the health and safety of workers. 

The Robens Report, published in 1972, laid the groundwork for what became the Health and Safety at Work Act. And it recommended a new health and safety authority, which was enabled by the Act and became the Health and Safety Executive. 

In 1977, the Act was accompanied by the Safety Reps and Safety Committees Regulations, which gave rights to trade union safety reps (for example, the right to inspect workplaces).  

Lives saved since 1974 

The Robens report stated that “Every year something like 1,000 people are killed at their work in this country”.  

In 1974, when the current official data begins, there were 651 workplace fatalities. From 1974 onwards, fatalities steadily declined.  

Since 2013, there have been fewer than 150 fatalities in every year. In 2023 there were 138 fatalities but there has not yet been a year with fewer than 100 fatalities. 

Based on data from the Robens report and the official data since 1974, the TUC estimates that there have been at least 14,000 fewer fatal injuries in the workplace since the Act became law. 

Without the HSWA the number of deaths relating to occupational illness would have been higher too. 

The TUC says that while the HSWA has played a major role in the reduction in workplace fatalities, it was not the only factor. Britain’s economic transition away from heavy industry to service sectors is also likely to have reduced workplace fatalities, as have additional rights for unions to act in workers’ defence. 

Raising standards and reducing fatalities and injuries 

As the new government seeks to boost housebuilding and to revive Britain’s manufacturing base with the Green Prosperity Plan, the TUC says that workers must have a higher standard of health and safety protection than in previous generations. 

The TUC is calling for the government to: 

  • Restore adequate funding to the Health and Safety Executive 
  • Take action to speed up the removal of asbestos from all workplaces  
  • Protect the role of trade union health and safety reps, and allow unions to enter and organise workplaces that lack union representation 
  • Foster a culture of positive industrial relations so that employers and workers both benefit from a collaborative approach to improving health and safety 

TUC General Secretary Paul Nowak said: “The Act made it a duty for every employer to protect the health and safety of staff. Thousands of lives have been saved since then. It shows how valuable government can be when put at the service of working people. 

“All deaths, injuries, and illnesses at work are preventable. But workplace inspections and prosecutions have plummeted because of Conservative cuts. And more than a hundred people died from work-related injuries last year.  

“We need fresh funding and fresh thinking. Government, unions and employers must work together to raise workplace safety to the next level. Every worker deserves to be safe, wherever they work and whatever they do.” 

From austerity to crisis: Covid-19 Inquiry highlights UK’s pre-pandemic weaknesses, says TUC

Just three days short of its second anniversary, the Covid-19 Public Inquiry published the report from the Module One investigation into the resilience and preparedness of the United Kingdom (writes TUC’s NATHAN OSWIN).

The report highlights the devastating consequences of austerity in the decade that preceded the pandemic and the risk of vulnerability in the UK population.

The Impact of austerity on public services

Inquiry Chair, Baroness Hallett, states plainly that, “In short, the UK entered the pandemic with its public services depleted, health improvement stalled, health inequalities increased, and health among the poorest people in a state of decline.” This blunt assessment underscores the critical condition of the nation’s public services as they faced the unprecedented challenges of the Covid-19 pandemic.

The role of the TUC and evidence from frontline workers

As Core Participants in the Inquiry, the TUC played an integral role in the process, working with our unions to provide the evidence that ten years of under-investment and real terms funding cuts to public service in the run up to the Inquiry left key services struggling to cope.

“Public services, particularly health and social care, were running close to, if not beyond, capacity in normal times” the report states, a statement that doctors, nurses, porters and social care workers have been telling us all. 

The Inquiry also heard that “there were severe staff shortages and that a significant amount of the hospital infrastructure was not fit for purpose. England’s social care sector faced similar issues. This combination of factors had a directly negative impact on infection control measures and on the ability of the NHS and the care sector to ‘surge up’ during a pandemic.”

A call to avoid past mistakes

The report is both a damning indictment and a call to never repeat the mistakes of that decade – a desperate reminder of the need to invest in our public services.

And while the report is not naive about the costs needed to make the UK more resilient ahead of the next pandemic – a matter of when not if – it reaches  the conclusion that “the massive financial, economic and human cost of the Covid-19 pandemic is proof that, in the area of preparedness and resilience, money spent on systems for our protection will be vastly outweighed by the cost of not doing so”.

Addressing health inequalities

What’s more, the Inquiry is crystal clear as to the price we pay for inequality across our communities. It notes that at the outset of the pandemic, the UK had “substantial systematic health inequalities by socio-economic status, ethnicity, area-level deprivation, region, social excluded minority groups and inclusion health groups”.

And Baroness Hallett’s report correctly states that these inequalities weakened the ability of the UK to cope, stating that “resilience depends on having a resilient population. The existence and persistence of vulnerability in the population is a long-term risk to the UK.’ 

Recommendations for the future

The recommendations themselves speak of the need to engage with wider society for planning on how we handle a crisis and to take into account the “capacity and capabilities of the UK”. 

No one knows the capacity and capabilities of our public services better than the staff that deliver them and the TUC and its affiliated unions stand ready to assist the government in this vital work.

Conclusion: Building a resilient future together

It is by working in partnership – with proper resources going into our public services – that we can truly learn the lessons this report sets out and secure the resilience and preparedness that the UK needs for a future full of challenges.

TUC: ‘Huge support’ for Labour’s New Deal workers’ rights plans

Voters are calling out for a significant boost to workers’ rights, post-election polling conducted for the TUC has found

Labour’s historic election win came off the back of UK voters overwhelmingly feeling that things were getting worse. 

Whether it was the economy, the NHS, public services or personal finances, people felt things were going the wrong way

For 14 years a succession of Conservative governments put workers’ rights in reverse, making it harder for people to secure decent pay and conditions.

While the number of workers in insecure work soared to 4.1m, the Tories brought in punitive trade union laws, introduced tribunal fees and doubled the qualifying period for unfair dismissal protection.

This led to a huge  63% of the electorate feeling that the Conservative party was no longer on the side of working people. 

What is coming over the horizon is Labour’s positive New Deal for working people, an ambitious set of reforms that would transform the lives of all working people.

A poll of 3,000 voters commissioned by the TUC shows huge backing across the political spectrum for improving protections at work and for the fundamental policies that underpin Labour’s New Deal for working people. 

The polling reveals what voters thought about Labour’s key employment right policies: 

Implementing a real living wage: Three-quarters (77%) of 2024 voters support Labour’s commitment to ensure that the national minimum wage rises to be a real living wage. 

Strengthening unfair dismissal: Nearly 2 in 3 (64%) of all 2024 election voters support the day one right to protection from unfair dismissal.

Making sick pay a day 1 right: Nearly 7 in 10 voters (69%) back Labour’s plan to make statutory sick pay available from the first day of sickness.

Ban on fire and rehire: Two-thirds (66%) of voters support a ban on fire and rehire.

Ban on zero hours contracts: Nearly 7 in 10 (67%) voters support banning zero-hours contracts by offering all workers a contract that reflects their normal hours of work and compensation for cancelled shifts. 

And there is majority support for collective rights too, including: 

Union access to workplaces: 2024 voters by a margin over two to one (46% in favour, 19% against) support giving trade unions a right to access workplaces to tell workers about the benefits of joining a trade union. 

Voters across the political spectrum want work to pay and to feel secure and respected in their jobs. Labour’s workers’ rights plans are hugely popular, and this poll should give ministers confidence to get on with delivering them in full. 

Working people want a government that is on their side and that will improve the quality of work in this country. After 14 years of stagnating living standards, the UK needs to turn the page on our low-rights, low-pay economy that has allowed good employers to be undercut by the bad.

Trade union campaigns and ideas formed the bedrock of the New Deal for working people. Trade unions will be working flat out with the new government to see these commitments come to fruition.

TUC: How Labour can govern for working people

The trade union movement will work with Keir Starmer to deliver change

What an extraordinary moment in British politics (writes TUC General Secretary PAUL NOWAK). Labour back in power with a near-record majority. The Conservatives brutally ejected from office. A dozen cabinet members gone. A red wave in Scotland at the SNP’s expense. But while it’s easy to get carried away by the seismic nature of this election – we cannot afford to be distracted. We have a country to fix.

When I congratulated Keir Starmer this morning my message to him was clear. The trade union movement stands ready to work with the new government to repair and rebuild Britain – and to deliver the change working people desperately need. After 14 years of wretched Tory rule and chaos, I am not blind to the size of the task this incoming government faces.

The Conservatives have left behind a trail of destruction for all to see. Stagnant growth and wages. Rising in-work poverty. Broken public services. The charge sheet goes on and on. But despite all of the damage wrought, I am optimistic. After nearly a decade and a half in opposition, Labour can finally begin transforming the country – an urgent and necessary challenge that must be grasped with both hands. So where should we start?

First and foremost, we need to get our economy growing again. Unions and business have been crying out for years for a proper industrial strategy. The Green Prosperity Plan starts us on the road to economic recovery. And it will be a breath of fresh air to work with ministers who are actually serious about protecting and creating good jobs, and boosting skills and productivity.

But securing growth alone is not enough – we also need better living standards. Labour needs to act urgently to make work pay. We currently have over four million people who are trapped in jobs that offer little or no financial security. This is a national disgrace.

The UK’s long experiment with a low-wage, low-rights economy has been terrible for productivity and workers alike. Labour’s New Deal for Working People – delivered in full – will help end the Tories’ race to the bottom on employment standards.

A race to the bottom that has allowed good employers to be undercut by the bad, and scandals like the illegal sacking of 800 seafarers at P&O Ferries go unpunished. Labour’s plans will be a genuine gamechanger. Employment rights from day one. A ban on zero-hours contracts. An end to fire and rehire. New rights for unions to access the workplace. And the scrapping of anti-union legislation.

These are all part of a comprehensive new package of rights that will be good for workers, good for businesses and good for the UK economy. Inevitably there will be some siren voices in the business community who will seek to delay and water down this legislation. But it is vital Labour stays the course and ignores the doomsayers.

All the tired arguments that have been made against improved rights and protections at work echo those used against the minimum wage – now widely acknowledged to be one of the great policy successes of the last 25 years.

The naysayers were wrong then and they are wrong now. It is also vital that immediate work begins on repairing our crumbling public realm. At the heart of the pressures on our schools, hospitals, prisons and social care system is a huge workforce crisis. Across the NHS and social care alone there are nearly 300,000 staffing vacancies and in education the number of teaching vacancies has more than doubled in the past three years.

With morale at rock bottom – after more than a decade of Tory vandalism and neglect – Labour has the chance to signal a new direction of travel. We’ve already seen really encouraging commitments on scrapping tax breaks for private schools to fund new teachers in the state sector, and on closing non-dom loopholes to help bring down waiting lists. It’s no secret though that I want the party to go further and that we explore all funding options for rebuilding our public services.

The TUC has previously called for a national conversation on taxing wealth and I remain convinced that policies like equalising Capital Gains Tax with the taxes paid on earnings could bring in much-needed revenues. People voted in this election because they wanted real change – and Reform’s populist insurgence is a timely warning of what happens when governments fail to act.

And this question of delivery is the crux of the matter. After 14 years of national decline the country has finally got the Labour government it desperately needs. I know how ambitious Keir Starmer and his team are to improve working people’s lives, and the trade union movement wants to work with them.

Of course there will be moments of tension. That comes with being a critical friend. Our job is to speak up for working people and our members and to make sure their voices are heard at the heart of government – even when the message is difficult.

But the prospect of national renewal is real. Decent jobs, strong public services, a brighter, fairer future for all our children. The work will be hard and it starts today – but together we can realise a better future.  

TUC: Child poverty in working households has increased by over 1,300 a week since 2010

Analysis shows number of kids growing up in poverty in working households increased by 44% (+900,000) between 2010 and 2023

  • Union body says a “toxic combination” of pay stagnation, rising insecure work and cuts to social security have had a “devastating impact on family budgets” 
  • TUC calls for urgent economic reset and for a government that “makes work pay” 

Child poverty in working households has increased by over 1,300 a week, on average, since 2010 – according to new TUC analysis published yesterday. 

The analysis shows that the number of kids living in poverty with at least one parent in work increased by 900,000 (44%) between 2010 and 2023 – the equivalent to 1,350 a week. 

The TUC says in 2023 there were 3 million kids in working households living below the breadline in the UK. 

Children growing up in poverty in working households now account for: 

  • 69% of all children in poverty 
  • 24% of all children in working households  

“Toxic combination” 

The TUC says that a “toxic combination” of wage stagnation, rising insecure work and cuts to social security have had a “devastating impact” on family budgets. 

Real wages are still worth less today than in 2008 and the union body estimates that had they grown at their pre-crisis trend since the Tories took power the average worker would be over £14,000 a year better off. 

And separate analysis from the TUC shows that the number of people in insecure work, low-paid work has increased by nearly 1 million during the Conservatives’ time in office to a record 4.1 million. 

Economic reset 

The TUC says Britain urgently needs an economic reset. 

It highlighted the importance of Labour’s New Deal for Working People and Green Prosperity Plan in creating good jobs and helping make work pay. 

And it called on political parties to make reducing child poverty a national priority. 

TUC General Secretary Paul Nowak said: “No child in Britain should be growing up below the breadline. 

“But under the Conservatives we have seen a huge in rise in working families being pushed into poverty. 

“A toxic combination of pay stagnation, rising insecure work and cuts to social security have had a devastating impact on family budgets. 

“We urgently need an economic reset and a government that will make work pay. Reducing child poverty must be a priority in the years ahead.” 

TUC – number of people in insecure work reaches record 4.1 million

1 in 8 workers now in employment that offers little or no security, says union body

  • Insecure work has risen nearly three times faster than secure forms of employment since 2011, analysis shows 
  • TUC accuses Conservatives of presiding over a “race to the bottom” on employment standards 
  • Union body says New Deal for Working People urgently needed 

The number of people in insecure work has reached a record high of 4.1 million, according to new TUC analysis. 

The analysis of official statistics shows the number of people in precarious employment – such as zero-hours-contracts, low-paid self-employment and casual/seasonal work – increased by nearly one million between 2011 and 2023. 

Over that period insecure work rose nearly three times faster than secure forms of employment. While the numbers in insecure work increased by 31%, those in secure employment increased by just 11%. 

The TUC estimates that 1 in 8 workers in the UK are now employed in precarious employment. However, in some parts of the country, such as the West Midlands and the South West, this number has risen to 1 in 7. 

Low-paid industries have fuelled most of the growth 

The growth in insecure work since 2011 has been fuelled mainly by lower-paid sectors of the economy. 

In care, leisure, service occupations and elementary occupations the number of people in precarious employment has rocketed by over 600,000 (+70%) since 2011. 

Insecure work pay penalty 

Today’s analysis also shows that people in insecure work face a severe pay penalty compared to other workers. 

People on zero-hours contracts earn over a third (35%) less an hour, on average, than workers on median pay. 

And the pay gap between workers in seasonal (-33%) and casual (-37%) work and median earners is also stark. 

New Deal “urgently needed” 

The TUC says the huge rise in insecure and low-paid work highlights the need for boosting workers’ rights and making work pay. 

The union body says Labour’s New Deal for Working People would be a “game changer” if delivered in full – with the biggest upgrade in workers’ rights in a generation. 

In April the Chartered Management Institute polling of managers revealed strong support for key New Deal policies:   

  • More than 4 in 5 (82%) managers said granting workers fundamental day one rights was important.   
  • 3 in 4 (74%) managers said a ban on zero-hours contracts was important, and 
  • 3 in 4 (74%) managers said the publication of ethnicity and disability pay gaps was important. 

The polling also revealed that 80% managers believe workers’ rights should be a top priority in national policies, while 83% said such changes can positively impact workplace productivity. 

TUC General Secretary Paul Nowak said: “We need a government that will make work pay. But over the last 14 years we have seen an explosion in insecure, low-paid work. 

“The UK’s long experiment with a low-rights, low-wage economy has been terrible for growth, productivity and living standards. 

“Real wages are still worth less than in 2008, and across the country people are trapped in jobs that offer little or no security.” 

On the need for change, Paul added: “We must end the Conservatives’ race to the bottom on employment standards.  

“The New Deal is an opportunity for a reset. Delivered in full – it would be a game changer for millions of working people. 

“As well as preventing workers from being treated like throw-away labour it would stop good employers from being undercut by the bad.” 

If delivered in full Labour’s New Deal will:  

  • Strengthen collective bargaining by introducing fair pay agreements to boost pay and conditions – starting in social care.   
  • Introduce ethnicity pay gap reporting and disability pay gap reporting.   
  • Ban zero-hours contracts to help end the scourge of insecure work.  
  • Give all workers day one rights on the job. Labour will scrap qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave.   
  • Ensure all workers get reasonable notice of any change in shifts or working time, with compensation that is proportionate to the notice given for any shifts cancelled or curtailed.  
  • Beef up enforcement by making sure the labour market enforcement bodies have the powers they need to undertake targeted and proactive enforcement work and bring civil proceedings upholding employment rights. 

TUC: Government must end its cruel assault on sick and disabled people

The latest government announcement on reforms to financial support for those with ill health or disability is misleading rhetoric. The lives of those with ill health or disability are completely misrepresented, and the language they use is divisive, (writes TUC’s ANJUM KLAIR).

Mel Stride announced the consultation on reform of Personal Independent Payments (PIP). Two immediate observations from us are:   

  • The Government has deliberately confused the purpose of this benefit in order to ramp up its benefit scrounger rhetoric. PIP is not an out-of-work benefit: disabled people in full-time employment can be, and are, assessed as eligible for PIP. It assesses whether someone’s impairment or health conditions affects their day-to-day life and is intended to cover some of the additional costs incurred as a result of being disabled. It is not for assessing if you are capable of work- or work-related activity.  
  • The idea that you can claim PIP for mild mental illness is untrue. The criteria for accessing PIP is stringent. You have to be suffering from severe mental illness. It is a complex application process and have to provide medical evidence. 

If the current data is showing rising numbers of those with severe depression and anxiety claiming PIP, you don’t change the eligibility criteria to reduce claimant numbers – you look at the underlying drivers of ill health.    

More than a decade of austerity under the Conservatives has resulted in crumbling public services. 

NHS waiting lists are at record highs, food insecurity and destitution has increased, and poverty levels are rising. This will inevitably affect physical and mental health. Data shows life expectancy and healthy life expectancy falling, and this is more profound in deprived areas.      

The approach by government is to blame individuals. Only recently the Prime Minister attacked those too sick to work, by saying UK had a sick note culture, yet the data on workplace sickness absence does not suggest any substantial challenges.

And again, government conflates two separate areas, sick notes look at short-term illness for those in work and not long-term illness and disability.  It is the rise in long-term sickness and disability which is alarming.  

The ideas proposed in the consultation also include the insulting suggestion that disabled people are not to be trusted with spending their benefits on essential support. As it moves away from a fixed cash benefit and proposes to reimburse for extra costs, this also assumes that disabled people have the money to pay up front for this.

The consultation also proposes accessing treatments rather than receiving benefits for ill health, yet it is the lack of access to treatment which is exacerbating the increase in ill health.  The long delays are well documented. Just for mental health support there is around1.9 million people waiting for support in England,        

The PIP consultation also adds a further layer of confusion for people not working due to ill health, as the government already set out a plan for health and disability benefits reform last year.  This is proposed for the new Parliament, and includes:    

  • The Work Capability Assessment (WCA) to be abolished and eligibility for the health top-up in Universal Credit (UC) ( in this case the health element) will be passported (i.e. approved) via PIP.  
  • The current UC Limited Capability for Work and Work-Related Activity (LCWRA) element will be replaced with a new UC health element.  
  • Introduce more tailored conversations for claimants with work coaches, to enter suitable employment.  

While we have issues with the validity of WCA decisions, it is supposed to assess people’s ability to work, while PIP clearly does not do this. This proposed change would amount to a huge financial cut to those not well enough to work. The IFS estimates that one million disabled or seriously unwell people who can’t get PIP would lose out by £350 a month. 

