New analysis shows pay gap between non-disabled and disabled workers is now 14.6% – higher than it was a decade ago
Disabled women face even bigger pay penalty of 30% – £3.73 an hour
TUC says Labour’s New Deal for Working People would be a “game changer” for disabled workers, introducing mandatory disability pay gap reporting and a day one right to flexible work
New analysis published by the TUC yesterday shows that non-disabled workers earn around a sixth (14.6%) more than disabled workers
The analysis reveals that the pay gap for disabled workers across the board is £1.90 an hour, or £66.50 per week – over what the average household spends on their weekly food shop (£62.20).
That makes for a pay difference of £3,460 a year for someone working a 35-hour week – and means that disabled people effectively work for free for the last 47 days of the year and stop getting paid today, on the day the TUC has branded Disability Pay Gap Day.
“Zero progress” on disability pay gap
The pay gap has fallen since last year, when the overall pay gap was £2.05 (17.2%) an hour.
The new analysis shows that the disability pay gap is now higher than it was a decade ago (13.2% in 2013/14) when the first comparable pay data was recorded.
And the gap is only slightly lower than when the TUC first launched Disability Pay Gap Day using 2016/17 data (when it was 15.0%).
Disability pay gap by gender and age
The new TUC analysis reveals that disabled women face the biggest pay gap. Non-disabled men are paid on average 30% (£3.73 an hour, £130.55 a week, or £6,780 a year) more than disabled women.
The research also shows that the disability pay gap persists for workers for most of their careers. At age 25 the pay gap is £1.73 an hour hitting a high of £3.18 an hour, or £111.30 a week, for disabled workers aged 40 to 44.
National, regional and industrial disability pay gaps
The analysis looked at pay data from across the country and found disability pay gaps in every region and nation of the UK.
The highest pay gaps are in Wales (21.6% or £2.53 an hour), followed by the South East (19.8% or £2.78 an hour) and the East of England (17.7% or £2.30 an hour).
The research found that disability pay gaps also vary by industry. The biggest pay gap is in financial and industrial services, where the pay gap stands at a huge 33.2% (£5.60 an hour).
Unemployment
Not only are disabled workers paid less than non-disabled workers, they are also more likely to be excluded from the job market.
Disabled workers are twice as likely as non-disabled workers to be unemployed (6.7% compared to 3.3%).
And the analysis shows disabled BME workers face a much tougher labour market – one in 10 (10.4%) BME disabled workers are unemployed compared to nearly one in 40 (2.6%) white non-disabled workers.
Zero-hours contracts
The analysis shows that disabled workers are more likely than non-disabled workers to be on zero-hours contracts (4.5% to 3.4%).
And disabled BME women are nearly three times as likely as non-disabled white men (6.0% to 2.2%) to be on these insecure contracts.
The TUC says zero-hours contracts hand the employer total control over workers’ hours and earning power, meaning workers never know how much they will earn each week, and their income is subject to the whims of managers.
The union body argues that this makes it hard for workers to plan their lives, look after their children and get to medical appointments.
And it makes it harder for workers to challenge unacceptable behaviour by bosses because of concerns about whether they will be penalised by not being allocated hours in future.
New Deal for Working People
The TUC is calling for government action to end the discrimination disabled workers’ face in the jobs market.
The union body says Labour’s New Deal for Working People would be a “game changer” for workers’ rights.
Labour has pledged to deliver new rights for working people in an employment bill in its first 100 days.
Labour’s new deal would:
Introduce disability and ethnicity pay gap reporting.
Strengthen flexible working rights by introducing a day one right to work flexibly.
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 General Secretary Paul Nowak said: “We all deserve to be paid fairly for the work we do. But disabled people continue to be valued less in our jobs market.
“It’s shameful there has been zero progress on the disability pay gap in the last decade. Being disabled shouldn’t mean you are given a lower wage – or left out of the jobs market altogether.
“Too many disabled people are held back at work, not getting the reasonable adjustments they need to do their jobs. And we need to strengthen the benefits system for those who are unable to work or are out of work, so they are not left in poverty.
“It’s time for a step change. Labour’s New Deal for Working People would be an absolute game changer for disabled workers. It would introduce mandatory disability pay gap reporting to shine a light on inequality at work.
“Without this legislation, millions of disabled workers will be consigned to many more years of lower pay and in-work poverty.”
TUC announces special Congress to fight Conservative attack on the right to strike
My Lords and members of the House of Commons
It is mindful of the legacy of service and devotion to this country set by My beloved Mother, The late Queen, that I deliver this, the first King’s Speech in over 70 years.
The impact of Covid and the war in Ukraine have created significant long-term challenges for the United Kingdom. That is why my Government’s priority is to make the difficult but necessary long-term decisions to change this country for the better.
My Ministers’ focus is on increasing economic growth and safeguarding the health and security of the British people for generations to come.
My Government will continue to take action to bring down inflation, to ease the cost of living for families and help businesses fund new jobs and investment.
My Ministers will support the Bank of England to return inflation to target by taking responsible decisions on spending and borrowing. These decisions will help household finances, reduce public sector debt, and safeguard the financial security of the country.
Legislation will be introduced to strengthen the United Kingdom’s energy security and reduce reliance on volatile international energy markets and hostile foreign regimes. This Bill will support the future licensing of new oil and gas fields, helping the country to transition to net zero by 2050 without adding undue burdens on households.
Alongside this, my Ministers will seek to attract record levels of investment in renewable energy sources and reform grid connections, building on the United Kingdom’s track-record of decarbonising faster than other G7 economies.
My Government will invest in Network North to deliver faster and more reliable journeys between, and within, the cities and towns of the North and Midlands, prioritising improving the journeys that people make most often.
My Ministers will strengthen education for the long term. Steps will be taken to ensure young people have the knowledge and skills to succeed, through the introduction of the Advanced British Standard that will bring technical and academic routes into a single qualification. Proposals will be implemented to reduce the number of young people studying poor quality university degrees and increase the number undertaking high quality apprenticeships.
My Ministers will take steps to make the economy more competitive, taking advantage of freedoms afforded by the United Kingdom’s departure from the European Union. A bill will be brought forward to promote trade and investment with economies in the fastest growing region in the world. My Ministers will continue to negotiate trade agreements with dynamic economies, delivering jobs and growth in the United Kingdom.
My Ministers will introduce new legal frameworks to support the safe commercial development of emerging industries, such as self-driving vehicles, introduce new competition rules for digital markets, and encourage innovation in technologies such as machine learning. Legislation will be brought forward to support the creative industries and protect public interest journalism. Proposals will be published to reform welfare and support more people into work.
My Government will promote the integrity of the Union and strengthen the social fabric of the United Kingdom.
Working with NHS England, my Government will deliver its plans to cut waiting lists and transform the long-term workforce of the National Health Service. This will include delivering on the NHS workforce plan, the first long-term plan to train the doctors and nurses the country needs, and minimum service levels to prevent strikes from undermining patient safety.
Record levels of investment are expanding and transforming mental health services to ensure more people can access the support they need. My Government will introduce legislation to create a smokefree generation by restricting the sale of tobacco so that children currently aged fourteen or younger can never be sold cigarettes, and restricting the sale and marketing of e-cigarettes to children.
My Ministers will bring forward a bill to reform the housing market by making it cheaper and easier for leaseholders to purchase their freehold and tackling the exploitation of millions of homeowners through punitive service charges. Renters will benefit from stronger security of tenure and better value, while landlords will benefit from reforms to provide certainty that they can regain their properties when needed.
My Government will deliver a long-term plan to regenerate towns and put local people in control of their future. Legislation will be brought forward to safeguard the future of football clubs for the benefit of communities and fans. A bill will be introduced to deal with the scourge of unlicensed pedicabs in London.
My Government is committed to tackling antisemitism and ensuring that the Holocaust is never forgotten. A bill will progress the construction of a national Holocaust Memorial and Learning Centre in Victoria Tower Gardens.
My Government will act to keep communities safe from crime, anti-social behaviour, terrorism and illegal migration.
A bill will be brought forward to ensure tougher sentences for the most serious offenders and increase the confidence of victims. My Ministers will introduce legislation to empower police forces and the criminal justice system to prevent new or complex crimes, such as digital-enabled crime and child sexual abuse, including grooming.
At a time when threats to national security are changing rapidly due to new technology, my Ministers will give the security and intelligence services the powers they need and will strengthen independent judicial oversight. Legislation will be introduced to protect public premises from terrorism in light of the Manchester Arena attack.
My Government will deliver on the Illegal Migration Act passed earlier this year and on international agreements, to stop dangerous and illegal Channel crossings and ensure it is the government, not criminal gangs, who decides who comes to this country.
My Government will continue to champion security around the world, to invest in our gallant Armed Forces and to support veterans to whom so much is owed. My Ministers will work closely with international partners to support Ukraine, strengthen NATO and address the most pressing security challenges. This includes the consequences of the barbaric acts of terrorism against the people of Israel, facilitating humanitarian support into Gaza and supporting the cause of peace and stability in the Middle East.
My Government will continue to lead action on tackling climate change and biodiversity loss, support developing countries with their energy transition, and hold other countries to their environmental commitments.
The United Kingdom will continue to lead international discussions to ensure that Artificial Intelligence is developed safely.
My Government will host the Global Investment Summit, the European Political Community, and the Energy Conference, leading global conversations on the United Kingdom’s most pressing challenges.
I look forward to welcoming His Excellency the President of the Republic of Korea and Mrs. Kim Keon Hee for a State Visit later this month.
My Government will, in all respects, seek to make long-term decisions in the interests of future generations. My Ministers will address inflation and the drivers of low growth over demands for greater spending or borrowing. My Ministers will put the security of communities and the nation ahead of the rights of those who endanger it. By taking these long-term decisions, my Government will change this country and build a better future.
Members of the House of Commons.
Estimates for the public services will be laid before you.
My Lords and Member of the House of Commons.
Other measures will be laid before you.
I pray that the blessing of Almighty God may rest upon your counsels.
“Once in a generation” special Congress to take place on Saturday 9 December at Congress House
TUC announces special Congress to fight Conservative attack on the right to strike
The TUC has announced it will hold a special Congress to discuss the next stage of campaigning against the Conservatives’ anti-strike laws.
The event will take place at Congress House on Saturday 9 December 2023, from 10am-1pm.
The TUC says more details on the special Congress will follow in the coming weeks, including on media accreditation.
It is rare for the TUC to seek to convene the whole trade union movement at a special Congress outside of the TUC’s usual flagship annual event in September.
A special Congress last took place over 40 years ago in 1982, to fight Margaret Thatcher’s anti-union legislation.
The TUC points to exceptional circumstances given the “unprecedented attack on the right to strike”.
New regulations
The announcement comes after the government laid regulations for minimum service levels in rail, the ambulance service and border security.
Ministers have said these new rules will be rushed into force by the end of the year. Ministers are also consulting on rules affecting workers in hospital settings, schools, universities and fire services.
This is despite warnings from unions and employer groups that the plans are unworkable.
The laws will mean that when workers lawfully vote to strike, they could be forced to attend work – and sacked if they don’t comply.
TUC research found a massive 1 in 5 workers in Britain – or 5.5 million workers – are at risk of losing their right to strike as a result of the Strikes (Minimum service levels) Act.
TUC General Secretary Paul Nowak said: “After 13 long years of Conservative government, nothing works in this country anymore.
“But instead of getting on with fixing the mess they have created, the Conservatives are hellbent on making things worse.
“These new laws represent an unprecedented attack on the right to strike. They are unworkable, undemocratic and almost certainly in breach of international law.
“This is the last thing our crumbling public services or our dedicated frontline workers need – these draconian laws will poison industrial relations and drag out disputes.
“The UK already has some of the most restrictive trade union laws in Europe. Now the Tories want to make it even harder for people to win fair pay and conditions.
“That’s why we are calling this once in a generation special Congress.
“Unions will keep fighting this spiteful legislation. We won’t stop until it is repealed.”
Minimum Service Levels legislation will be passed for rail, ambulance, and border security staff to mitigate disruption if strikes called.
Delivers on manifesto commitment to introduce minimum service levels for rail strikes.
Comes ahead of further consultations to introduce minimum service levels for education, other NHS staff, and fire services.
Minimum service level regulations for rail workers, ambulance staff and border security staff will be laid in parliament to mitigate disruption and ensure vital public services continue if strikes are called, the UK government announced yesterday (Monday 6 November).
The legislation brings us in line with countries like France, Italy, Spain, and the US where public services reliably continue during strikes. The International Labour Organisation also recognises Minimum Service Levels as a sensible solution to protect the public from serious consequences of strikes.
The minimum service levels are designed to be effective and proportionate by balancing the ability to take strike action with ensuring we can keep our borders secure, supporting people to make important journeys including accessing work, education, and healthcare, and allowing people to get the emergency care they need.
Earlier this year, the government consulted widely on proposals to introduce minimum service levels legislation across a range of sectors, under the Strikes (Minimum Service Levels) Act which received Royal Assent in July. The responses to these consultations have been published today with the legislation set to be laid in parliament tomorrow.
