Tag: TUC

Child poverty in working households has increased by 800,000 under Tories, says TUC

  • Number of children living below the breadline – despite being in a working family – has increased by 38% since decade began 
  • London, East of England and West Midlands have suffered biggest increases 
  • Government policies have driven majority of rise, says TUC  

poverty family JRF

The number of children growing up in poverty in working households has risen by 800,000 since 2010, according to new TUC analysis published today. 

The analysis reveals that child poverty in working families rose to 2.9 million in 2018 – an increase of 38% since the start of the decade.

In 2010, 1 in 5 (19%) children in working households were growing up in poverty. In 2018 this had increased to 1 in 4 (24%).

The analysis shows that Westminster government policies account for the majority of the increase in-work poverty. More than 485,000 children (in working households) have been pushed below the breadline as a direct result of the government’s in-work benefit cuts. 

The TUC says that other key factors behind the rise in child poverty are: 

  • Weak wage growth
  • The spread of insecure work
  • Population growth
  • The rise in the number of working households hasn’t been enough to lift families out of poverty.

London has suffered the biggest increase in child poverty (+68%) among working families followed by the West Midlands (+56%) and East England (+56%).

In 2016 the Conservatives abolished the Child Poverty Act and scrapped targets to reduce poverty.

TUC General Secretary Frances O’Grady said: “No child in Britain should be growing up in poverty. But millions of parents are struggling to feed and clothe their kids. That is not right.

“The Conservatives’ cuts to in-work benefits have come at a terrible human cost. As too has their failure to tackle insecure work and get wages rising across the economy.

“We need a government that puts working families first, not wealthy donors and hedge funds.”

The TUC is calling on all political parties to: 

  • Raise the minimum wage to £10 an hour
  • Stop and scrap Universal Credit
  • Ban zero-hours contracts
  • Give workers new rights to join unions and bargain for better pay and conditions across industries

Increase in number of children living in poverty in working households since 2010 (nation/region) 

Region Number of children in poverty in 2010 Number of children in poverty in 2018 Extra children in poverty (000s) Extra children in poverty (%)
North East 71,362 108,775 37,413 52
North West 241,300 335,190 93,890 39
Yorkshire and Humberside 206,827 217,571 10,744 5
East Midlands 124,690 184,085 59,395 48
West Midlands 191,504 299,510 108,006 56
Eastern England 171,637 268,516 96,879 56
London 362,448 609,002 246,554 68
South East 248,435 340,996 92,561 37
South West 179,550 215,403 35,853 20
Wales 124,102 119,693 -4,409 -4
Scotland 112,075 121,925 9,850 9
Northern Ireland 53,404 59,690 6,286 12
UK total 2,087,334 2,880,356 793,022 38

Source: Landman Economics Analysis and modelling for the TUC 

Proportion of children in poverty in working households 

Region 2010 (%) 2018 (%)
North East 17.3 25.5
North West 20.2 25.3
Yorkshire and Humberside 22.7 22.0
East Midlands 15.5 21.1
West Midlands 19.9 27.9
Eastern England 15.8 22.7
London 25.9 33.9
South East 15.5 20.0
South West 19.7 21.4
Wales 24.6 22.0
Scotland 13.3 15.1
Northern Ireland 15.2 15.7
UK total 19.0 23.8

Source: TUC analysis of HBAI data 

Us and Them: Pay for top earners “back in the fast lane”, TUC analysis reveals

  • Britain’s highest earners have enjoyed 7.6% real pay rise over last two years
  • Real wages have remained flat for those on average pay
  • High earners would be boosted further by Boris Johnson’s £9.6bn tax “giveaway”, says TUC

Pay for the top 1% of earners has increased faster than for any other income group over the past two years, according to new TUC analysis,

The analysis shows that pay for Britain’s highest earners (those earning £63 an hour or more – or £2,300 and above for a full-time week) increased by 7.6% in real terms between 2016 and 2018.

By contrast, real wage growth for the typical worker increased by just 0.1% over the same period.

The TUC warned that the gap between those at the top and average workers would get worse under plans floated by Boris Johnson for tax cuts for higher earners – that would cost the Treasury around £9.6bn a year.

The union body says no serious attempt has been made this decade to rein in excessive pay, with Theresa May rowing back on her promise to put workers on company boards.

Average pay is still worth less in real terms than before the financial crisis, with UK workers suffering the longest pay squeeze since Napoleonic times.

TUC General Secretary Frances O’Grady said: “While millions struggle with Britain’s cost of living crisis, pay for those at top is back in the fast lane.

“We need an economy that works for everyone, not just the richest 1%.

“Boris Johnson’s promised tax giveaway to high earners would only make things worse. The prime minister is focused on helping his wealthy mates and donors – not working people.”

TUC backs Global Climate Strike on 20th September

TUC conference yesterday unanimously passed a motion to support the school student Global Climate Strike on 20th September and has called on TUC affiliate Unions to organise a 30 minute work day campaign action to coincide with the school students strike on 20th September. Continue reading TUC backs Global Climate Strike on 20th September

TUC calls for ban on class discrimination

  • Graduates from wealthier backgrounds more than twice as likely to start on £30,000 as working-class peers 
  • Unions want new legal measures to tackle barriers holding back working-class people 
  • Britain is “wasting skills and talent”, says TUC 

https://youtu.be/nxpZkKKbDgA

The TUC has called for new legal measures to tackle class discrimination in the workplace. 

The call comes as a new TUC report reveals that graduates from wealthier backgrounds are more than twice as likely to be on a £30,000 starting salary than those from working-class backgrounds.

The TUC wants the government to: 

  • Make discrimination on the basis of class unlawful, just like race, gender and disability
  • Introduce a legal duty on public bodies to make tackling all forms of class and income inequality a priority
  • Make it compulsory for employers to report their class pay gaps

The TUC says that without new anti-discrimination laws people from working-class backgrounds will continue to face unfair barriers at work and in society.

These include direct forms of discrimination, such as employer bias during job applications and interviews. And there are indirect forms of discrimination, such as the use of unpaid internships as a gateway into jobs.

As well as class discrimination, the report looks at other forms of disadvantage experienced by working-class people, such as low pay and the greater impact of austerity on working-class households.

The TUC says that stronger workplace rights are needed to counter the class privilege that remains in Britain today. Every worker must have the freedom to meet with a union at their workplace. And there must be stronger rights for workers to speak up on pay and conditions through trade unions.

TUC General Secretary Frances O’Grady said: “If you’re from a working-class family, the odds are still stacked against you.  

“Everyone knows that getting that dream job is too often a case of who you know, not what you know.

“I want to issue a challenge to politicians. It’s high time we banned discrimination against working class people.

“This country is wasting some of our best skills and the talent. And if we don’t get change fast, it’s not just workers who will lose out – Britain will.

“Let’s have a new duty on employers to stamp out class prejudice once and for all.”

190904 class report

“Broken economy” is driving record levels of household debt, warns TUC

Low pay, insecure work and austerity are feeding a growing debt crisis, the TUC has warned.

New TUC analysis published today shows that:

  • Unsecured debt per household rose to £15,880 in the first quarter of 2019, up £1,160 on a year earlier.
  • Over half of households report having unsecured debt, most commonly in the form of credit card debt (60%), overdraft (28%), personal loans (25%) and car finance (25%).
  • Young people are disproportionately likely to be in debt. 70% of 18-34 year-olds report having a type of unsecured debt. This drops to 33% among people over 65.

The TUC believes that persistent low pay is the key driver of household debt. Real wages are still lower than they were before the 2008 crisis and working families are struggling to make ends meet without going into the red.

The latest analysis also shows that of those households with unsecured debt:

  • 1 in 5 say repayments are a “heavy burden on their finances”.
  • 1 in 7 (14%) have fallen more than two months behind on repayments in the last year.
  • 45% don’t feel that they have enough money set aside for emergencies.

TUC General Secretary Frances O’Grady said: “Our broken economy is forcing working families deep into debt.

“Low pay, insecure work and austerity have pushed millions of households to the financial cliff edge. Big corporations are raking in huge profits at working people’s expense. And successive governments have done nothing to avert the crisis.

“It’s time to reset the balance of power in our workplaces and our economy. Government must make more employers negotiate pay and conditions with unions. That will lift wages for everyone and stop working families having to rely on credit cards and overdrafts to get through the month.”

The TUC has published new proposals to ensure that workers get the chance to negotiate better pay and conditions through trade unions. These include:

– unions having access to workplaces to tell workers about the benefits of trade union membership, following the model in New Zealand

– new rights to make it easier for unions to gain the right to negotiate at workplace level

– new rights for unions to negotiate right across sectors, starting with hospitality and social care

The TUC is also calling for:

  • a £10 National Minimum Wage to be introduced as quickly as possible
  • a ban on zero-hours contracts, and a crack down on insecure work that means people don’t know how much they’ll earn from one week to the next