Tag: 2022

“2022 has been the worst year for real wage growth in nearly half a century.

“We are now on the brink of a damaging recession with the threat of one million lost jobs.

“Ministers must act now to put money in people’s pockets – starting with boosting the minimum wage and giving our public sector workers a pay rise to match the cost of living.

”And the Prime Minister should stop attacking working people trying to defend their pay, and sit down to negotiate fair pay rises with unions.”

Analysis published by the TUC yesterday (Monday) showed 2022 is set to be the worst year for real wage growth in nearly half a century. Working people have lost, on average, £76 a month in 2022 as a result of their pay not keeping pace with inflation.

“With quarterly GDP falling, ministers should step in to stop a damaging recession and job losses.

“Britain needs a pay rise. Rishi Sunak should stop attacking working people defending their pay and sit down to negotiate fair pay rises with unions.”

• Key workers in the public sector have seen their pay plummet by £180 a month in real terms
• Working people have been “pushed to breaking point” by over a decade of pay being held down warns TUC

• Conservative government is refusing to have meaningful pay negotiations, says union body

2022 has been the worst year for real wage growth in nearly half a century, new TUC analysis reveals today (Monday).

The analysis of official statistics reveals that real wages (that is, wages after the cost of living has been taken into account) have slumped by 3.0% over the course of 2022.

This is the sharpest fall in real wages since 1977 and the second worst on record since 1945.

Working people have lost, on average, £76 a month in 2022 as a result of their pay not keeping pace with inflation.

Key workers hit hardest

Key workers in the public sector have been hit hardest by the UK’s real wage slump.

The government’s decision to hold down public sector pay means that public sector workers have lost, on average, £180 a month in real earnings over the past 12 months.

Many of the UK’s pandemic heroes have seen their wages plummet in 2022:

• Nurses’ real pay fell by £1,800 over the last year

• Paramedics’ real pay fell by £2,400 over the last year
• Midwives’ real pay fell by £2,400 over the last year

The union body say the real wage losses suffered by public service staff this year comes after a decade of “pay suppression” in the public sector.

Nurses are earning £5,000 a year less in real terms than they were in 2010. And for midwives and paramedics this rises to over £6,000.

Longest pay squeeze in 200 years

The TUC says working people have been “brutally exposed” as the cost of living has soared this year.

UK workers are currently enduring the longest pay squeeze in more than 200 years – with average pay still worth £85 a month less than in 2008.

And in the public sector average pay is down by £204 a month in real terms compared to 2008.

Pushed to breaking point

The TUC says the current wave of industrial action in Britain is the result of workers “being pushed to breaking point” by years of pay austerity.

The union body today repeated its calls for ministers to engage in meaningful pay talks.

Unions last week wrote to the Chancellor Jeremy Hunt to ask him to end the government’s refusal to hold negotiations on public sector pay.

Get wages rising

The TUC says that rather than holding down wages, ministers should be working with unions to boost workers’ living standards and spending power.

The union body said it was “nonsense” to claim that raising wages would hike inflation and that any serious plan for improving growth must involve putting more money back into workers’ pockets.

The TUC warns that without action to boost pay packets, the squeeze on household budgets will continue for years to come.

TUC General Secretary Frances O’Grady said:

“People should be able to look forward to Christmas without having to worry about how they’ll pay for it.

“But family budgets have been shredded by soaring bills and more than a decade of pay being held down.

“The Conservatives have presided over the longest real wage squeeze in over 200 years. That is a badge of shame.

“The Tories’ failure to get pay rising has left millions of households brutally exposed to the cost of living emergency.

“It’s time to reward work – not wealth. We cannot be a country where NHS and teaching staff have to use foodbanks, while City bankers are given unlimited bonuses.”

On the prospect of more strikes Frances added:

“Nobody takes strike action lightly.

“But workers have been pushed to breaking point by years of wage stagnation.

“If there are strikes across different sectors this winter the government only have themselves to blame.

“They have chosen to hold down the pay of our pandemic heroes and make the staffing crisis in our public services worse.

“Where unions are allowed to negotiate with employers they’re winning better deals – from buses to BT.

“But this Conservative government is preventing meaningful negotiations from taking place.

“Ministers seem more interested in escalating disputes than resolving them.”

• Disabled workers also more likely to be on precarious zero-hours contracts or unemployed than non-disabled workers
• Union body says ministers have done “bare minimum” on minimum wage and calls for increase to £15 an hour

Nearly three-quarters (72%) of disabled workers earn less than £15 an hour, according to new analysis of official statistics published by the TUC today (Wednesday).

The analysis – published today during disability history month – reveals that 3.09 million disabled workers around the UK are paid under the median wage of around £15 an hour.

Around half (54%) of non-disabled workers are paid less than this amount.

The TUC argues that disabled workers are over-represented in low-paid work – and says that the new increase in the minimum wage announced by the Chancellor in the Autumn statement doesn’t go anywhere near far enough in lifting workers out of poverty.

Regional and industrial analysis

The new analysis shows that in some parts of the country, even more disabled workers earn less than £15 an hour.

