The Retail Prices Index rate of inflation increased to 12.6% today and the Consumer Prices Index reached 10.1%. Usdaw argues that RPI is a more accurate measure of inflation, particularly as it includes housing costs.
Usdaw condemns the Government for failing to guarantee an increase in Universal Credit and other welfare benefits in line with inflation, which is traditionally based on the October figure.
Voices from the frontline of the cost of living crisis: Some of the comments we received from Universal Credit claimants in our cost of living survey of nearly 7,000 Usdaw members, mainly grocery retail workers:
- “Paying for gas, electric and food is very difficult. Heat or eat is real!”
- “Not always being able to buy enough food or cover all bills”
- “Can’t afford to eat, now live off tea and toast at work”
- “We already struggled to make ends meet and now this is worse. We don’t have any spare money.”
- “Struggled to keep up with rising energy bills and the increasing cost of food.”
- “Cutting back on our already very tight food budget.”
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. Today we find that inflation has again increased to the highest level for 40 years and benefits should now be uprated by at least 10.1% and we call on the Government to immediately confirm that will happen.
“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.
“Usdaw is calling for the Government to acknowledge the pressures working people are under by increasing the minimum wage to £12 per hour, as a step towards £15, for all workers. Alongside a new deal for workers which ends insecure work, this would not only give working people the dignity of properly paid and secure employment, but also reduce the need for Universal Credit payments.”
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.
RPI v CPI: Usdaw argues that the Retail Prices Index (RPI) is a better measure of inflationary pressure on low-paid workers because it includes housing costs, like mortgage interest and buildings insurance, along with essentials such as Council Tax, Road Tax and TV Licence. The Consumer Prices Index (CPI) includes some items of no relevance to low-paid workers, such as stockbroker fees and boat maintenance costs. This month RPI is 12.6% and CPI is 10.1%.
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion