“Together we rise for fair pay” is a UNISON report on the cost-of-living crisis and how to solve it.
The cost-of-living crisis has decimated household incomes over the past twelve months. The scale and immediacy of this crisis means it is being deeply felt. And for public service workers, this downturn in living standards is especially difficult.
Over a decade of public sector pay restraint has left many of the workers who kept the country going through the pandemic vulnerable to the economic situation in which they now find themselves. While at work they provide you or your loved ones with a service you rely on, when they get home, they face mounting bills, bailiff visits and financial worry.
This report shares the findings of UNISON’s survey of low paid public service workers, earning £20,000 or lower per annum – and sets their experiences against the wider economic backdrop of this crisis.
It then explores the policy options required to tackle this crisis, and how to pay for them.
In total, the report identifies tax increases for higher earners and the wealthy which would raise £30.58 billion per year. This includes £10.1bn that could be raised from an annual 1% tax on household wealth above £5m, a 1p increase in both the higher and additional rates of income tax which would yield £1.65bn, a 1 percentage point increase in corporation tax raising £2.8bn, and increasing capital gains tax rates to match those for income tax to raise a further £8bn.
This increased revenue allows the new Prime Minister to take steps to solve the cost-of-living crisis – first and foremost by tackling low pay. UNISON’s report proposes an above-inflation pay rise for public service workers alongside increasing the national minimum wage to £15-an-hour and reforming Universal Credit, including an immediate reintroduction of the £20 a week uplift.
The report also highlights public backing for a decent pay rise for public sector workers. Three in five people (60%) agree wages for public sector workers should be increased either in line with (41%) or above (19%) inflation, according to a poll by YouGov for UNISON of more than 3,000 adults in England, Wales and Scotland. Of these, more than half (54%) thought this should be funded by a new 1% wealth tax proposed by UNISON on incomes exceeding £5 million.
In addition to a proper pay rise, solutions outlined in the report include the immediate reintroduction of the £20 a week uplift to universal credit payments which ministers removed last October, better access to affordable childcare and a review of HMRC mileage rates for staff who drive as part of their job.