Read to the end for how trade unions have decided to deal with the new anti-strike legislation, the smart initiative helping people into work in North Wales, and the next blockbuster film about unionised chickens I’m very, very excited about.
Morning team,
It’s Evie Breese here bringing you my last issue of Working On It before I head to pastures new. It’s been an absolute pleasure to bring you the week’s top employment stories each week, and I’m proud of the part we’ve played in raising the profile of labour journalism here at The Big Issue over the last two years.
It seems almost serendipitous then, that finally, for the first time in 24 cash-strapped months, wage growth has caught up with rocketing prices. The latest employment data from the Office for National Statistics (ONS) showed that wages, excluding bonuses, were up 7.8%, while July’s inflation rate eased to 6.8%. This means that prices have risen by 6.8% compared to the same month a year ago, but wages have increased by 7.8%.
But will this injection of spending power be enjoyed by all in our economy? This “short-term pay boost” could actually end up benefiting pensioners more than workers, warns Hannah Slaughter, senior economist at the Resolution Foundation.
While ministers have been keen to stress their commitment to the triple lock pensions guarantee – however costly it may be – they are looking at ways to cut benefits spending. When wage growth was below inflation in June, ministers considered uprating benefits in line with the lower measure, in a drive to reduce benefits spending. With pay growth now outpacing inflation, ministers may still choose the lowest measure next April.
“[It] would be wholly unfair to hold down working-age benefits, especially as poorer households are already set to see their incomes fall next year,” Slaughter continued, urging the government to uplift benefits in-line with the higher rate of pay growth rather than inflation.
Working On It will be taking a break before returning to your inboxes soon.