For border security, the regulations will apply to employees of Border Force and selected HM Passport Office staff where passport services are required for the purposes of national security. The laws will set out that border security services should be provided at a level that means that they are no less effective than if a strike were not taking place. It will also ensure all ports and airports remain open on a strike.
For train operators, it will mean the equivalent of 40% of their normal timetable can operate as normal and, in the case of strikes that affect rail infrastructure services, certain priority routes can remain open.
Minimum service level regulations for ambulance workers will ensure that vital ambulance services in England will continue throughout any strike action, ensuring that cases that are life-threatening, or where there is no reasonable clinical alternative to an ambulance response, are responded to.
Prime Minister Rishi Sunak said: “We are doing everything in our power to stop unions de-railing Christmas for millions of people. This legislation will ensure more people will be able to travel to see their friends and family and get the emergency care they need.
“We cannot go on relying on short term fixes – including calling on our Armed Forces or civil servants – to mitigate the disruption caused by strike action.
“That’s why we’re taking the right long-term decision to bring in minimum service levels, in line with other countries, to keep people safe and continue delivering the vital public services that hard-working people rely on.”
Where minimum service level regulations are in place and strike action is called, employers can issue work notices to identify people who are reasonably required to work to ensure minimum service levels are met.
The law requires unions to take reasonable steps and ensure their members who are identified with a work notice comply and if a union fails to do this, they will lose their legal protection from damages claims.
Last year, Westminster raised the maximum damages that courts can award against a union for unlawful strike action. For the biggest unions, the maximum award has risen from £250,000 to £1 million.
Transport Secretary, Mark Harper said: “For too long, hard working people have been unfairly targeted by rail union leaders – prevented from making important journeys, including getting to work, school or vital hospital appointments.
“Minimum Service Levels will help address this by allowing the rail industry to plan ahead to reduce disruption for passengers while ensuring workers can still exercise their ability to strike.
“An improved service on strike days will allow passengers to continue with their day-to-day lives and support businesses, particularly in the hospitality sector.”
Earlier this year, the UK government accepted the independent pay review bodies recommendations in full, providing a fair pay deal for all public sector workers.
An agreement between the government and Agenda for Change unions earlier this year saw over one million NHS staff receive a 5% pay rise along with one-off awards worth over £3,000 for the typical nurse or ambulance worker.
For rail workers, there remains a fair and reasonable offer on the table which several unions have already accepted, one which would deliver competitive pay rises of 5% + 4% pay increase over two years.
Home Office staff in delegated grades including Border Force staff have been provided with a pay award averaging 4.5% with an additional 0.5% targeted at the lower grades.
Home Secretary Suella Braverman said: “We must never allow strike action to compromise our border security or cause significant disruption to passengers and goods at our borders.
“The Armed Forces have commendably stepped up to fill vital roles during recent industrial action, but it would be irresponsible to rely on such short-term solutions to protect our national security.
“The minimum service levels announced today will ensure a fair balance between delivering the best possible service to the travelling public, maintaining a secure border and the ability of workers to strike.”
The government continues to recognise the crucial role of NHS staff and remains committed to working constructively to end any disruption for patients, and there are currently no live strike mandates relating to ambulance trusts. However, strikes have already had a significant impact on patients, NHS staff and efforts to cut waiting lists – including over one million postponed appointments and procedures.
The Department of Health and Social Care is currently seeking evidence on expanding the scope of minimum service levels to cover other urgent and emergency hospital-based services which could include nurses and doctors. The consultation is set to close on the 14th of November.
Health and Social Care Secretary Steve Barclay said: “Patients must be protected and strikes in ambulance services could put the lives and health of the public at risk, given their essential role in responding to life threatening emergencies.
“While voluntary agreements between employers and trade unions can still be agreed ahead of industrial action, these regulations provide a safety net for trusts and an assurance to the public that vital emergency services will be there when they need them.
“We will continue to take steps to protect patient safety and ensure health services have the staff they need to operate safely and effectively, no matter the circumstances.”
The Education Secretary has committed to introduce minimum service levels on a voluntary basis should an agreement be reached with the education unions. If a voluntary arrangement cannot be agreed, a consultation will be launched on introducing minimum service levels in schools and colleges.
Separately, the Department has also committed to launching a consultation on introducing minimum service levels in universities.
The Department for Business and Trade recently consulted on a new draft statutory Code of Practice on the ‘reasonable steps’ a trade union should take to meet the requirements set out in the Strikes (Minimum Service Levels) Act 2023.
They will also launch a consultation on removing regulation 7 across all sectors which prevents employment businesses supplying agency workers to cover the duties normally performed by a worker who is taking part in an official strike or other industrial action. These will be published in due course.
TUC slams government for “unworkable” and “irrational” anti-strike laws
Ministers to lay regulations today for minimum service levels in rail, the ambulance service and border security
Conservatives also looking to overturn ban on use of agency workers during strikes – despite “humiliating” defeat at the High Court in June
TUC accuses government of punishing workers “for daring to stand up for decent pay and better services.”
Union body says new laws are almost certainly in breach of international law
The TUC has slammed the government for trying to railroad through “unworkable” and “irrational” anti-strike laws.
Government ministers yesterday laid regulations for so-called ‘minimum service levels’ in rail, the ambulance service and border security. Ministers have said they will be rushed into force by the end of the year.
This comes despite warnings from unions and employer groups that the plans are unworkable.
The laws will mean that when workers lawfully vote to strike they could be forced to attend work – and sacked if they don’t comply.
TUC research found a massive 1 in 5 workers in Britain – or 5.5 million workers – are at risk of losing their right to strike as a result of the Strikes (Minimum service levels) Act.
Agency worker rules
In addition, ministers will try again to overturn the ban on the use of agency workers during strikes.
In June the government was defeated in the High Court after it rushed through new laws that allowed agencies to supply employers with workers to fill in for those on strike.
The presiding judge scolded ministers for acting in a way that was “unfair, unlawful and irrational” and reinstated the ban on agency staff being used to break strikes.
But despite this rebuke – and strong opposition from unions and employers – ministers are resurrecting the plans with a new consultation.
Commenting on the extension of minimum service levels to rail, the ambulance services and border security, Paul Nowak said: “These anti-strike laws won’t work. The crisis in our public services is of the government’s own making.
“Rather than engaging constructively with unions, they are attacking the right to strike. And they are punishing paramedics and rail staff for daring to stand up for decent pay and better services.
“These new laws are unworkable, undemocratic and almost certainly in breach of international law.
“The UK already has some of the most restrictive trade union laws in Europe.
“It is already harder for working people here to take strike action than in any other Western European country. Now the Tories want to make it even harder for people to win fair pay and conditions.
