Tag: TUC

  • PRESS RELEASE : Kate Bell appointed as new Assistant General Secretary of the TUC [December 2022]

    PRESS RELEASE : Kate Bell appointed as new Assistant General Secretary of the TUC [December 2022]

    The press release issued by the TUC on 6 December 2022.

    Kate Bell has today (Tuesday) been appointed as Assistant General Secretary of the TUC.

    Kate will take up the post next year and work alongside incoming TUC General Secretary Paul Nowak who will lead the union federation from January 2023.

    Kate joined the TUC in 2016 as the organisation’s head of economics, international and employment rights department.

    Kate played a lead role in securing the furlough scheme during the pandemic – leading vital meetings with ministers and civil servants.

    She has also led the TUC’s campaign for a £15 minimum wage, common ownership in the energy sector and stronger worker bargaining rights.

    Before joining the TUC, Kate worked as Head of Policy and Public Affairs for a local authority.

    She also worked for the Labour Party, and for the charities Child Poverty Action Group and Gingerbread.

    Kate is also a member of the Low Pay Commission, representing workers.

    Commenting on the appointment, TUC General Secretary Designate Paul Nowak said:

    “Kate brings a wealth of experience to this post.

    “She will play a key role in supporting unions during this cost of living crisis to win for their members.

    “She has led the TUC’s policy work across range of crucial areas. And I know she is totally committed to working with unions to shift the balance of wealth and power to working people.

    “I look forward to working closely with her. She is a great asset to the TUC and the wider movement.”

  • PRESS RELEASE : Ministers must support those with Long Covid, says TUC [December 2022]

    PRESS RELEASE : Ministers must support those with Long Covid, says TUC [December 2022]

    The press release issued by the TUC on 5 December 2022.

    Responding to new figures published this morning (Monday) on Long Covid by the Office for National Statistics (ONS), TUC General Secretary Frances O’Grady said:

    “Around two million people in the UK are living with Long Covid – more than the populations of Manchester and Birmingham combined.

    “Economic inactivity is rising almost 10 times as fast for people with Long Covid than for those without the condition. And older workers are being hit the hardest.

    “Ministers must ensure everyone with Long Covid is recognised as disabled under the Equality Act. This will give them the support they need to continue to do their jobs and formal protection under employment law.

    “And Long Covid must also be recognised as an occupational disease. That would entitle employees to protection and compensation if they contracted the virus while working.

    “It’s a scandal that more than two and a half years after the first lockdown, the workers who kept our country going through the pandemic have still been offered no support.”

    The ONS figures show that:

    • Between July 2021 and July 2022, the inactivity rate among working-age people with self-reported Long Covid grew by 3.8 percentage points, compared with 0.4 percentage points among working-age people without self-reported Long Covid.
    • The relationship between self-reported Long Covid and inactivity (excluding retirement) was strongest for people aged 50 to 64 years, where the higher odds of inactivity compared with pre-infection peaked at a 71.2% increase among people reporting Long Covid 30 to 39 weeks post-infection.
  • PRESS RELEASE : Under 21s face £2.5 billion minimum wage “pay penalty” for being young workers [December 2022]

    PRESS RELEASE : Under 21s face £2.5 billion minimum wage “pay penalty” for being young workers [December 2022]

    The press release issued by the TUC on 2 December 2022.

    • NEW ANALYSIS: Almost one million under-21s “left hugely out of pocket” due to “unfair” minimum wage rates
    • It’s time for an “overhaul” of the minimum wage rates and a £15 minimum wage as soon as possible, says TUC

    The TUC has today (Friday) published new analysis which reveals 900,000 under-21s across the UK are currently being left “massively out of pocket” due to being paid a lower rate of the minimum wage.

    The minimum wage pay penalty facing under-21s this year has been an estimated £2.5 billion.

    That works out at an average of £2,800 in lost in wages for every worker under-21 paid less than the full minimum wage.

