Usdaw urges Chancellor to tackle cost of living crisis

Retail trade union Usdaw has called on Chancellor Rishi Sunak to take immediate actions to tackle the cost of living crisis.

In a letter written shop workers’ trade union leader Paddy Lillis has asked Sunak to increase all social security payments by at least the rate of inflation, along with an urgent and fundamental overhaul of Universal Credit to provide social security that properly supports claimants.

Usdaw is also calling on to reduce the headline rate of VAT to 17.5 percent. 

“There is a clear need for Government intervention to support people claiming in-work welfare payments and we call for, as a matter of urgency, an increase to all social security payments by at least the level of inflation. This should be followed by an urgent and fundamental overhaul of Universal Credit to ensure it provides a social security benefit that supports claimants,” says Lillis – Usdaw General Secretary.

“However, the cost of living crisis is clearly affecting all low paid workers, not just those in receipt of in-work welfare payments. Too many are struggling to pay their energy bills and it is clear that the Government can take action to tackle this through a windfall tax on North Sea oil and gas producers.

“Also, to ensure that any action delivers the greatest benefit for those most in need, Usdaw is calling for the Government to reduce VAT to 17.5%. VAT is generally accepted to be a regressive tax, so a reduction in the rate is needed to look after the interests of low income households.”

Lillis further added that the government has “so far not done what workers need” in the face of the cost of living crisis.

Usdaw is also calling on the government to introduce an Employment Bill to ensure that work pays through tackling the endemic low pay and insecure work problem. This should include a New Deal for Workers based on:

• A minimum wage of at least £10 per hour for all workers immediately, ending rip-off youth rates.
• Minimum 16 hour contracts, for everyone who wants one, based on an individual’s normal hours of work and a ban on zero hours contracts.
• Statutory Sick Pay for all workers from day one of absence and based on their normal rate of pay