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TUC – 3 in 10 key worker households in the North West have children living in poverty

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3 in 10 (29%) key worker households in the North West have children living in poverty, new TUC research has revealed today (Friday). The research, which uses the government definition for key workers, shows that the number of North West kids growing up in poverty in key worker households has increased by 23,000 over the past two years from 151,000 to 174,000 – a rise of 15%.

The North West has the second highest rate of child poverty in key worker households in the UK. Only the North East has a higher share of children living in poverty in key worker families.

Worse set to come

The TUC warned child poverty rates among key worker households are likely to get worse.

Ministers have announced another of year of real-terms pay cuts for key workers in the public sector.

The union body says this will have a devastating impact on frontline workers after a brutal decade of pay freezes and cuts:

  • Hospital porters’ real pay will be down by £200 this year
  • Maternity care assistants’ real pay will be down by £600 this year
  • Nurses’ real pay will be down by £1,100 this year
  • Paramedics’ real pay will be down by over £1,500 this year

And ministers are calling for wages to be held down for key workers in the private sector too.

The TUC says the additional support announced by the Treasury this year to help families with energy bills will be offset by cuts to real-terms pay and other rising living costs.

Risk of recession

The TUC says government calls for widespread pay suppression will reduce household spending and demand as the UK teeters on the brink of recession.

The union body highlighted how at the same time key workers are being told to tighten their belts, city bonuses are rocketing.

TUC analysis published in June month revealed that bonuses in the financial and insurance sector grew by 27.9% over the last year, six times faster than average wages in the same period, which grew by 4.2%.

TUC Regional Secretary James Mckenna said:

“Our amazing key workers got us through the pandemic. The very least they deserve is to be able to provide for their families.

“But the government is locking too many key worker households into poverty.

“Ministers’ heartless decision to hold down pay will cause widespread hardship in the region.

“After the longest wage squeeze in 200 years we urgently need to get more money in the pockets of working families.

“This will help people get through this cost of living crisis and inject much-needed demand into our economy.”

Support needed for key worker families

The TUC is calling on the government to guarantee decent living standards by:

  • Raising the national minimum wage immediately.
  • Giving all key workers a fair pay rise that meets the cost of living
  • Funding the public sector so that all outsourced workers are paid at least the real Living Wage and get parity with directly employed staff.
  • Boosting universal credit to 80% of the real Living Wage
  • Significantly increasing benefit payments to children and removing the two-child limit within social security.
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