    The main minimum wage is currently £9.50. However, it is £9.18 for 21-22 year olds, £6.83 for 18-20 year olds and £4.81 for under 18s. These rates are going up in April to £10.42, £10.18, £7.49 and £5.28 respectively following recommendations to government from the Low Pay Commission.

    The TUC says that paying a lower rate to young adults is “unfair” and that the tiered-rates system must be “overhauled”.

    The government is taking steps to bring 21 and 22 year olds into the main minimum wage rate by 2024. But the TUC says this does not go far enough and the full minimum wage should extend to all young workers.

    Those aged 18-20 continue to be paid 28 per cent less than the minimum wage. And for those aged under 18, the minimum wage is a massive 49 per cent below the main rate.

    An overwhelming majority of workers aged under 21 (70%), which is the cut off for youth rates, receive less than the full minimum wage.

    As well as demanding all workers be eligible for the same minimum wage, the union body is calling for a £15 minimum wage as soon as possible to put an “end to low-pay Britain”.

    The UK is experiencing the longest and harshest wage squeeze in 200 years – and it is on course to face two lost decades of living standards.

    The research comes at the end of the TUC’s young workers’ month, which is aimed at promoting trade unions to young workers.

    TUC General Secretary Frances O’Grady said:

    “A fair day’s work deserves a fair day’s pay.

    “But too many young workers are being left hugely out of pocket because of outdated youth rates of the national minimum wage.

    “Almost a million workers under 21 face this pay penalty – getting less than older workers for doing the same job.

    “Young people up and down the country are being hammered by the cost-of-living crisis – like everyone else, they need more money in their pockets now.

    “It’s time to end this glaring injustice so that all workers are entitled to the same minimum wage.

    “And it’s time for ministers to deliver a plan for a £15 minimum wage so that we can put an end to low-pay Britain for good.”

  • PRESS RELEASE : Women much more likely than men to have flexible work arrangements that lead to loss of hours and pay [November 2022]

    PRESS RELEASE : Women much more likely than men to have flexible work arrangements that lead to loss of hours and pay [November 2022]

    The press release issued by the TUC on 30 November 2022.

    Women are three times more likely to work part-time and nearly four times more likely to work term-time only than men
    • But men who work flexibly are most likely to be working from home
    • TUC calls on ministers to quickly act on their promise to extend and strengthen flexible working rights, so everyone has access to well-paid flexible work

    Women are much more likely than men to be in flexible working arrangements that mean they lose hours, and therefore pay, according to new TUC analysis of official statistics.

    The findings are published today (Thursday), a year to the day the government closed its consultation on flexible work, and ahead of the next committee stage of Yasmin Qureshi MP’s private members bill on flexible work.

    Flexible work 

    Millions of people across the UK are now working flexibly. Flexible working can take lots of different forms, including working from home, job sharing, compressed hours, part-time and term-time working.

    Some of these arrangements, like part-time and term-term only working, have a financial impact as staff work less hours so receive less pay.

    But other forms of flexible work, like home working and compressed hours, mean workers can continue to work full-time and not lose hours and therefore pay.

    Flexible work arrangements with less hours 

    The new TUC analysis reveals that women are much more likely than men to be in flexible working arrangements that mean they work less hours and take a salary hit, like part-time and term-time only working.

    The union body argues that a lack of good flexible working opportunities and the unequal division of caring responsibilities is forcing some women into flexibility that results in loss of pay:

    • Part-time: Part-time working (less than 30 hours a week) is by far the most common form of flexible working arrangement for women. More than one in three (35.7%) work part-time, compared to just one in nine (11.5%) men. According to the most recent figures from the Office for National Statistics (ONS), a woman working part-time is paid on average £5.40 an hour less than a full-time man (a 33% pay gap). And not only are part-time workers paid less than full-time workers – but they have fewer career, pay and progression opportunities compared to full-time workers.
    • Term-time only: Nearly one in 13 (7.9%) of women work term-time only, for around 39 weeks of the year instead of 52 weeks (75% of the year). But less than one in 50 (1.8%) men choose this option, so women are over four times more likely than men to be working term-time only.
    • Job sharing: While job sharing is the least common form of flexible working arrangement, women are three times more likely than men (0.6% compared to 0.2%) to be in a job share role – where more than one worker shares a job.

