Published: November 9th 2011 - at 11:20 am

Is it fair to freeze benefits as union members get low increases?


by Richard Exell    

Many union members are getting pay increases of less than three per cent. So is it fair for people on benefits to get an increase of 5.2%, which is what the policy of uprating in line with inflation would mean?

It looks as though the government will exclude pensions from the freeze, if they go ahead with this plan.

The government is flagging up this exclusion because even they can see that this would be unfair: pensioners have paid for their benefits through National Insurance Contributions and many would be forced into ever-deeper poverty as prices rose and their pensions didn’t.

But those arguments apply just as strongly to non-pensioners on benefits.

People on contributory Jobseeker’s Allowance and contributory Employment and Support Allowance have also paid for their benefits through their NI Contributions. And people on means-tested benefits are already on very low incomes, whether they are above or below pension age.

The Minimum Income Standard found that:

basic out-of-work benefits provide well under half of the minimum income (net of rent and council tax) required for an adult with no children, and somewhat less than two-thirds for families with children.

If the government goes ahead with this, the number of children in poverty – already due to rise 200,000 by the time of the next election – will rise even further. I hope the government will decide that forcing children into poverty is as politically risky as doing the same to pensioners.

If anyone doubts what this could mean, it’s worth looking at this story from yesterday’s Coventry Telegraph: an ex-serviceman and his wife, who have committed suicide after being denied benefits.

Sometimes commentators on my posts take great pleasure in telling me how worthless people on benefits are, that most of them are fraudulent and that we give them too much. This story from Coventry may be extreme: but so are the stories about fraud that dominate media coverage of social security.

Trade union members should support 5.2% for peoople on benefits even when we’re getting less. We should do this for the same reason that we sometimes negotiate pay increases that benefit our lowest paid members more than other people: they are in the weakest position and are the least able to cope with austerity.

It’s called solidarity.


cross-posted from the Touchstone blog


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About the author
Richard is an regular contributor. He is the TUC’s Senior Policy Officer covering social security, tax credits and labour market issues.
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Reader comments


Pay Rise?
What is this pay rise you speak of? I’ve heard of these things but for those of us who work in small businesses the idea of any kind of pay rise even 3% would be kind of nice.
Ah well. Back to the grind stone.

The other point being of course is that a union member could be on benefits in the near future. Think long term, not just today’s pay packet.

Erm, should the unions be concerned particularly with the rate of benefits? It kind of is outside the core purpose of unions by definition.

So this will be unions as a political movement, not as unions for workers (there is a clear difference – which may be put thus, does Richard deal with cases for workers who have disputes or merely political campainging…). Not necessarily a bad thing, but maybe worth being clear about.

Incidentally, I doubt there would be much political capital in campaigning to get public-sector workers (I know there are unions in the private sector, but this is a much more fragmented arena for negotitation) wages tied to pensions, as it would probably alienate more than you attract, so this is hardly a surprising conclusion, if at least politically smart.

4. James from Durham

Sadly forcing children into poverty is not as risky as forcing pensioneres into poverty. The pensioners have votes and they tend to use them.

@1

I’m sorry your business isn’t very successful.

I hope you’re not implying that, as you didn’t get a pay rise, no one else should get one either, as that would be a horrible, mean-spirited attitude unworthy of a civilised human being.

6. Leon Wolfson

I’m far from convinced that the plan wasn’t always to freeze them anyway.

And fair? No, it’s about freezing again. People literally freezing through the winter with the heating off. The welfare net in this country was threadbare as it was…now it’s patently inadequate.

“Many union members are getting pay increases of less than three per cent.”

Yes they are… three per cent less than three per cent.

Fair? Is it fair to freeze pay rises for union members. No, it is not. Is it fair to slash benefits rises for people without work. No, it is not. One unfairness does not justify another. It’s about time we took back the word “fair” from the Right and insisted on fairness for everyone. Which would mean slashing bankers’ pay and forcing the financial gangsters to pay tax.

9. Dick the Prick

Trade Union members were offered a 10% wage reduction and the offer to suck my fat cock 3 years ago and yet they licked the cheese clean off Brown & Balls. I’m fine about pensioners been swept about in massive economic and political times that they had no way of knowing how it’d end up. But any twat under 50 who voted Labour only have themselves to blame and i’m all out of tears. Utter, utter horseshit.

10. Leon Wolfson

@9 – And anyone who voted Tory should be blamed for these pension cuts, yes. Politics is personal, and your name fits you very well, asshat.

11. ex-Labour voter

The government’s concern for fairness is very touching indeed.
Perhaps I could sum it up for them:

“We have kicked those in work in the teeth and so, as a matter of fairness, we need to do the same to those on benefits”


Reactions: Twitter, blogs
  1. Liberal Conspiracy

    Is it fair to freeze benefits as union members get low increases? http://t.co/1Nqxy3nr

  2. Janet Graham

    Is it fair to freeze benefits as union members get low increases? http://t.co/1Nqxy3nr

  3. Owen Blacker

    Good piece. RT @libcon Is it fair to freeze benefits as union members get low increases? http://t.co/oyrCdAqn

  4. Logic fail at Liberal Conspiracy

    [...] Sigh. [...]

  5. Alex Braithwaite

    Is it fair to freeze benefits as union members get low increases? | Liberal Conspiracy http://t.co/fmehzgqu via @libcon





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