Wider problems in the Government’s plan include the proposed introduction of a new personalised health conditionality approach. Disabled people will also face a higher risk of sanctions, as at present people currently identified as being unable to work and prepare for work are protected but could lose this right under the changes.   

Such measures do not consider the structural barriers that stop disabled people from entering into the workplace, such as discrimination from employers, a failure to put in place reasonable adjustments, and inaccessible transport. The result will be many disabled people whose health makes it difficult or impossible to carry out work activity without a realistic chance of getting a job, being threatened with sanctions. 

Separately the Government has made changes to descriptors in the WCA to apply from September 2025 for new claimants. As a result, 424,000 fewer people are expected to be assessed as having limited capability for work and work-related activity by 2028 to 2029.

The theme by the Conservative government is to constantly reduce eligibility to cut social security entitlement for disabled people or those with ill health. Government needs to end this cruel assault on sick and disabled people.  

TUC: It’s time to apply the lessons of the minimum wage

Sunday 1st April marked the 25th anniversary of the UK getting a minimum wage (writes TUC General Secretary PAUL NOWAK).

Nowadays when we think of the national minimum wage (NMW), we think of what is roundly accepted as one of the great policy successes of our time. But we shouldn’t kid ourselves that there was unanimity about the need to raise wages.  

Britain was full of employers and employers’ organisations predicting the minimum wage would cause mass unemployment and economic ruin.

The CBI warned a NMW “could result in rising prices, business closures and unemployment”. That it would “undermine flexibility and was a poor way to tackle poverty”. They wanted all new employees to be exempted from the minimum wage for the first six months! 1

They were wrong!

The minimum wage started off at £3.60. With no loss of jobs, and no economic meltdown. And in recent years, it’s gone up substantially. And it’s done so with no negative impact on jobs.

History proved all those doomsday warnings emphatically wrong. And I think there are lessons there for all of us. So here’s three: 

First: the NMW was a bold policy and we need to be equally bold for its future. 

The TUC is clear, we now need to set the bar higher. That means ministers should set a bolder Low Pay Commission remit:

  • A target of 75 per cent of median pay. 
  • Getting us faster towards a £15 an hour minimum wage for all. 
  • Raising the pay of millions 
  • Making the minimum wage a real Living Wage. 

Second: sometimes we have to face down those whose instinctive reaction is to say no to measures that improve the lives of working people.  

This is vital if we are going to deliver a much-needed new deal for working people in this country. 

  • 1 in 9 workers are in insecure work. 
  • Record numbers of young people on zero hours contracts. 
  • Seventy per cent of the kids who live in poverty have working parents. 

The New Deal is the right thing to do. Not just morally, but economically. It will establish a level playing field. Stop decent employers from being undercut by the cowboys. And make sure that everyone has a secure job they can build a life on. 

Just like the minimum wage, good employers have nothing to fear from the New Deal. But that hasn’t stopped some employers organisations’ warning of an economic apocalypse if Labour’s New Deal was made law.  And the arguments are exactly the same as they were 25 years ago. It will cost jobs. Put employers out of business. Reduce flexibility. 

The then British Hospitality Association said back in 1997 that the NMW would destroy 32,000 jobs in the industry2 . Spoiler alert: it didn’t!

They were wrong then, and they are wrong now. That’s why Labour should resist the out of touch, out of date siren voices from the 90s. Now is the time to forge a new political consensus on tackling the scourge of insecure work and deliver the New Deal in full. 

Third and final lesson. 

The NMW has succeeded because it has been underpinned by what might be unfashionably called social dialogue.  Employers, unions, supported by independent academics, working with government to deliver a minimum wage. We could do with more of that approach today.

Our so-called flexible labour market has failed far too many people. It’s led to massive rewards at the top and stagnant wages for everyone else. Unleashed epic insecurity and in-work poverty. And actively undermined our productivity. 

So it’s time for a new approach. 

Time to apply the lessons of the minimum wage. Time for the New Deal for workers that Britain needs.