“Unions will keep fighting this spiteful legislation. We won’t stop until it is repealed.”
In September the TUC reported the government to the International Labour Organization (ILO) – the UN workers’ rights watchdog – over the Strikes Act.
Commenting on the announcement on agency workers, TUC General Secretary Paul Nowak said: “Allowing unscrupulous employers to bring in agency staff to deliver important services risks endangering public safety and escalating disputes.
“Agency recruitment bodies have repeatedly made clear they don’t want their staff to be used as political pawns during strikes. But ministers are not listening.
“Despite suffering a humiliating defeat at the High Court, they are bringing back the same irrational plans.
“This is the act of desperate government looking to distract from its appalling record.”
The US, France, Singapore, Italy, Japan and China among nations confirmed to attend Bletchley Park Summit
historic venue will play host to crucial talks around risks and opportunities posed by rapid advances in frontier AI
Secretary of State Michelle Donelan to call for international collaboration to mitigate risks of AI
Leading AI nations, businesses, civil society and AI experts will convene at Bletchley Park today (Wednesday 1 November) for the first ever AI Safety Summit where they’ll discuss the global future of AI and work towards a shared understanding of its risks.
Technology Secretary Michelle Donelan will open the event by welcoming an expert cast list before setting out the UK government’s vision for safety and security to be at the heart of advances in AI, in order to enable the enormous opportunities it will bring.
She will look to make progress on the talks which will pave the way for a safer world by identifying risks, opportunities and the need for international collaboration, before highlighting consensus on the scale, importance and urgency for AI opportunities and the necessity for mitigating frontier AI risks to unlock them.
The historic venue will play host to the landmark 2-day summit, which will see a small, but focused group comprising of AI companies, civil society and independent experts gather around the table to kickstart urgent talks on the risks and opportunities posed by rapid advances in frontier AI – especially ahead of new models launching next year, whose capabilities may not be fully understood.
The US, France, Germany, Italy, Japan and China are among nations confirmed as attendees at the AI Safety Summit. Representatives from The Alan Turing Institute, The Organisation for Economic Cooperation and Development (OECD) and the Ada Lovelace Institute are also among the groups confirmed to attend, highlighting the depth of expertise of the delegates who are expected to take part in crucial talks.
As set out by Prime Minister Rishi Sunak last week, the summit will focus on understanding the risks such as potential threats to national security right through to the dangers a loss of control of the technology could bring. Discussions around issues likely to impact society, such as election disruption and erosion of social trust are also set to take place.
The UK already employs over 50,000 people in the AI sector and contributes £3.7 billion to our economy annually. Additionally, the UK is home to twice as many AI companies as any other European country, and hundreds more AI companies start up in the UK every year, growing our economy and creating more jobs.
As such, day one of the summit will also host several roundtable discussions dedicated to improving frontier AI safety with key UK based developers such as Open-AI, Anthropic and UK based Deepmind. Delegates will consider how risk thresholds, effective safety assessments, and robust governance and accountability mechanisms can be defined to enable the safe scaling of frontier AI by developers.
Secretary of State for Technology, Michelle Donelan MP said: “AI is already an extraordinary force for good in our society, with limitless opportunity to grow the global economy, deliver better public services and tackle some of the world’s biggest challenges.
“But the risks posed by frontier AI are serious and substantive and it is critical that we work together, both across sectors and countries to recognise these risks.
“This summit provides an opportunity for us to ensure we have the right people with the right expertise gathered around the table to discuss how we can mitigate these risks moving forward. Only then will we be able to truly reap the benefits of this transformative technology in a responsible manner.”
Discussions are expected to centre around the risks emerging from rapid advances in AI, before exploring the transformative opportunities the technology has to offer – including in education and areas for international research collaborations.
The Secretary of State will be joined by members of the UK’s Frontier AI Taskforce – including its Chair, Ian Hogarth – which was launched earlier this year to evaluate the risks of frontier AI models, and by representatives from nations at the cutting-edge of AI development.
They will also look at what national policymakers, the international community, and scientists and researchers can do to manage the risks and harness the opportunities of AI to deliver economic and social benefits around the world.
Day one will conclude with a panel discussion on the transformative opportunities of AI for public good now and in the long-term, with a focus on how it can be used by teachers and students to revolutionise education.
Technology Secretary Michelle Donelan will also take to the podium to deliver closing remarks to delegates, before the curtain falls on what is hoped will be an historic first day of the first ever global AI Safety Summit.
AI Summit is dominated by Big Tech and a “missed opportunity”
More than 100 UK and international organisations, experts and campaigners sign open letter to Rishi Sunak
Groups warn that the “communities and workers most affected by AI have been marginalised by the Summit.”
“Closed door event” is dominated by Big Tech and overly focused on speculative risks instead of AI threats “in the here and now”- PM told
Signatories to letter include leading human rights organisations, trade union bodies, tech orgs, leading academics and experts on AI
More than 100 civil society organisations from across the UK and world have branded the government’s AI Summit as “a missed opportunity”.
In an open letter to Prime Minister Rishi Sunak the groups warn that the “communities and workers most affected by AI have been marginalised by the Summit” while a select few corporations seek to shape the rules.
The letter has been coordinated by the TUC, Connected by Data and Open Rights Group and is released ahead of the official AI Summit at Bletchley Park on 1 and 2 November. Signatories to the letter include:
Major and international trade union confederations – such as the TUC, AFL-CIO, European Trade Union Confederation, UNI Global, International Trade Union Confederation representing tens of millions of workers worldwide
International and UK human rights orgs – such as Amnesty International, Liberty, Article 19, Privacy International, Access Now
Domestic and international civil society organisations – such as Connected by Data, Open Rights Group, 5 Rights, Consumers International.
Tech community voices – such as Mozilla, AI Now Institute and individuals associated to the AI Council, Alan Turing Institute & British Computing Society
Leading international academics, experts, members of the House of Lords
Highlighting the exclusion of civil society from the Summit, the letter says: “Your ‘Global Summit on AI Safety’ seeks to tackle the transformational risks and benefits of AI, acknowledging that AI “will fundamentally alter the way we live, work, and relate to one another”.
“Yet the communities and workers most affected by AI have been marginalised by the Summit.
“The involvement of civil society organisations that bring a diversity of expertise and perspectives has been selective and limited.
“This is a missed opportunity.”
Highlighting the Summit’s lack of focus on immediate threats of AI and dominance of Big Tech, the letter says: “As it stands, the Summit is a closed door event, overly focused on speculation about the remote ‘existential risks’ of ‘frontier’ AI systems – systems built by the very same corporations who now seek to shape the rules.
“For many millions of people in the UK and across the world, the risks and harms of AI are not distant – they are felt in the here and now.
“This is about being fired from your job by algorithm, or unfairly profiled for a loan based on your identity or postcode.
“People are being subject to authoritarian biometric surveillance, or to discredited predictive policing.
“Small businesses and artists are being squeezed out, and innovation smothered as a handful of big tech companies capture even more power and influence.
“To make AI truly safe we must tackle these and many other issues of huge individual and societal significance. Successfully doing so will lay the foundations for managing future risks.”
Calling for a more inclusive approach to managing the risks of AI, the letter concludes: “For the Summit itself and the work that has to follow, a wide range of expertise and the voices of communities most exposed to AI harms must have a powerful say and equal seat at the table. The inclusion of these voices will ensure that the public and policy makers get the full picture.
“In this way we can work towards ensuring the future of AI is as safe and beneficial as possible for communities in the UK and across the world.”
Senior Campaigns and Policy Officer for Connected by Data Adam Cantwell-Corn said: ““AI must be shaped in the interests of the wider public. This means ensuring that a range of expertise, perspectives and communities have an equal seat at the table. The Summit demonstrates a failure to do this.
“The open letter is a powerful, diverse and international challenge to the unacceptable domination of AI policy by narrow interests.
“Beyond the Summit, AI policy making needs a re-think – domestically and internationally – to steer these transformative technologies in a democratic and socially useful direction.”
TUC Assistant General Secretary Kate Bell said: “It is hugely disappointing that unions and wider civil society have been denied proper representation at this Summit.
“AI is already making life-changing decisions – like how we work, how we’re hired and who gets fired.
“But working people have yet to be given a seat at the table.
“This event was an opportunity to bring together a wide range of voices to discuss how we deal with immediate threats and make sure AI benefits all.
“It shouldn’t just be tech bros and politicians who get to shape the future of AI.”
Open Rights Group Policy Manager for Data Rights and Privacy Abby Burke said: ““The government has bungled what could have been an opportunity for real global AI leadership due to the Summit’s limited scope and invitees.
“The agenda’s focus on future, apocalyptic risks belies the fact that government bodies and institutions in the UK are already deploying AI and automated decision-making in ways that are exposing citizens to error and bias on a massive scale.
It’s extremely concerning that the government has excluded those who are experiencing harms and other critical expert and activist voices from its Summit, allowing businesses who create and profit from AI systems to set the UK’s agenda.”
The full letter reads:
An open letter to the Prime Minister on the ‘Global Summit on AI Safety’
Dear Prime Minister,
Your ‘Global Summit on AI Safety’ seeks to tackle the transformational risks and benefits of AI, acknowledging that AI “will fundamentally alter the way we live, work, and relate to one another”.
Yet the communities and workers most affected by AI have been marginalised by the Summit.
The involvement of civil society organisations that bring a diversity of expertise and perspectives has been selective and limited.
This is a missed opportunity.
As it stands, the Summit is a closed door event, overly focused on speculation about the remote ‘existential risks’ of ‘frontier’ AI systems – systems built by the very same corporations who now seek to shape the rules.
For many millions of people in the UK and across the world, the risks and harms of AI are not distant – they are felt in the here and now.
This is about being fired from your job by algorithm, or unfairly profiled for a loan based on your identity or postcode.
People are being subject to authoritarian biometric surveillance, or to discredited predictive policing.
Small businesses and artists are being squeezed out, and innovation smothered as a handful of big tech companies capture even more power and influence.
To make AI truly safe we must tackle these and many other issues of huge individual and societal significance. Successfully doing so will lay the foundations for managing future risks.
For the Summit itself and the work that has to follow, a wide range of expertise and the voices of communities most exposed to AI harms must have a powerful say and equal seat at the table. The inclusion of these voices will ensure that the public and policy makers get the full picture.
In this way we can work towards ensuring the future of AI is as safe and beneficial as possible for communities in the UK and across the world.
Care matters to us all. We all want good quality cradle to grave care for ourselves and our loved ones (writes TUC’s ABIGAIL HUNT). This is only possible if the workers delivering care services have good pay and conditions.
The global care workforce is huge, totalling at least 381 million workers, two-thirds of whom are women. Worldwide this is 11.5 per cent of total employment and 19.3 per cent of female employment.
In the UK, adult social care jobs alone contribute at least £55.7 billion to the economy and constitute around 6 per cent of total UK employment.
Yet care work is persistently insecure and exploitative. Low and insecure pay, bad employment conditions, violence and harassment, and a limited training and career development are part and parcel of everyday life for care workers.
Recent TUC analysis shows that care workers across the UK are earning below the real living wage and are significantly underpaid relative to pay across the rest of the economy. The median salary of social care workers and childcare practitioners is less than two-thirds of that of all employees nationally.
On 29th October, trade unions, governments, the UN and other social partners will mark the International Day for Care.
This day, initiated by trade unions and recognised in July through a UN General Assembly Resolution, gives visibility to the care economy – and care workers – worldwide and provides an opportunity to build momentum for increased public investment and decent work in the care sector.
Here are three ways that global solidarity and action matter for decent work in the care economy:
The care workforce is global
In recent years ‘global care chains’ have emerged as rising demand for care services has seen migrant workers, largely female, fill care jobs – including childcare, social care and domestic workers as well as nurses, doctors and educators – in turn leaving their own children and relatives in the care of paid workers and family in their home country.
The UK is a key link in the chain, with labour migration increasingly recognised as critical to deliver care services. In 2022 the UK Government expanded the care worker visa scheme to help tackle the ongoing recruitment and retention crisis in social care. This meant that in 2022/23 70,000 international care workers were recruited, up 50,000 from the previous year.
But the TUC has identified that as international recruitment has increased, so has the exploitation and abuse of migrant workers.
This includes wage theft, high recruitment fees with non-permitted repayment clauses and debt bondage as well as abuse of the immigration system by employers to blackmail workers and prevent them seeking other employment.
Therefore the fight for decent care jobs must include the experiences, priorities and needs of international care workers.
The global union movement provides solidarity and support
Global union solidarity and joint action is critical to build care worker movements and support workers.
Sharing insights into working conditions helps unions provide vital workforce support. Trade unions in destination countries have provided information on immigration, employment rights and common labour abuses with migrant care workers via unions in countries of origin. This toolkit produced by unions in Italy is a great example.
Global labour law and policy raise the bar on domestic standards for decent care work
Global and regional labour standards and policy have tackled historic discrimination and exploitation against care workers by setting transnational employment rights floors – and binding governments to act.
Many unions have now turned their attention to getting their government to ratify C.189, including in the UK. From Belgium to Mexico, where it is in force, C.189 has helped extend rights such as paid leave, minimum wages and employment contracts to domestic workers.