    Homeworking 

    However, the picture with homeworking is different. The analysis reveals that even before the pandemic, men were more likely than women to be working at home, which doesn’t result in a loss of hours.

    In 2019, one in 13 (8%) men were working at home, compared to one in 17 (6%) women. And in 2021, nearly one in 4 (23%) men worked mainly at home, compared to just over one in 5 (21%) women.

    Even in jobs dominated by women, men are more likely than women to be homeworking:

    • In arts and recreation, where over half (52%) of employees are women, only one in six (16%) work from home, compared to around one in five (19%) men.
    • And in accommodation and food, (again where more than half, 56%, of the workforce are women), around one in 50 (2%) women work at home, compared to one in 25 (4%) men.

    The TUC argues that greater access to all types of flexible working arrangements would provide more opportunity for women to take up the types of flexibility – should they want to – that do not impact hours worked and pay.

    The union body says that part-time jobs must also be designed to ensure they offer equivalent pay, and the same career and progression opportunities, so that those who do want to work part time don’t miss out.

    And normalising and improving flexible working options would also encourage more men to take up these options and share caring responsibilities, says the TUC.

    TUC General Secretary Frances O’Grady said: “Flexible work shouldn’t always mean less hours or less pay.

    “But too often, women pay a heavy financial price for trying to balance their work and caring responsibilities, being forced to drop hours – and lose pay – rather than fork out for extortionate childcare costs.

    “This isn’t right. We need to ensure everyone has access to as many flexible working options as possible – not just the ones that leave you worse off.

    “Flexible working lets people both work and support their families. It’s how we keep mums in their jobs and close the gender pay gap. It gives dads more time with their kids. And it helps disabled workers, older workers and carers stay in work.

    “But the current system isn’t working. Employers can turn down flexible working requests with impunity. And workers are too scared to ask about flexible working when applying for a job, for fear of not getting appointed.

    “Ministers promised to modernise employment law to make flexible working options the norm for every job.

    “The way to do that is for ministers to require all jobs to be advertised with the possible flexible working options stated – and to give all workers the legal right to work flexibly from their first day in a job.”

    Government consultation

    Ministers have promised to strengthen flexible working. The government ran a flexible work consultation at the end of last year.

    Over 5,700 people submitted a response to this but almost a year on, they are still waiting for the results.

    The TUC wants the consultation to deliver real flexibility for working people, including:

    • Unlocking the flexibility in all jobs. Every job can be worked flexibly. There are a range of hours-based and location-based flexibilities to choose from – and there is a flexible option that will work for every type of job. Employers should think upfront about the flexible working options that are available in a role, publish these in all job adverts and give successful applicants a day one right to take it up.
    • Making flexible working a genuine legal right from the first day in a job. People should have the right to work flexibly from day one, unless the employer can properly justify why this is not possible. Workers should have the right to appeal any rejections. And there shouldn’t be a limit on how many times you can ask for flexible working arrangements in a year.
  • PRESS RELEASE : Ministers must not abandon workers with Long Covid [November 2022]

    PRESS RELEASE : Ministers must not abandon workers with Long Covid [November 2022]

    The press release issued by the TUC on 21 November 2022.

    Commenting on a report published by the Industrial Injuries Advisory Council – the body advising government on which diseases should be classified as work-related – which recommends that health and social care workers experiencing long term symptoms following Covid infection should be able to claim industrial injuries benefit – TUC General Secretary Frances O’Grady said:

    “Workers in health and social care are among the most likely to be infected with Covid-19 while doing their job, and many are still suffering the consequences of long-term ill health effects.

