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Mini-budget must deliver immediate and targeted action on the cost of living, along with a new deal for workers says Usdaw

Retail trade union leader Paddy Lillis has written to the Chancellor of the Exchequer citing evidence of the impact of the cost of living crisis on low-paid workers.

22 September 2022

0 min read

The Usdaw General Secretary is urging the Government to use tomorrow’s mini-budget to bring forward much needed action to stem spiralling inflation and deliver a new deal for workers to tackle low pay and insecure employment.

Usdaw’s most recent cost of living survey, of thousands of members over the summer, shows that even at that point many people were struggling to pay their bills:

  • 48% reported that petrol prices and travel costs are affecting their ability to get to work.
  • 68% have had to rely on some form of unsecured borrowing in the past 12 months in order to pay bills and nearly half of those have struggled to keep up with repayments.
  • One in four missed meals every month in order to pay bills.
  • More than 70% reported that financial worries are affecting their mental health.

Paddy Lillis – Usdaw General Secretary says: “The Government’s proposal of an energy price guarantee, which still amounts to a doubling of bills since last March, will leave swathes of workers unable to pay for their gas and electricity. When we asked our members how they would cope with an increase in energy costs, 27% said they would not use heating at all, 65% said that they would significantly cut down on heating, 36% said that they would cut other essentials such as food and 19% said that they would borrow money or pay on a credit card. All these approaches create enormous risks and will have a major impact on the lives of our members.

“Moreover, the Government’s proposals on energy bills come at a point when the living standards of working people have already deteriorated significantly. For example, at the start of last year, one in twenty of our members told us they skipped meals to pay bills every month. In February this year, this increased to over one in seven. Now, it is one in four.

“As well as further immediate and targeted action on the cost of living, we also need a new deal for workers, because at the heart of the cost of living crisis is a weak employment rights framework and one-sided flexibility. This leaves working people especially vulnerable to prevailing economic headwinds and crises. Workers need the Government to act by implementing their promised employment bill. This could help give workers the protections they deserve and need. We hope the Chancellor is listening.”

Usdaw’s New Deal for Workers calls for:

  • Minimum wage of at least £12 per hour as a step towards £15 for all workers, ending rip-off youth rates.
  • Minimum contract of 16 hours per week, for everyone who wants it, that reflects normal hours worked and a ban on zero-hour contracts.
  • Better sick pay for all workers, from day one, at average earnings.
  • Protection at work, respect for shopworkers, abuse is not a part of the job.
  • Proper social security system, Universal Credit does not provide an effective safety net.
  • Job security, with day one employment rights for unfair dismissal and significant improvements to redundancy protections.
  • Fair treatment and equality for all workers, including equal pay.
  • Voice at work, stop rogue employers refusing to engage with trade unions and end ‘fire and rehire’.

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