In 2015 governments worldwide agreed the UN Sustainable Development Goals, including gender equality (Goal 5) and decent work (Goal 8). This has increased resources and political will, putting care on the policy agenda for the first time ever in many countries.
Important regional initiatives have also emerged. Earlier this year European social partners agreed a social dialogue committee for social services, including adult social care and childcare, covering around 9 million workers across the EU.
Next year will bring important opportunities to reinforce the global framework for care workers’ rights.
In May 2024 governments, trade unions and employers will discuss decent work in the care economy at the International Labour Conference, where unions will seek commitment to a new ILO standard for care jobs.
And we hope to see the UN General Assembly build on this year’s Resolution with a more substantive agreement committing governments to building and financing comprehensive care systems – with decent work and collective bargaining at their heart.
Follow the International Day for Care: #InvestInCare #Care2023
Read more about TUC’s priorities for the care workforce at these links:
The UK Government has launched a new disability awareness campaign, #AskDontAssume (writes TUC’s EMMA KOSMIN). Disabled people have had to point out that the campaign is offensive and harmful. But the government are not listening to disabled people.
The campaign encourages the public to ask disabled people questions about their lives. This can often be intrusive and upsetting.
The irony is that this is the same government that have done so much to stigmatize disabled people. They have cut services to the bone, and used disabled people as a scapegoat. And they have taken no meaningful action to address systematic barriers.
In fact, disabled workers are on the sharp end of the pay and cost of living crisis created by the government.
Seven in ten (69%) disabled workers now earn less than £15 an hour. That’s compared to half (50%) of non-disabled workers.
And disabled people are much more likely to be on zero hours contracts.
We need action from the government, not a fluffy PR campaign that will lead to even more harm.
Here are five things that the government should do, that would actually be helpful:
1. Raise the minimum wage to £15 an hour as soon as possible, to tackle the low pay that impacts disabled workers.
2. Stamp out insecure work by banning zero hours contracts and ending fire and rehire.
3. Make employers put reasonable adjustments in place for disabled workers. And bring in fines for employers that don’t.
4. Bring in disability pay gap reporting. Employers should have to publish how much they pay disabled workers, compared to non-disabled workers.
5. Make flexible working the norm for everyone.
Disabled workers need a pay rise and better terms and conditions at work – not another meaningless PR exercise.
UK Government to redirect vast HS2 savings into unprecedented transport investment across the country, benefiting more people, in more places, more quickly.
Scotland to benefit from funding to enable better links between the Cairnryan ferry terminals serving Northern Ireland and South West Scotland.
A total of £36 billion in savings from HS2 will be reinvested in hundreds of transport projects across the UK.
Network North will build better connectivity across the North and Midlands, with faster journey times, increased capacity, and more frequent, reliable services, according to the Westminster government.
And connections will also be strengthened across the United Kingdom, following recommendations made in the Union Connectivity Review.
Scotland will benefit from funding to solve the pinch points on the A75 between Gretna and Stranraer, providing better links between the Cairnryan ferry terminals serving Northern Ireland and southwest Scotland – recognising the importance of east-west connectivity within the UK.
The move comes alongside further investment in the connections with the M6 and Cumbria, and the A77 towards Glasgow.
Successive governments have promised it, but we ( the UK Government) are delivering long-awaited upgrades to the A1 coastal route between Newcastle and Berwick-upon-Tweed, improving the route to Edinburgh and strengthening transport links between Scotland and England.
We will continue to work with the Scottish Government to deliver the benefits of this investment package and improve connectivity across the country.
TUC slams Conservatives’ decision to axe northern leg of HS2 as a “huge act of levelling down”
Commenting on the prime minister’s speech to Conservative Party Conference, TUC General Secretary Paul Nowak said: “The Tories have broken Britain. Today the Prime Minister confirmed what everybody already knew – he has neither a plan or vision for fixing it.
“Whether it’s failing to deliver HS2, presiding over the longest pay squeeze in modern history or record hospital waiting lists – the Conservatives’ record in government has been dire.
“We urgently need political change. The country cannot afford the Tories for one day longer. It’s time for a general election.”
Commenting on the decision to axe the northern leg of HS2, Paul said: “This a huge act of levelling down – however Rishi Sunak tries to spin it.
“The northern leg of HS2 would have created thousands of good jobs and boosted growth across the North and the Midlands.
“But these economic benefits have been squandered by the Conservatives’ gross incompetence. This failure is on them and them alone.
“The public will be rightly sceptical about more promises on transport investment for the north and the Midlands. Who can trust the Tories to deliver on anything?”
“It’s only right that the wealthiest pay their fair share”
Wealthiest “feathering their nests” while working people suffer the worst pay crisis for two centuries
NEW POLLING reveals significant cross-voter support for increasing taxes on wealth and excess profits, as the TUC general secretary renews call for a national conversation on tax
3 in 4 think capital gains should be taxed at the same or higher than income tax – including 73% of Conservative 2019 voters
TUC calls for a new deal for workers to help tackle the boom in insecure work, stagnant wages and attacks on workers’ rights.
The TUC has declared that “we must put an end to the grotesque inequality of the Tory era”.Ahead of its annual Congress in Liverpool this weekend, the TUC says the Conservatives have allowed Britain’s wealthiest to “feather their nests” while working people have suffered the worst pay crisis for two centuries.
The union body adds that the Conservatives have delivered a “broken economic model which rewards wealth, not work”.
With “living standards plummeting, public services on their knees, and rampant wealth inequality blighting every corner of the country”, the union body says fair taxation must be a key part of a wider set of policies to help “reset the economy to work for working people”.
The TUC is renewing its call for a “national conversation on taxing wealth and windfalls” to help build a fairer society and “fix broken Britain”.
Significant support for fairer tax
The call comes as the union body publishes new polling, conducted by Opinium, which shows significant cross-party support for increasing taxes on wealth and excess profits.
A clear majority (61%) of the public think wealthy people should pay more tax than they are now – including over half (53%) of Conservative voters in the 2019 general election.
Only 4% of the public think wealthy people should pay less tax.
There is significant backing for increasing capital gains tax too.
Around 3 in 4 (72%) think capital gains should be taxed at the same or higher than income tax – including 73% of Conservative 2019 voters.
There was also huge support across the board for windfall taxes on excess profits:
Three quarters (75%) of the public support a windfall tax on banks’ excess profits – including 76% of Conservative 2019 voters
4 in 5 (80%) support a windfall tax on energy companies’ profits – including 81% of Conservative 2019 voters
7 in 10 (69%) support a windfall tax on large online retailers’ excess profits (like Amazon)
The TUC has already called on the government to equalise capital gains tax with income tax which could raise over £10 billion – and it has supported a bigger windfall tax on energy companies.
