Dear colleagues
St Mungo’s new Chief Executive, Emma Haddad, has acknowledged how important it is for people’s incomes to keep pace with inflation:
St Mungo’s acknowledges the importance of income keeping pace with inflation
The press release linked above refers to the Government’s decision to increase all state benefits by 10.1% from April 2022, so that benefits claimants are not impoverished by rising prices. Ms Haddad says:
“We welcome the measures announced today aimed at supporting the most vulnerable members of society. Increasing benefits in line with inflation and raising the benefit cap were both recommendations made by the Kerslake Commission on Homelessness and Rough Sleeping, and will help many of our clients weather the current financial storm.”
St Mungo’s Unite is 100% in agreement with Emma on this point. It is vital for benefits to keep up with inflation so that claimants do not see the value of their income reduced by economic failings entirely outside their control.
But what about workers, who are also suffering real terms pay cuts because of inflationary pressures they did nothing to create? What about St Mungo’s own staff?
Ms Haddad continues: “we do have concerns that people who are currently employed in low-wage jobs may be put at greater risk as many of the support packages announced will not be accessible to them. And there is no additional help for those facing rising rents.”
Does Ms Haddad know that she is describing her own employees? Does she know that our rents are increasing, and that those with mortgages face rising interest rates, while our wages are not keeping pace?
When wages are increased in line with inflation, it just means that you are able to buy the same things as you could before. In real terms, it’s not an increase, it’s just keeping up. And when wage rises are below inflation, you can buy less than before. In real terms, that’s a pay cut.
St Mungo’s should follow the lead set by the Government’s autumn statement. It should sit down with union representatives and offer a pay increase that ensures that wages keep up with inflation.
It’s not enough for St Mungo’s to tell the Government to do the right thing. Placing yourself to the right of a right-wing Government is not a good look for a homelessness charity. The Executive Team need to live up to their own expectations and act fairly towards their own staff. That means paying wages that at least keep up with inflation.
Best wishes,
Jacob
Jacob Sanders
St Mungo’s Unite Convenor
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