[IER] In-work poverty rising at faster rate than employment

[Sarah Glenister]

IER News Brief 07/12/18Follow us on Twitter  
news brief
Friday 07th December 2018
This week, figures revealing that in-work poverty is rising at a faster rate than employment has made stark the government's failure to "make work pay" despite its boasts of record-high employment.

Research from the Joseph Rowntree Foundation found that around one in eight workers - four million people - have fallen into poverty despite having a job. It blamed excessive housing costs, benefit reforms, and weak employment law for what it described as the "relentless" and "unacceptable" rise of in-work poverty.

The charity called upon the government and employers to improve pay and conditions for workers across the country, including by offering the Real Living Wage (which covers the cost of living) to those currently struggling to get by on the statutory minimum.

It also urged employers to provide better training for their workers after finding that many of those trapped in poverty have been unable to upskill in order to find higher paid work.

Chief Executive of the Joseph Rowntree Foundation, Campbell Robb, said the UK should seize upon the opportunity for widespread reform when it leaves the EU. "It's time for us to decide what kind of country we want to be," he said.

His words echo those of the legal experts and academics who authored the Institute of Employment Rights' latest report: Rolling out the Manifesto for Labour Law. 

Among the 25 recommendations put forth in the Manifesto are the introduction of the Real Living Wage in place of the minimum wage, which should be built upon by negotiation between unions and employers' associations through the reinstatement of sectoral collective bargaining across the economy.

Sectoral collective agreements - which would apply to all workers in an industry, regardless of their employer - would also be used to agree minimum conditions for workers, including training and apprenticeships, and to improve the productivity and future resilience of British industry by preparing workers to fill burgeoning skill gaps.

Read more about our recommendations for reform in the Manifesto for Labour Law 

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