Recent TUC analysis set out options for taxing the wealthiest 0.3% with wealth over £3 million, £5 million and £10 million, excluding pensions.
It found a modest wealth tax on the richest 140,000 individuals – which is around 0.3% of the UK population – could deliver a £10.4 bn boost for the public purse.
Rampant inequalities
The TUC warns that huge inequality has “become the norm” in Tory Britain.
The ONS’ analysis of its Wealth and Assets Survey shows that the richest 1% of households had wealth of more than £3.6 million, and the least wealthy ten per cent had £15,400 or less.
Of financial wealth, the ONS say the wealth held by the richest 1% of households was greater than for the entire bottom 80 per cent of the population.
City bonuses have been at a record level for the past two years. And banks and energy giants have been registering record profits too.
Worst pay crisis for two centuries
The TUC says working people are suffering the worst pay crisis in 200 years, which is contributing to the rampant wealth and income inequalities blighting every corner of the country.
Fifteen years on since the financial crisis, real pay is still down £360 this year compared to 2008. The average worker has lost out on a total of £21,600 since 2008, compared with wages just keeping pace with inflation.
And pay is not expected to return to 2008 level for at least another two years.
If real wages had continued to grow at the average pre-2008 rate of 2.3 per cent each year, the average worker would now be £280 per week, or £14,600 per year, better off.
Time for an economic reset
The TUC is calling for an economic reset after years of Tory failure.
As well as growing inequality, declining living standards, and public services which have been cut to the bone, the union body says the Conservatives have presided over a boom in insecure work and an attack on workers’ rights.
In addition to fairer taxation, the union body is repeating its demands for stronger protections for workers, and calling for improvements including:
Fair pay agreements to get pay rising in low-paid industries
A ban on the abusive use of zero hours contracts and a ban on fire and rehire
Day one employment rights, like protection against unfair dismissal.
The TUC says these policies are hugely popular across the political spectrum – as various recent polls have shown.
TUC General Secretary Paul Nowak said: “It’s time to end the grotesque inequality of the Tory era.
“As households across the country have struggled to put food on the table, energy companies and banks have registered eyewatering profits, and CEO pay has skyrocketed.
“The wealthiest have feathered their nests while working people have suffered the worst pay crisis in two centuries.
“Rampant inequalities are the direct result of a broken Tory economic model that rewards wealth, not work.
“We need a reset – and an economy that delivers better living standards for all – not just those at the top.”
On the need to kickstart a national conversation about taxing wealth, Paul added: “Now is the time for a national conversation on taxing wealth and windfalls.
“With living standards plummeting, public services on their knees, and huge wealth inequalities blighting every corner of the country, fairer taxes can help to fix broken Britain.
“But our current tax system isn’t fit for purpose. A nurse will pay a bigger share of their income in tax than a city trader does on profits from their investment portfolio.
“That’s not only absurd and unfair – it’s bad for our economy and our public services too.
“The public overwhelmingly back increased taxes on the wealthiest and companies that have made massive profits.
“It’s only right that the wealthiest pay their fair share.”
BME men almost twice as likely to be in insecure work as white men – and BME women are more likely to be insecure work compared to white women
Insecure work is characterised by low pay, variable hours and fewer rights and protections for workers
The disproportionate concentration of BME workers in insecure work shows “structural racism in action”, the TUC says
New analysis published by the TUC has revealed the number of Black and ethnic minority (BME) workers in insecure work more than doubled from 2011 to 2022 (from 360,200 to 836,300).
The chance of a BME worker being in an insecure job has also increased, with 1 in 6 in this position now compared to 1 in 8 in 2011.
The TUC says the “boom” in BME workers in insecure work accounts for the vast majority of the overall increase in insecure workers over the last decade.
BME workers account for two thirds of the growth of insecure workers in this period – despite BME workers making up just 14% of the overall workforce.
Insecure work is typically low-paid, and those in insecure jobs have fewer rights and protections. This means their hours can be subject to the whims of managers and they can lose work without notice.
Nation of insecure work
The TUC says the UK is becoming a “nation of insecure jobs”, with precarious and low-paid work widespread in all regions and nations of the UK.
There are 3.9 million people in insecure employment – that’s 1 in 9 across the workforce.
London (13.3%) and the South West (12.7%) have the highest proportion of people working in insecure jobs.
The industries with the highest proportion of insecure work are the elementary occupations, caring, and leisure services, and process, plant and machine operatives.
Low-paid work is increasingly insecure work – in 2011, 1 in 8 low paid jobs were insecure, but by the end of 2022, 1 in 5 low paid jobs were insecure.
“Stark inequalities”
The TUC says the disproportionate number of BME workers in insecure work shines a light on “stark inequalities” in the labour market.
The proportion of BME workers in insecure work significantly increased between 2011 and 2022, while the proportion of white workers in insecure work remained relatively stable:
The proportion of BME workers in insecure work increased from 12.2% to 17.8%.
The proportion of white workers in insecure work remained at around the same level – going from 10.5% to 10.8%.
BME workers are significantly more likely to be in insecure work compared to white workers:
BME men are almost twice as likely as white men to be in insecure work (19.6% of BME men in work compared to 11.7% white men).
BME women are much more likely than white women to be in insecure work (15.7% of BME women in work compared to 9.9% white women).
While BME employment grew between 2011 and 2022 by 1.7 million, much of the increase in employment was in low-paid and precarious insecure work.
Between 2011 and 2022, almost a third (27%) of the increase in BME employment was in insecure work, compared to just 16% for the increase in white employment.
The TUC says the explosion in the gig economy partly explains the significant rise in BME insecure employment – with the number of BME workers in low-paid self-employment surging over the past decade. TUC analysis has shown a particular rise in low paid self-employment in delivery and driving among BME men.
Structural racism in action
The TUC says the overrepresentation of BME workers in insecure work shows “structural racism in action”.
The union body says BME workers experience racism at every stage of the labour market.
This includes discrimination in recruitment processes, lower opportunities for training and development compared to white workers, being unfairly disciplined, and being typecast into specific roles often with less favourable terms and pay.
The TUC says these are “persistent barriers at work” which “hold back” BME workers across different roles and occupations, leaving disproportionate numbers of BME workers stuck in low-paid jobs, with limited rights and on precarious contracts which mean they can find themselves out of work without notice.
Recent TUC polling revealed around half (49%) of BME workers said they had experienced at least one of the following forms of discrimination at work:
1 in 7 (14%) BME workers reported facing unfair criticism in the last five years.
1 in 9 (11%) said they were given an unfair performance assessment.
