Public Sector Pay 2024-25

Debate between Beth Winter and Hywel Williams

Wednesday 17th January 2024 Westminster Hall

[Beth Winter]

I do not think the situation is different in Wales compared with Scotland. Both devolved nations have been starved of funds from the UK Government over the past 14 years. The Barnett formula does not work and we are owed in excess of £1 billion in Wales—I am sure it is far more in Scotland. I therefore beg to differ.

[Hywel Williams (Arfon) (PC)]

Just to answer that particular point, we are still waiting in Wales for the consequentials from the English settlements with junior doctors. Until we know how much money we are getting, it is difficult for us to decide on the rates of pay that we will award.

[Beth Winter]

I fully agree. I will conclude because I am conscious that lots of people want to speak today.

My final point regards pay restoration. The TUC’s position is clear. As agreed by its affiliated unions, it wishes to see a commitment to funding pay increases for public sector workers that at least match inflation. More than that, it wishes to see above inflation pay rises that provide for pay restoration, and the Welsh Government have committed to that if they have the funds to do so.

Universal Basic Income

Debate between Beth Winter and Hywel Williams

Wednesday 15th June 2022 Westminster Hall

[Beth Winter (Cynon Valley) (Lab)]

Thank you, Ms McVey. The actions of this Government are really hammering working people and the working class, and are driving more and more people into poverty. People’s incomes and living standards are under attack on many fronts, as we face the worst cost of living crisis in living memory.

The Government have imposed cut after cut to social security benefits, and increased benefits by only a paltry 3.1% in April, though inflation stands at 10%. We have seen freeze after freeze of public sector pay. We clapped for our key workers—be they care workers, Government workers or NHS workers—throughout lockdown, but they have not been rewarded. There is a debate in the main Chamber about the National Union of Rail, Maritime and Transport Workers, who have been forced to strike next week because their reasonable demands for better pay and terms and conditions have fallen on deaf ears. On pensions, the Tory Government have broken the triple lock.

All that has had a devastating impact on far too many people. Some 14.5 million people live in poverty. That includes the 4.3 million children who live in relative poverty—nine in every classroom of 30 children—and the 10 million people who use food banks. We should be angry that we, the fifth richest nation on the planet, have allowed this situation to arise and become normalised. That is a political choice.

There are alternatives, however, and universal basic income is one of them. We must do everything we can to achieve a fairer and more resilient society as we come out of the pandemic. A vital part of that is replacing our dysfunctional benefits system with one that provides financial security for everyone. UBI—an unconditional and regular cash payment to everybody, regardless of their income—is gaining significant traction as a solution to many of those issues. It is underpinned by the principle of universality, which I endorse. It would provide everyone with enough to cover the basic cost of living, and would ensure that financial security was a basic human right.

Universal basic income has lots of merits. It enables us to ensure that people’s human right to an appropriate amount of money to live on is met; it overcomes the negative features of means testing, particularly the stigma associated with claiming social security benefits; it is simple, unlike the current complex welfare system; and it would stimulate demand in the economy by putting money in people’s pockets.

I am particularly proud of the universal basic income campaign in my country of Wales. That grassroots, bottom-up campaign, led by a gentleman called Jonathan Williams of UBI Lab Wales, has been successful in getting constituency Labour parties, local authorities and Assembly Members to sign pledges in support of universal basic income, and it has also participated in various groups here in Parliament.

[Hywel Williams (Arfon) (PC)]

I apologise for my late arrival to the debate; I was detained elsewhere. Does the hon. Lady welcome, as I do, the small-scale pilot scheme that is being run by the Welsh Government? It will target money at 250 care leavers, who are a particularly vulnerable group. I look forward to the results of that pilot. However, it will take three years, and I am sure that she will agree that we need something larger scale, very quickly.

[Beth Winter]

I do agree, and thank the hon. Member for that intervention. I will come on to the universal basic income pilot scheme that the Welsh Government are introducing in the next few weeks. Mark Drakeford, the First Minister of Wales, is a strong proponent of universal basic income, and it is part of the radical and more progressive policies, particularly when compared to those of the UK Government, being pursued by the Welsh Government. It forms part of a co-operation agreement between the Labour party and Plaid Cymru that I fully support. The pilot is as ambitious as can be expected, given the financial constraints placed on the Welsh Government by the UK Government; the financial settlement is decided by the Barnett formula. From what I understand, attempts by the Welsh Government to discuss potential assistance from the UK Government fell on deaf ears.

I welcome the pilot, which gives care leavers £1,600 per month. That amount is significantly higher than the amount in any other basic income pilot globally. It is broadly equivalent to the real living wage. There is a comprehensive methodology associated with that, and there will be a very robust evaluation process. Michael Marmot is one of the advisers, as is Guy Standing, who is world-renowned on UBI. The pilot has a technical advisory panel. It is a very well thought-out process that goes as far as it can. Even I would admit that it has some limitations, but it is trying to look at progressive, radical and alternative ways of supporting people.

Any pilot or roll out of UBI must form part of a much broader transformative agenda. We need a benefits system that ensures that everyone has equal access to a safety net that will ensure that they can meet their needs, and we need a progressive tax system. I propose the reinstatement of the £20 universal credit uplift, and that benefits and wages be inflation-proofed. I am a proponent of the wealth tax. UBI must form part of a more transformative agenda. I will continue to work alongside colleagues in Parliament, but crucially, I will work outside the bubble of Parliament with organisations such as Anti-Poverty Alliance in Wales, Child Poverty Action Group and trade unions—in particular, Unite Wales community—to promote radial, alternative and socialist policies. I want to celebrate and congratulate the Welsh Government on the ambitious pilot. Diolch yn fawr.