Most retail workers feel ‘worse off’ due to rising costs, says Usdaw

Most low-paid retail workers feel financially “worse off” as compared to last year, stated a leading retail worker union on Tuesday (15) citing its recent survey. The union is calling on the government to scrap the 10 percent National Insurance increase and raise minimum wage to at least £10.

According to Union of Shop, Distributive and Allied Workers (Usdaw), around 77 percent of low-paid workers feel financially “worse off” compared to last year while 75 percent of respondents struggled to pay gas and electricity bills.

As per the survey based on almost 6,500 members conducted at the beginning of February, two-thirds are relying on borrowing to pay everyday bills, with half of them now struggling with repayments.

Almost three-quarters report that financial issues are affecting their mental health, Usdaw said. 

 “Combination of soaring costs on energy and food are only going to make the poor struggle to make ends meet. Throw in the national insurance hike and petrol/diesel prices remaining high, what little wage rises we will get will make us all so much worse off. People who were classed as ‘keyworkers’ will, as usual, suffer the most,” Usdaw cited a retail worker from north west parts of the country.

Usdaw is calling on the government to help workers through the cost of living crisis by:

• Scrapping the 10 percent National Insurance increase due in April.
• Increasing financial support for those facing fuel poverty, funded by a windfall tax on highly profitable energy companies.
• Developing a proper social security system, Universal Credit does not provide a safety net.
• Immediately increase the minimum wage to at least £10 and scrap unfair youth rates. 

Paddy Lillis – Usdaw General Secretary says, “Too many low-paid key workers, who kept the country going during the pandemic, are coming out of the crisis feeling much worse off. The government’s promise to ‘build back better’ rings hollow now, with prices increasing and wages not keeping pace with inflation. 

“The government must provide substantial support for these working households, who are already struggling to make ends meet. Surely ministers cannot fail to be moved by the evidence from our survey showing that 77 percent are worse off than last year, two-thirds are forced to borrow to pay bills and half of them are struggling with repayments.

 “This cost of living crisis is also a mental health crisis. Our members have worked throughout the pandemic and they were applauded as key workers, but claps do not pay the bills. With prices rocketing and wages barely growing, it is inevitable that stress, anxiety and mental health concerns are increasing. Our survey shows that low-paid working people desperately need substantial Government action to help them through the cost of living crisis.”