Following his keynote speech to the annual conference of the Trades Union Congress in Brighton, Usdaw delegate Mandy Naylor asked: “Usdaw’s survey data shows that one in four Universal Credit claimants are missing meals every month just to pay the bills, with one in five having to rely on food banks. Low paid workers have been failed by Universal Credit under the Tory austerity programme. The system is not fit for purpose and has not been structured in a way that supports low paid workers.
“How will the Labour Party put pressure on the Tories to increase all benefits in line with inflation and what plans does the Labour Party have to work with trade unions and deliver a social security system which provides an adequate safety net for the country?”
Responding, Keir Starmer said: “The statistics that you just quoted are absolutely awful, in terms of the number of people who are in real poverty now and we have to take this on. We believe that benefits should go up in line with inflation and the Government used to believe that until a few days ago. So in the short-term we will work with Tory MPs who feel strongly about this to make sure we put up a united opposition in Parliament to what the Government is proposing.
“In the longer term I do think we need to reform aspects of our benefits system, where they’re not working and I know work with the trade unions has already started on that. We do have to ask ourselves why in this country we have so many working people who are also reliant on benefits, because they simply aren’t paid enough. That is shocking and that’s why we need to grow the economy and have well paid jobs.”
Paddy Lillis – Usdaw General Secretary says: “The Government is still not doing the decent thing, providing the assurance that low-paid working people need and guaranteeing that welfare benefits, including Universal Credit, will rise in line with inflation. So we very much welcome Labour’s commitment to fight for a fair uprating for workers reliant on Universal Credit.
“After the cruel £20 cut a year ago, earlier this year Universal Credit claimants suffered a pitiful 3.1% increase when inflation was over 8%, a huge real terms cut in income for the lowest paid workers. To receive a further derisory increase next year will plunge many working people further into poverty, with inflation now over 12%, prices skyrocketing and energy bills doubling since last winter.
“Universal Credit remains universally discredited. Usdaw has consistently called for a fundamental overhaul of the Universal Credit system and how the Government supports the incomes of working people. We need a proper social security system that supports families and provides a proper safety net.
“Keir Starmer is right to acknowledge that a new deal for workers which ends low-paid insecure work would not only give working people the dignity of properly paid and secure employment, but also reduce the need for Universal Credit payments. It is clear that we will only achieve our aims under a Labour Government.”
Usdaw has long called for a fundamental reform of Universal Credit, including:
- Significant investment in Universal Credit, to ensure it provides a social security benefit that more consistently supports workers in low-paid employment.
- Five week wait scrapped, by making advance payments non-repayable.
- Two-child limit removed.
- Reducing the taper rate and increasing the work allowance to incentivise work.
- Benefit Cap stopped.
- Universal Credit payments paid to the main carer by default.
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