Income Equality and Sustainability

Baroness Tyler of Enfield Excerpts

Wednesday 6th May 2020 Lords Chamber

[Baroness Tyler of Enfield (LD)]

My Lords, in the short time available, it is simply not possible to go into any detail about the measurement of income inequality, which is a complex and contested area. Suffice it to say that, according to the OECD, the UK has one of the highest levels of income inequality in Europe, albeit lower than in the USA.

Of particular relevance to today’s debate, the Resolution Foundation has pointed out that while everyone is feeling the effects of Covid-19, the impact is not equally distributed. Indeed, workers in shut-down sectors such as hospitality and non-food retail are among the lowest paid in the workforce, earning less than half than those able to work from home. There are strong links too with wider social inequalities. Private renters, who already face a great deal of insecurity, are also 40% more likely to work in shut-down sectors than their homeowning counterparts. Key workers, particularly those in health and social care, are more likely to be parents. Indeed, almost 40% of working mothers were key workers before Covid-19 and are much more exposed to health risks. Most starkly, earners in the bottom half of the earnings distribution are twice as likely to be key workers and 2.4 times as likely to work in those shut-down sectors. These are our fellow citizens, who are bearing the economic brunt of the crisis.

From a well-being perspective, those who are most likely to be back at work in a reopened economy—those who may not have the option to work from home—are also those more likely to be on a lower income, at risk and in need of assistance; for example, with childcare. I join others in calling on the Government to start framing policy responses to Covid-19 through the lens of well-being, which can help expose the complex multifaceted problems that it presents and the policy trade-offs that will be needed. Inequalities, be they in income distribution, health or well-being more broadly, are erosive of trust and social cohesion—things that we need now more than ever. Policies such as improving job security as well as proposals for a universal basic income must surely come to the fore.