    “It’s time to recognise this condition as occupational, and make sure workers who are living with post-Covid symptoms get the support they need.

    “The government has followed IIAC advice on work-related disease prescription for seventy-five years. Now cannot be the time they do not take heed of the Council’s advice. Ministers must accept the recommendations of the IIAC and ensure that our health and social care workers, made long-term ill as a result of Covid exposure at work, get financial support.

    “We owe this to the key workers who kept our country going through the pandemic. Anything less would be a national scandal.”

    The TUC is calling on government to go further and recognise Long Covid as:

    • A disability. Some people with Long Covid are already recognised as disabled under the law but adding it as a named disability to the Equality Act would ensure everyone with symptoms is protected and would have a right to get reasonable adjustments at work.
    • An occupational disease. in other sectors beyond health and social care.: this would entitle more front-line workers to protection and compensation if they contracted the virus while working.
  • PRESS RELEASE : Non-disabled workers paid 17% more than disabled peers – TUC [November 2022]

    PRESS RELEASE : Non-disabled workers paid 17% more than disabled peers – TUC [November 2022]

    The press release issued by the TUC on 7 November 2022.

    New analysis shows pay gap between non-disabled and disabled workers is now 17.2%, or £3,700 a year
    • Disabled women face even bigger pay penalty of 35%, over £7,000 a year
    • TUC writes to government to call for mandatory disability pay gap reporting

    New analysis published by the TUC today (Monday) shows that non-disabled workers now earn a sixth (17.2%) more than disabled workers.

    The analysis found that the pay gap for disabled workers currently stands at £2.05 an hour – or £3,731 per year for someone working a 35-hour week.

    This pay gap – which has increased from 16.5% last year – means that disabled people effectively work for free for the last 54 days of the year and stop getting paid today, on the day the TUC has branded Disability Pay Gap Day.

    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 35% (£3.93 an hour, or £7,144 a year) more than disabled women.

    The research also shows that the disability pay gap persists for workers throughout their careers. It starts at age 20 at 65p an hour and increases steadily with age to a peak of £3.55 an hour, or £6,461 a year, for disabled workers aged 40 to 44.

    Regional and industrial disability pay gaps

    The analysis looked at pay data from across the country and found disability pay gaps in every region of England.

    The highest pay gaps are in the South East (22% or £2.78 an hour), and the West Midlands and the South West (both 17% or £2.20 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 39% or £5.90 an hour, followed by agriculture, forestry and fishing (24%) and mining and quarrying and admin and support services (both 18%).

    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%).

    And the analysis shows disabled BME workers face a much tougher labour market – 10.9% of BME disabled workers are unemployment compared to 2.8% of white non-disabled workers.

    TUC General Secretary Frances O’Grady said: “Everybody deserves a fair chance to get a job with decent pay. Being disabled should not mean you’re on a lower wage – or that you’re excluded from the jobs market altogether.

    “It’s 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.

    “During the pandemic, many disabled people were able to work flexibly or from home for the first time. We must ensure this continues – flexible workplaces are accessible workplaces and give everyone better work life balance.

    “Ministers must change the law so that all jobs are advertised with flexible options clearly stated, and all workers have the legal right to work flexibly from their first day in a job.”

    Disability pay gap reporting

    The TUC has today (Monday) written to the government to call for urgent action to address the disability pay gap.

    The union body wants the government to bring in mandatory disability pay gap reporting for all employers with more than 50 employees.

    The TUC 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.

    Government action needed

    To address the causes of the pay gap, the TUC is calling for:

    • The National Minimum Wage to be raised to £15 an hour as soon as possible.
    • More funding for the Equality and Human Rights Commission (EHRC) to enforce disabled workers’ rights to reasonable adjustments. The EHRC must update their statutory code of practice to include more examples of reasonable adjustments, to help disabled workers get the adjustments they need quickly and effectively.
    • A stronger legal framework for reasonable adjustments including: ensuring employers respond quickly to requests, substantial penalties for bosses who fail to provide adjustments and for reasonable adjustment passports to be mandatory in all public bodies.
    • A day one right to flexible working for everyone and a duty on employers to include possible flexible working options in job adverts.
  • PRESS RELEASE : 1 in 4 children with care worker parents are growing up in poverty [November 2022]

    PRESS RELEASE : 1 in 4 children with care worker parents are growing up in poverty [November 2022]

    The press release issued by the TUC on 2 November 2022.

    • Union body warns of “rampant” hardship in key worker households
    • 1 in 5 children growing up in key worker households are living in poverty 
    • Ministers accused of “abandoning” the workers who got us through the pandemic
    • Mass Westminster lobby and rally to take place to demand general election

    More than 1 in 4 (28.4%) children with care worker parents are growing up in poverty, according to new TUC analysis published today (Tuesday).

    The analysis – carried out by Landman Economics – shows that 220,000 kids with at least one social care worker as a parent are in poverty.

    The union body warned this number is on course to rise to nearly 300,000 by the end of this parliament unless swift action is taken to boost pay and conditions.

    Key worker poverty “is rampant”

    The TUC analysis reveals that child poverty “is rampant” in key worker households. In addition to care staff:

    • Nearly a tenth (9.4%) of kids with nurses as parents are living below the breadline. This represents over 70,000 children.
    • 1 in 9 (10.8%) children with teaching staff as parents are growing up in poverty. This represents around 100,000 children.
    • 1 in 8 (11.8 %) kids of local government workers are growing up in poverty. This represents over 220,000 children.
    • 1 in 4 (25%) children with public transport workers as parents have kids growing up in poverty. This represents 50,000 children.

    Overall, the TUC estimates that 1 in 5 (19%) key worker households have children living in poverty.

    Worse set to come

    The TUC warned that child poverty rates among key worker households are likely to get worse.

    Ministers have announced another of year of real-terms pay cuts for millions of key workers in the public sector.

    This will result in the average nurse losing £1,100 in real wages this year. And in social care 6 in 10 workers are still being paid less than £10 an hour.

    The TUC says the additional support announced by the Treasury to help families with energy bills will be offset by cuts to real-terms pay and other rising living costs.

    TUC polling published last month revealed that 1 in 7 UK workers were skipping meals and going without food to make ends meet.

    And the same poll showed that over half of UK households were cutting back on central heating, electricity and hot water to save money.

    Mass lobby of parliament and rally

    The findings are published as workers from across Britain assemble for a mass rally and lobby of MPs in central London on Wednesday 2 November.

    From 2pm, trade union members from across the UK will head to the Palace of Westminster for appointments which will start at 2.30pm.

    The mass rally will begin at Westminster Central Hall from 6pm.

    Speakers will include Frances O’Grady, RMT General Secretary Mick Lynch, CWU General Secretary Dave Ward and frontline workers taking strike action .

    Hundreds of union members from all over the country will be in the audience and the rally is expected to finish at around 8pm, when attendees will disperse.

    We demand better

    The TUC and unions are calling for:

    • Universal credit, benefits and pensions to be updated at least in line with inflation
    • A much higher windfall tax on oil and gas companies
    • Pay to rise across the economy through sector-wide fair pay agreements
    • Key workers in the public sector to be given cost-of-living proofed pay rises
    • A £15 an hour minimum wage as soon as possible

    Commenting on the analysis, TUC General Secretary Frances O’Grady said:

    “Our amazing key workers risked their lives to get us through the pandemic. The very least they deserve is to be able to provide for their families.

    “But many have been trapped in poverty and abandoned by this government.

    “The Conservatives’ decision to hold down wages – as living costs soar – is causing rampant hardship.

    “We can’t go on like this.

