To Fight This Crisis, Fight for £15
The cost of living crisis is shining a light on what we’ve known for a long time: workers in this country simply aren’t paid enough. It's time for a £15 minimum wage.
Millions of families across the country are facing an emergency this winter. Last Friday, Ofgem confirmed that that the energy price cap will hit a massive £3,549 in October. That figure means that since October 2021, the price of energy will have risen by 138 percent—35 times faster than wages in the space of just a year.
The consequences of government doing nothing about this dire situation are increasingly obvious, and only set to grow worse as the coming months unfold: hungry kids, freezing pensioners, and families pushed breaking point, all while yet further pressure is heaped on our already underfunded NHS. And that’s before factoring in the further economic hit from workers not being able to afford even the basics, when the country is already on the brink of a recession.
To bring energy bills down, the TUC is demanding that government freezes the price cap, funded by an increased windfall tax on the oil and gas giants raking in record profits. It’s also time to nationalise the Big Five energy retailers: publicly owned energy retailers could offer low-cost energy to everyone to meet their basic needs, and while some government funding to keep costs down would still be needed, the government could stop excessive price rises at source—like French ministers did.
Dealing with energy costs alone, however, would mean addressing just one side of the cost of living emergency. The reality is that families have been pushed to the brink not only by the current soaring prices, but by the longest pay squeeze in two centuries.
Of course, times aren’t so tough for everyone. Last year some people did see a pay rise: CEO pay in the FTSE 100 rose by 39 percent, a massive six times faster than the minimum wage. Profits are up, dividend payouts are soaring, and bonuses in the City are at a record level.
Meanwhile, normal working people lost nearly £20,000 in real earnings between 2008 and 2021 as a result of pay not keeping pace with inflation. That stagnation has left average levels of pay at just £14.10 an hour in 2021—and the minimum wage, which is currently tied to a percentage of average earnings, at just £9.50 for those over 23, falling to a miserly £4.81 for 16 and 17 year olds. At these rates, it’s no wonder so many people can’t pay the bills.
Enough is enough: we need to get energy costs down, but we need to get workers’ wages rising too. That’s why the whole trade union movement has united around our fight for a £15 minimum wage.
The fight for £15 starts with supporting the workers battling through their unions for higher pay—workers like the Churchill cleaners on poverty pay while their company posts record profits, or like the OCS health workers on a minimum wage fighting against the outsourcing that leaves them with worse pay and conditions than their NHS colleagues. We know that the best way to deliver higher pay is through collective action, and the TUC, working through our new solidarity hub, is standing fully behind every one of these fights.
Union action is the key. Countries that enable collective bargaining across whole sectors of the economy deliver higher and more equal pay across industries. That’s why bringing in fair pay agreements where unions and business negotiate minimum pay and conditions has to be a priority.
But we need action from the government, too. Getting the minimum wage for everyone to £15 as soon as possible should be the aim for any government serious about a ‘high wage economy’, as outgoing prime minister Boris Johnson claimed to be at the start of this year—so the Low Pay Commission should be charged with setting out a route as to how we get there.
At the moment, the Low Pay Commission is tasked with getting the minimum wage for over 23 year olds to 66 per cent of average earnings. We want to see that target raised to 75 per cent—for everyone. Without that uplift, we’ll continue to see the low paid falling further behind, while our current crisis shows little sign of abating.
Our wage squeeze is currently set to be the worst in the G7 this year. And while the cost of living emergency is a new and drastic crisis, it’s shining a light on what we’ve known for a long time: workers in this country simply aren’t paid enough. It’s time to turn that around: together with investment in jobs and skills, we can help the UK catch up with other advanced economies. We’ve got to do better for the low-paid workers that keep our society going, and our plan shows us how.
Let’s unite to fight for fifteen—a vital step towards a society with a decent standard of living for everyone.