More than four in five disabled workers in the West Midlands (85%) and the North East (82%) earn less than £15 an hour, compared to around three in five (58% and 64%) of non-disabled workers in those regions.

And in some industries, most disabled people are paid less than £15 an hour. Nine in 10 disabled workers in wholesale, retail, repair of vehicles (94%) and arts, entertainment and recreation (89%) are paid less than £15.

Zero-hours contracts

The analysis found that disabled workers are more likely than non-disabled workers to be employed on a zero-hours contract (4.4% compared to 2.9%) with no guarantee of shifts from one week to the next.

The TUC says zero-hours contracts hand the employer total control over their workers’ hours and earning power.

This means 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.

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 now twice as likely as non-disabled workers to be unemployed (6.8% compared to 3.4%).

In November, the TUC published analysis showing that the pay gap between non-disabled and disabled workers has widened and is now 17.2%, or £3,700 a year.

TUC General Secretary Frances O’Grady said: “We all deserve a decent job with decent pay. Being disabled should not mean you’re employed on a lower wage or on worse terms and conditions.

“As the cost-of-living crisis intensifies, many disabled workers are struggling to get by.

“We already know disabled people face higher living expenses than non-disabled people. And now they’re being pushed to the brink with eye-watering bills and are having to choose whether to put food on the table or pay their bills.

“Ministers announced the absolute bare minimum on the national minimum wage and universal credit in the Autumn statement. With living costs soaring, we need to ensure that everyone has enough to get by.

“Let’s put an end to low-pay Britain and get to a £15 per hour minimum wage as soon as possible.

“And it’s also past time to introduce mandatory disability pay gap reporting to shine a light on inequality at work. Without this, millions of disabled workers will be consigned to years of lower pay and in-work poverty.”

Government action needed

To address low pay, the TUC is calling for the minimum wage to be raised to £15 an hour as soon as possible.

In August, the union body set out a roadmap to a £15 an hour minimum wage and a high wage economy.

And to further support disabled workers, the TUC wants the government to bring in mandatory disability pay gap reporting for all employers with more than 50 employees.

The union body says the legislation should be accompanied by a duty on employers to produce action plans identifying the steps they will take to address any gaps identified.

• New TUC analysis reveals more than three million disabled workers earn less than £15 an hour
• Disabled workers also more likely to be on precarious zero-hours contracts or unemployed than non-disabled workers
• Union body says ministers have done “bare minimum” on minimum wage and calls for increase to £15 an hour  

The analysis – published today during disability history month – reveals that 3.09 million disabled workers around the UK are paid under the median wage of around £15 an hour.

Around three in five (64%) non-disabled workers in the North East are paid less than this amount.

The TUC argues that disabled workers are over-represented in low-paid work – and says that the new increase in the minimum wage announced by the Chancellor in the Autumn statement doesn’t go anywhere near far enough in lifting workers out of poverty.

Zero-hours contracts

The analysis found that disabled workers are more likely than non-disabled workers to be employed on a zero-hours contract (4.4% compared to 2.9%) with no guarantee of shifts from one week to the next.

The TUC says zero-hours contracts hand the employer total control over their workers’ hours and earning power.

This means 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.

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 now twice as likely as non-disabled workers to be unemployed (6.8% compared to 3.4%).

In November, the TUC published analysis showing that the pay gap between non-disabled and disabled workers has widened and is now 17.2%, or £3,700 a year.

TUC Regional Secretary Liz Blackshaw said: “We all deserve a decent job with decent pay. Being disabled should not mean you’re employed on a lower wage or on worse terms and conditions.

“As the cost-of-living crisis intensifies, many disabled workers in the North East are struggling to get by.

“We already know disabled people face higher living expenses than non-disabled people. And now they’re being pushed to the brink with eye-watering bills and are having to choose whether to put food on the table or pay their bills.

“Ministers announced the absolute bare minimum on the national minimum wage and universal credit in the Autumn statement. With living costs soaring, we need to ensure that everyone has enough to get by.

“Let’s put an end to low-pay Britain and get to a £15 per hour minimum wage as soon as possible.

“And it’s also past time to introduce mandatory disability pay gap reporting to shine a light on inequality at work. Without this, millions of disabled workers will be consigned to years of lower pay and in-work poverty.”

Government action needed

To address low pay, the TUC is calling for the minimum wage to be raised to £15 an hour as soon as possible.

In August, the union body set out a roadmap to a £15 an hour minimum wage and a high wage economy.

And to further support disabled workers, the TUC wants the government to bring in mandatory disability pay gap reporting for all employers with more than 50 employees.

The union body says the legislation should be accompanied by a duty on employers to produce action plans identifying the steps they will take to address any gaps identified.

“The right to strike is a fundamental British liberty. With inflation running at 11 per cent, Rishi Sunak wants to make it harder for working people to win better pay and conditions.

“Public sector workers would love to be able to deliver minimum service levels. But 12 years of Conservative cuts and mismanagement have left our public services falling apart at the seams.

“Rather than attempting cheap political pot shots, the government should be getting around the table and negotiating with unions about pay. So far, ministers have seemed more interested in sabotaging talks than trying to resolve disputes.”