    “We can’t be a country where bankers are allowed to help themselves to bigger bonuses, while nurses and care staff are forced to use foodbanks.

    “There must be a general election now.”

  • PRESS RELEASE : TUC Call for £15 Minimum Wage

    PRESS RELEASE : TUC Call for £15 Minimum Wage

    The press release issued by the TUC on 23 August 2022.

    The TUC has set out, today, a plan for pay growth underpinned by a £15 minimum wage. As workers struggle to stay afloat, it is clear that higher wages have to be at the heart of the UK’s economic strategy.

    We need to transition the economy to high-wage, high-skilled and secure jobs. And shift our economic model away from a reliance on low-paid and insecure work.

    As part of our package of measures to deal with the cost of living crisis, the TUC is also calling for the minimum wage to be uprated by at least inflation this October – as opposed to April next year when the uprating was due.

    The minimum wage began life in 1999 against a backdrop of opposition from Tories, business groups, and even some economists. But since then, we have proven that the minimum wage is effective. It has delivered pay increases for the lowest paid workers, without causing job losses. There is now a widespread consensus in favour of the minimum wage. This reaches across academic experts and across political divides.

    The TUC believes it is time for the minimum wage to take the next step. But if the minimum wage is just £9.50 an hour now, how do we get to £15? Here’s the plan:

    1) Deliver a return to normal pre-crisis wage growth

    Workers are living through the longest and harshest wage squeeze in 200 years, but it hasn’t always been like this. Up until the financial crash, wages saw sustained growth in every decade in modern [sic]

    This wage stagnation has held the minimum wage back, because the wage floor is explicitly tied to median wages. The government must deliver a return to normal wage growth so workers get proper pay rises for the first time in over a decade.

    We need to see sustained pay growth, year on year, so that median wages reach £20 an hour as soon as possible. This will underpin our £15 minimum wage. The government can make wage growth happen by delivering:

    • A macroeconomic approach which boosts demand and creates growth
    • A plan to strengthen and extend collective bargaining across the economy including introducing fair pay agreements to set minimum pay and conditions across whole sectors
    • A life-long learning and skills strategy to fill labour shortages, boost productivity and so workers can update their skills throughout their working life
    • Corporate governance reform to prioritise long-term sustainable growth, rather than short-term focus on shareholder returns
    • Industrial and trade policies to promote good jobs and ensure that businesses compete on a level playing field
    • Making decent jobs a requirement of all government spending and procurement.

    2) Raise the minimum wage target to 75% of median wages

    Secondly, the TUC believes government should raise its target for the minimum wage. The current target is 66 per cent of median wages by 2024. The obvious next step is 75 per cent.

    Since it was introduced, the minimum wage has increased as a proportion of the median wage. The wage floor was introduced at 47 per cent and is now on its way to 66 per cent by 2024. As unions predicted, the evidence continues to show a positive effect on wages and no job losses.

    The government should set its next target at 75 per cent of median wages and make progress towards this. The Low Pay Commission should be responsible for the path based on consultation and negotiation through its social partnership model which brings together unions, and independent experts. This model provides an effective way to make sure we can keep the minimum wage rising over time.

    Conclusions

    If our plans are implemented, we will get:

    • A return to normal wage growth getting average wages up to £20 an hour
    • 75% minimum wage target establishing a £15 an hour minimum wage

    This must be delivered as soon as possible. A government that is serious about wage growth will be able to get us there. And trade unions will also play a key role in getting wages to these levels more quickly. Workers in unions will see bigger pay rises. And in sectors with good collective bargaining coverage, a £15 floor will be implemented earlier. Fair Pay Agreements should be rolled out, and anti-trade union legislation should be repealed, so workers can win higher pay ahead of the minimum wage. Unions are already fighting for £15 in workplaces up and down the country and its time employers paid up.

  • PRESS RELEASE : TUC publishes plan to cut bills through public ownership of energy retail

    PRESS RELEASE : TUC publishes plan to cut bills through public ownership of energy retail

    The press release issued by the TUC on 25 July 2022.

