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Chancellor urged by Usdaw to use his Budget to boost the incomes of low-paid workers who are struggling with the cost of living crisis

Date: 15 November 2022 Retail trade union leader Paddy Lillis, Usdaw General Secretary, has written to the Chancellor of the Exchequer ahead of the Budget on Thursday 17 November, urging him to help low paid workers cope with the cost of living crisis by boosting their incomes. The union has suggested five key measures for the Government to adopt and implement.
Usdaw is calling for the following Budget measures:
  • Increase minimum wage rates to at least £12 per hour, as a step towards £15, for all workers regardless of age.
  • Bring forward minimum wage uprating to January, instead of April, recognising the unforeseen high inflation rates.
  • Increase benefit payments at least in line with inflation and bring the uprating forward to January.
  • Extend free school meals to all children whose households are in receipt of income related benefits, including Universal Credit.
  • Freeze deductions to benefit payments until at least the end of the cost of living crisis. 
Ahead of the Budget, Usdaw has surveyed over 7,000 members. For those on in-work benefits our survey found:
  • More than one-in-three struggle to pay their energy bills every month.
  • Over three-quarters struggle to pay an energy bill over the past twelve months.
  • 40% are on a pre-payment meter, meaning they will have higher tariffs on average, compared to 28% of all respondents.
  • 45% no longer use the heating and over four-in-ten have cut down on other essentials such as food.
Looking solely at workers earning less than £12 per hour, our survey shows that:
  • Two-thirds have struggled to pay energy bills in the last year.
  • One in five has either regularly or occasionally been late with rent or mortgage payments this year.
  • Two-thirds have to rely on unsecured borrowing to pay everyday bills. 
Paddy Lillis – Usdaw General Secretary says: “Usdaw’s evidence is clear that those in receipt of in-work benefits or earning less than £12 per hour, typically the lowest income households, are severely struggling through the crisis. With inflation not expected to start falling until the middle of next year, it is clear that the lowest paid workers cannot be expected to cope with continued price rises.
 
“So the Government must use the Budget to provide urgent and essential support to low-income households. Usdaw is calling for this support to include an increase to benefit payments at least in-line with inflation and a significant rise in minimum wage rates, to be paid from 1 January 2023. The current level of the National Minimum Wage and the National Living Wage are simply not high enough to enable working people to meet essential living costs. A £12 an hour minimum wage will help to relieve the huge financial burden on low paid workers.
 
“Back in July, the Work and Pensions Committee recommended that deductions from benefits, which would usually be taken to recover money owed for a variety of debts and advances, should be paused. Their report found that these deductions were forcing some low-paid workers to use food banks. We wholeheartedly support this recommendation, alongside the other measures we have outlined.
 
“Usdaw is clear that the Government is in a position to help the most vulnerable in society if it chooses to. Our evidence clearly outlines why they must take the urgent steps we have called for. The decisions the Chancellor takes in this week will have a profound impact on the lives of millions of low-paid workers and their families. We urge him to listen to the evidence and not punish the lowest paid workers for the errors of the disastrous mini-budget.”
 
Voices from the frontline of the cost of living crisis: Some of the survey responses Usdaw received:
  • “We worry about being made homeless as we are unlikely to be able to afford our mortgage when the fixed rate ends.” - Funeral industry worker, South West.
  • “I’m not going to be able to get my kids Christmas presents.” - Warehouse worker, North West.
  • “My dinner today is two slices of toast so the kids can eat.” - Retail worker, Wales.
  • “Have sold sentimental items to buy food. Committed to working hard but I’m only surviving, no luxuries, feel like a failure to my kids.” - Funeral Worker, North East.
  • “I wish I could afford to buy decent food including fresh fruit on a large scale. I struggle to buy clothes for my children. They have one pair of school shoes and one pair of trainers. No wellies.” - Retail Worker, Midlands.
  • “I can’t afford food or clothes for my daughter. We sit with blankets around us in the house or just go to bed early. In fact she has started to sleep in my bed for the heat of both of us.” - Retail Worker, Northern Ireland.
  • “Use a food bank as now can’t afford one meal a day for my children and me with everything else.” - Retail Worker, Greater London.
  • “I go without meals sometimes so my child has food.” - Retail Worker, Scotland.
  • “I wake up every night worrying if I have enough to cover the bills or food shop.” - Retail Worker, South East
  • “I struggle with depressions, I feel worthless most of the time, I've had to take on more hours meaning I'm not properly seeing my kids 4 days a week. My middle child is autistic and I feel awful because I have to work silly hours as I have to work around my partner as we cannot afford child care.” - Retail Worker, Yorkshire and the Humber
  • “I can’t afford to put the heating on, or use the oven. I have fibromyalgia and widespread osteoarthritis and the cold and damp make the pain worse. I am in debt with my electricity supplier to a four figure sum and I am unable to clear the debt even with the cost of living payments issued. I can’t cut back on anything else and don’t know how I will get my family through the cold winter months.” Retail worker, East of England. 
Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades.
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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