The Retail Prices Index rate of inflation increased to 14.2% today and the Consumer Prices Index reached 11.1%. Usdaw argues that RPI is a more accurate measure of inflation, particularly as it includes housing costs.
Usdaw is calling for the following Budget measures:
- Increase minimum wage rates to at least £12 per hour, as a step towards £15, for all workers regardless of age.
- Bring forward minimum wage uprating to January, instead of April, recognising unforeseen high inflation rates.
- Increase benefit payments at least in line with inflation and bring the uprating forward to January.
- Extend free school meals to all children whose households are in receipt of income related benefits, including Universal Credit.
- Freeze deductions to benefit payments until at least the end of the cost of living crisis, as recommended by the Work and Pensions Select Committee.
Paddy Lillis – Usdaw General Secretary says: “Today inflation rose beyond expectations to hit a 41-year high; tomorrow the Chancellor can provide the help low-paid workers so desperately need as they struggle in the worsening cost of living crisis. Usdaw is calling for minimum wage rates of at least £12 per hour for all workers, regardless of age, along with an uprating of benefits by at least the level of RPI inflation. However, low-paid workers cannot wait for the normal uprating date in April and these measures must be implemented on 1 January 2023, or sooner.
“Usdaw recently conducted a survey of over 7,500 members, mainly key workers: Over three-quarters have struggled to pay an energy bill over the past twelve months; 45% no longer use the heating, and over four-in-ten have cut down on other essentials such as food. With inflation rising sharply, it is clear that the lowest paid workers cannot be expected to cope; so tomorrow’s Budget must provide urgent and essential support for low-income households.
“Usdaw is clear that the Government can help the most vulnerable in society if it chooses to. Our evidence clearly outlines why they must take the urgent steps we have called for. The decisions the Chancellor takes tomorrow will have a profound impact on the lives of millions of low-paid workers and their families. We urge him to listen to the evidence and not punish the lowest paid workers for the errors of the Conservative mini-budget.”
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. The figures released today, for the 12 months to October 2022 are RPI at 14.2% and CPI at 11.1%
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion