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TUC head calls for “new deal” for workers in the East Midlands
Labour’s election is the chance for a “fresh start”, says TUC chief
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Paul Nowak says families in East Midlands have been desperate for a government that will “make work pay” – as he visits Rolls Royce factory in Derby today
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Union body leader calls for “more good employers like Rolls Royce”
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***PAUL NOWAK AVAILABLE FOR INTERVIEW***
The General Secretary of the TUC Paul Nowak has today (Wednesday) set out why workers in the East Midlands desperately need a “new deal”.
Speaking ahead of visiting the Rolls Royce factory in Derby this morning, the TUC leader said that Labour’s election can provide a much-needed “fresh start” for working people in the region after “14 years of economic decline”.
Nowak’s comments come after recent TUC analysis showed that child poverty in working households in the East Midlands has increased by nearly three-fifths (58%) since 2010. More than 1 in 4 (24.6%) kids in working households in the East Midlands are now growing up in poverty.
Urgent reset
The TUC says Britain has been in urgent need of an economic reset. Analysis from the union body shows that pay packets are still worth less than in 2008 in nearly two-thirds (65%) of East Midlands local authorities
The analysis of official statistics shows that 16 years on from the financial crash wages are lower – in real terms – in 22 of the region’s 34 local authorities (for which data is available).
Across the region as whole average weekly pay is still £24 a week lower – in real terms – than in 2008 after more than a decade of stagnation.
And in every East Midlands local authority real wages are far below where they would be if they had grown at the pre-2008 growth rate.
The union body estimates that if wage growth had been sustained at previous rates the average East Midlands worker would be £200 a week better off.
Workers’ rights boost
The TUC says Labour’s New Deal for Working People can play a pivotal role in improving jobs and making work pay.
The new government’s plan to make work pay includes commitments to:
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Ban zero hours contracts
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End fire and rehire
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Strengthen sick pay
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Give workers employment rights from day one of the job
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Give workers stronger rights to flexible working
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End lower minimum wage rates for young people so they get the full rate
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Introduce ethnicity and disability pay gap reporting
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Grant workers new rights to unionise and win better pay
Paul Nowak will be available for interviews today (Wednesday). To arrange an interview slot and for other bids please contact rjohnston@tuc.org.uk or call 07879 497 291.
TUC General Secretary Paul Nowak said:
“After 14 years of economic decline under the Tories, working people in the East Midlands have been in desperate need of a new deal.
“Living standards have fallen and in-work poverty has soared under the Conservatives’ watch.
“Labour’s election victory is the chance to the turn the page and usher in a fresh start for families in the region.
“The new government’s plan to boost workers’ rights – and make work pay – can be a game changer for this region.
“Everyone deserves a secure job that gives them enough to live on.
“This is a historic opportunity to set the East Midlands on course for a better future. We must grab it.”
On Labour’s industrial strategy, Nowak added:
“The UK has been crying out for a proper industrial strategy for years.
“Labour’s new National Wealth Fund shows our new government is serious about investing in our industrial base and the towns it supports.
“Trade unions are eager to work with the government – and employers – to ensure that new investment delivers the 650,000 quality jobs, stronger growth and climate action that working people need.
“This step change in approach from the new administration is welcome.”
Editors note
Notes to editors:
Methodology – the figures in the release are for the government’s relative low-income measure of child poverty, with a household income threshold set at 60% of median income after housing costs.
The analysis uses the UK Family Resources Survey (FRS) to estimate child poverty. This is the same source as the UK Government uses in its official Households Below Average Income (HBAI) poverty statistics.
A single year of FRS is not a large enough sample to produce reliable statistics for child poverty at sub-UK level. Therefore this analysis combines 3 years of FRS for each of the figures presented.
The older set of figures (from around the start of the period of Conservative-led government) are from a combined dataset of 2009/20, 2010/11 and 2011/12, while the newer set of figures use the data from 2019/20, 2021/22 and 2022/23. (We do not use the data for 2020/21 because data collection for that year was adversely impacted by the Covid-19 pandemic).
The number of children in poverty in working families is grossed up to a regional level using the grossing factors in the FRS dataset. Then the grossed-up number of children is divided by 3 in each case to convert from a combined 3-year estimate to a one-year estimate of child poverty levels.
The figures published here show the percentage increase in the number of children in poverty between 2009/10-2011/12 and 2019/20-2022/23.
*Areas where real wages are still lower than in 2008
Data was not available for Lincolnshire, Leicestershire, Derbyshire and Nottinghamshire
TUC analysis - the TUC analysis is based on local authority pay data from the Annual Survey of Hours and Earnings (ASHE) for the period between 1997 and 2023. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/placeofresidencebylocalauthorityashetable8
For 2024 pay data, the OBR forecasts for real wage growth from the March 2024 economic and fiscal outlook have been applied to the 2023 pay figures: https://obr.uk/efo/economic-and-fiscal-outlook-march-2024/
Real wage change in each nation, region, and local authority was calculated by finding the difference between median real gross weekly pay in each area between 2008 and 2024.
2008 wages were adjusted to take inflation into account (CPI, 2024=100). The latest OBR forecasts are used for 2024 inflation. Percentage change was calculated to show change from the 2008 figure.
The full results also compare the 2024 real wage values with the level wages would have reached if real pay growth since 2008 had matched the average rate in the years prior to the financial crisis (the period 1997, when this pay data begins, to 2008). The average annual real pay growth between 1997 and 2008 was 1.7%.
A small number of local authorities are excluded from the analysis because of either boundary changes or because the full data needed is not available. They are: Cumberland UA, Westmorland and Furness UA, North Northamptonshire UA, West Northamptonshire UA, East Suffolk, West Suffolk, City of London, Isles of Scilly, Orkney Islands, and Shetland Islands.
- About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.5 million working people who make up our 48 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.