1 in 13 (8%) told the TUC they were unfairly disciplined at work.
1 in 14 (7%) said they have been subjected to excessive surveillance or scrutiny.
1 in 8 (12%) BME workers said they were denied promotions.
1 in 8 (12%) BME workers reported being given harder or less popular work tasks than white colleagues.
1 in 11 (9%) told the TUC they had their requests for training and development opportunities turned down.
Government action needed
To help tackle structural racism in the labour market and end the scourge of insecure work, the TUC is calling for the government to:
Ban the abusive use of zero-hours contracts by giving workers the right to a contract reflecting their normal hours of work and ensure all workers receive adequate notice of shifts, and compensation when shifts are cancelled at short notice.
Introduce fair pay agreements to raise the floor of pay and conditions in sectors blighted by insecure work.
Crack down on bogus self-employment by introducing a statutory presumption that all individuals will qualify for employment rights unless the employer can demonstrate that they are genuinely self-employed.
End the two-tier workforce and reform the rules on employment status to ensure that all workers benefit from the same employment rights, including statutory redundancy pay, protection from unfair dismissal, family-friendly rights, sick pay and rights to flexible working.
Give workers a day one right to flexible working – not just a right to request.
Establish a comprehensive ethnicity monitoring system covering mandatory ethnicity pay gap reporting, recruitment, retention, promotion, pay and grading, access to training, performance management and discipline and grievance procedures.
TUC General Secretary Paul Nowak said: “No matter your background, everyone deserves to be treated with dignity and respect at work.
“But too many Black and ethnic minority workers are trapped in low-paid, insecure jobs with limited rights and protections, and treated like disposable labour.
“The massive and disproportionate concentration of BME workers in insecure work – like in the gig economy – is structural racism in action.
“Across the labour market, and at every stage, BME workers face discrimination and persistent barriers at work.
“From not getting the job despite being qualified for the role, to being passed over for promotion, to being unfairly disciplined at work.
“These barriers lead to stark inequalities – and it’s why we’re seeing BME workers disproportionately in the worst jobs with the worst pay and conditions.
“It’s time to end the scourge of insecure work once and for all – that’s how we start to tackle the discrimination that holds BME workers back.
“That means banning exploitative zero hours contracts. It means delivering fair pay agreements to lift pay and standards across whole industries. And it means placing a duty on employers to report their ethnicity pay gap and take action to close it.”
– METHODOLOGY
The total number in ‘insecure work’ includes:
(1) agency, casual, seasonal and other workers, but not those on fixed – term contracts
(2) workers whose primary job is a zero-hours contract NOTE – data on temporary workers and zero-hour workers is taken from the Labour Force Survey. Double counting has been excluded.
(3) self-employed workers who are paid below 66% of median earnings – defined as low pay.
TUC General Secretary Paul Nowak declares “now is the time to start a national conversation about taxing wealth”
The TUC has called for a national conversation on taxing wealth, as it publishes new analysis which shows a modest wealth tax on the richest 140,000 individuals – which is around 0.3% of the UK population – could deliver a £10.4 bn boost for the public purse.
The analysis sets out options for taxing the small number of individuals with wealth over £3 million, £5 million and £10 million, excluding pensions.
The TUC says these options are illustrative examples of what a wealth tax could look like, using Spain’s existing policy as a potential model.
“It’s time for a national conversation”
The TUC says it is publishing the analysis to “kickstart a conversation” about tax – with the TUC general secretary Paul Nowak declaring “now is the time to start a national conversation about taxing wealth”.
According to analysis commissioned by the TUC, conducted by Landman Economics, a cumulative one-off wealth tax (excluding pensions wealth) on:
A wealth threshold of £3 million with a marginal tax rate of 1.7% would yield £2.7 billion (with the tax payable on wealth above £3 million by 142,000 individuals or 0.27% of adults in the UK)
A further wealth threshold of £5 million with a marginal tax rate of 2.1% would yield an additional £3.2 billion (with the tax payable on wealth above £5 million by 48,000 individuals or 0.09% of adults in the UK)
A further wealth threshold of £10 million with a marginal tax rate of 3.5 % would yield an additional £4.6 billion (with the tax payable on wealth above £10 million by 17,000 individuals or 0.02% of adults in the UK).
Together this could raise more than £10 billion for the exchequer.
The tax would apply as a marginal rate on wealth and assets above each threshold – in the same way income tax works. For example:
Someone with £3 million wealth would pay nothing.
Someone with £4m wealth would pay tax on £1m of their wealth – paying £17,000.
Someone with £9m would pay tax on £6m of their wealth – paying £118,000
Analysis reveals that of those with wealth over £3 million (excluding pensions), three quarters derives from wealth other than their primary residence, and over half comes from financial wealth:
Net financial (non-pension) wealth: 53.3%
Primary residence: 23.6%
Other residences: 18.7%
Physical wealth: 4.4%
The TUC says further debate is needed on what type of wealth is included in this kind of tax.
The union body has already called on the government to equalise capital gains tax with income tax which could raise around £14 billion.
The union body says it is inherently “unfair and unjust” that people who get income from assets or property get off more lightly than someone who relies on work.
Tale of two Britains
The TUC says increasing wealth inequality is resulting in a “tale of two Britains”.
While working people have been “hit by a pay loss of historic proportions” after the longest wage squeeze in modern history, the wealth of multimillionaires and billionaires has boomed.
Financial wealth over the decade from 2008-10 to 2018-20 increased by around £0.9tn (80 per cent) from £1.1tn to £1.9tn.
TUC General Secretary Paul Nowak said: “It’s time to start a national conversation about how we tax wealth in this country.
“It is absurd that a nurse pays a bigger share of their income in tax than a city trader does on profits from their investment portfolio.
“That’s not only fundamentally unfair and unjust – it’s bad for our economy too.
“Our broken tax system means those at the top are hoarding wealth and getting richer and richer, while working people struggle to get by.
“That is starving our economy of spending – as it’s working people who spend their money on our high streets – and it’s starving our public services of much-needed funds.
“This research sets out potential options for getting those with the broadest shoulders to pay a fairer share.
“This is a debate we should not be afraid of having. The Chancellor should use his autumn statement to make sure the wealthiest pay their fair share of tax.”
Commenting on widening inequality over the past decade, Paul added: “Widening wealth inequality means we are seeing a tale of two Britains.
“While working people are suffering the longest pay squeeze in modern history, the super-rich are coining it in.
“Porsche sales are at record highs, bankers’ bonuses are at eyewatering levels, and CEO pay is surging.
“Enough is enough. We need an economy that rewards work – not just wealth.
“Fair tax must play a central role in rewiring our economy to work for working people.”