    Public ownership of energy retail companies would reduce bills, speed up energy efficiency improvements to UK homes, and cut carbon emissions faster, according to a new TUC report published today (Monday).

    The TUC’s Affordable Energy Plan would keep bills down by:

    Ending shareholder dividends, making more money available to cut bills

    Unlocking incentives to make homes energy efficient

    Enabling pricing structures with much lower costs for basic energy needs

    The plan is published shortly before next month’s announcement from Ofgem of a new increase to the energy price cap, which is expected to bring average bills to more than £3,200 – a rise of over 150% in just one year.

    Cost of failed privatisation

    Since June 2021, the UK government has spent £2.7 billion bailing out 28 energy companies that collapsed after putting short-term profits ahead of long-term stability – companies like Bulb and Avro Energy.

    Ministers have also had to allocate £12 billion to directly cut the cost of household bills.

    However, the TUC says that if energy firms had already been in public ownership, bills could have been kept down without such a high cost to the public purse.

    In France, where national provider EDF is currently 84% publicly owned, household energy bills rose by just 4% this year. The French government as the main EDF shareholder was able to instruct the firm to cut profits to keep prices down. The TUC says if energy retail was publicly owned, the UK would be able to take a similar approach.

    The long-term burden of privatisation

    Even before the current energy price crisis, families were already paying the price of privatisation through higher bills to fund private profits.

    Research by Common Wealth shows that UK energy retailers paid shareholders more than £23 billion in the last 10 years. And most of these dividends went overseas to large foreign shareholders.

    A publicly owned energy provider could have used this wasted cash to reduce bills and bring forward energy efficiency measures to make family homes cheaper to heat and power.

    But the TUC says that privatisation has held back energy efficiency home improvements. Energy companies are incentivised to sell more energy to make profits for shareholders – not to invest to cut energy use.

    Public ownership is affordable

    Based on payments for shares in recent market transactions, nationalising the Big Five energy retail companies (British Gas, E.ON, EDF, Scottish Power and Ovo), would cost £2.85 billion.

    By contrast, the government has already spent £2.7 billion over the past year bailing out failed private energy firms, including £2.2 billion for just one firm alone – Bulb.

    Taking these five companies into public ownership would move more than 70% of households out of the failed private energy retail system.

    And it would cost only around a quarter of what ministers will spend this year protecting families from the soaring prices charged by private energy retailers.

    Public ownership can make bills affordable

    Once in public ownership, the burden of paying shareholder dividends would no longer be carried by UK households, allowing lower bills and more investment in energy efficiency.

    Publicly owned energy companies would have a strong incentive, and the capacity, to roll out energy efficiency improvements to all UK homes, significantly reducing bills.

    And they will have the power to set energy prices aimed at affordability for customers, rather than maximising profits for shareholders.

    The TUC plan sets out how a publicly-owned energy retail system could deliver a social pricing structure that lets everyone afford the energy they need to cook, clean, and stay warm all year round, while those with extravagant energy use pay more per unit.

    Under the TUC’s plan, every household would receive a free band of energy to cover basic lighting, heating, hot water and cooking. And bills for low-income families would be capped at 5% of typical household income.

    TUC General Secretary Frances O’Grady said:

    “Families should be able to afford their basic energy needs.

    But energy firms rinsed us for private profit in the good times, then doubled our bills when the going got tough. That’s why bills are soaring now.

    It is time to lift the burden of failed privatisation off families. No more shareholder pay-outs. No more fat cat bonuses. No more take-the money-and run-companies that collapse overnight. Just fair prices from an energy company owned by us all and run for our benefit.”

    On social pricing, Frances added:

    “Everyone should have enough affordable energy to cook, clean and keep their home warm.

    But anyone heating a private swimming pool should expect to pay a higher rate for their luxury lifestyle.”