Postcode divide in state pension entitlement set to grow to £67,000 by 2028

A woman in her late 40s from Corby can expect to receive £67,000 less state pension when she retires, compared to a women of the same age in East Dorset, due to a widening gap in life expectancies and a rising state pension, according to a new report published today (Friday) by the TUC.

The report looks at life expectancy projections by gender, occupation and geographical area, and their effect on the amount of state pension people are set to receive. The state pension age is due to rise to 66 between 2018 and 2020 and to 67 between 2026 and 2028.

The research shows that by 2028 a woman living in East Dorset – the area of the UK with the longest post-65 life expectancy for both men and women – can expect to live nine years longer than a woman in Corby (the area with the shortest life expectancy) when they retire. This state pension divide works out at £67,000 over their lifetime. The state pension divide for men living in East Dorset and Manchester (the area with the shortest male post-65 life expectancy) will be £53,000.

This state pension divide will also grow for different types of workers. A female managerial or professional worker retiring in 2028 can expect to live 3.8 years longer than a female manual worker, compared to 2.4 years today. This state pension divide works out at £29,000. The equivalent gap for male manual and professional workers is £23,000, or 3.1 years.

The TUC report also shows that millions of people will receive less state pension, despite having to work for a further two years, because their life expectancy is not keeping pace with the increasing state pension age. People living in poor areas such as Corby, Manchester, Salford and Hull will receive substantially less state pension over their lifetime. A woman in her late 40s in Corby will have to work for two more years before retiring but will receive £12,000 less state pension during her retirement than those retiring in 2016.  A man of a similar age living in Manchester will receive £7,500 less during his retirement.

The lifetime state pension for men, based on a full ‘single-tier’ state pension award, will fall from £147,000 in 2016 (when the single-tier is introduced) to £146,000 in 2028. Women retiring in 2028 will have to work longer in order to receive the same state pension (£164,000) as those retiring in 2016.

The government’s failure to consider persistent inequalities in life expectancy when accelerating the rise in the state pension age, will leave millions far worse off in retirement, says the TUC.

The TUC believes that the government should reverse its decision to raise the state pension age in light of new evidence on life expectancy projections, and instead set up an independent commission to examine inequalities in life expectancy and their effect on people’s retirement incomes.

Midlands TUC Regional Secretary, Rob Johnston, said: “These figures show that ordinary working people in the Midlands will lose out as a result of the Government’s pension changes. Health inequalities mean that people in areas such as Corby will have to work longer to get less. And what’s more, current trends suggest that inequality is set to increase meaning this divide will widen into a chasm.

Britain is already too divided between the haves and the have-nots. To secure a fair deal for the Midlands, and a fair deal for ordinary families then we need to put a commitment to narrowing inequalities firmly at the centre of the political debate”

TUC General Secretary Frances O’Grady said: “The government’s decision to accelerate the rise in the state pension age will mean millions of people having to work for longer in order to receive less in retirement.

“There is already a shocking divide in life expectancies across England, and if current trends continue that inequality will get worse in the coming decades. The government’s pension reforms will add to the problem, with people in richer areas receiving more from the state, while those in poorer areas receive less.

“It cannot be right that people living in a wealthy area can receive tens of thousands of pounds more in state pension than someone living in a less well off part of the country, particularly as richer people are likely to have earned more during the career and have a bigger private pension too.

“The government should abandon its plan to raise the state pension age in light of the new evidence on projected life expectancies. It should instead set up an independent commission to examine health inequalities and the impact on people’s expected retirement incomes.”

Vietnam construction trade unionists meet UCATT

Vietnam construction trade unionists, Bi and Quang, meeting UCATT to share ideas and experiences of organising. Midlands Regional Secretary, Rob Johnston, was delighted to meet with the delegation to talk about role of the TUC.

Midlands TUC describes IoD's HS2 positon as "the grandest folly of all"

Commenting on the Institute of Director's description of HS2 as a grand folly, Midlands TUC Regional Secretary, Rob Johnston commented:

"It was disheartening to see that the Institute of Directors yesterday dismissed HS2 as a 'grand folly.' However, I can understand why people may be seduced by the seemingly attractive decision to "save" £50bn by scrapping HS2. At a time when cuts dramatically impacting upon public services and the public facing the strongest squeeze on living standards, it is understandable that people can look at the £50bn project and identify an easy way to plaster over the cracks in other areas of public expenditure that are being squeezed. 　

"However, to raid the HS2 budget would be the grandest folly of all. It would be yet another example of short sightedness that has crippled the UK economy for far too long. HS2 represents medium term investment that secures long term, sustainable economic returns. And let us look at some of the projections: 400,000 jobs as a result of HS2, with 20,000 construction jobs for 15 years and a boost to economic performance that means the cost of HS2 would be recovered in just two years.

"The benefits to the Midlands regional economy are clear with the transformational benefits potentially profound. That is why supporters of HS2 must keep banging the drum and pointing out the benefits for our economy and the opportunities HS2 will bring for the people who live here.

"Despite the IoD’s comments, it was great to see that the Birmingham Chamber of Commerce have today come out so strongly in support. What is clear is that there is industrial support for HS2 here in the Midlands - and that speaks volumes. Business and union leaders here in the region know that we need HS2.

"Let us not be distracted. Let us secure jobs and growth and grasp this moment of opportunity, reject short termism and not squander this inheritance and commit, what would be, the truly grandest folly of all."

Extent on NMW non-compliance

The moves to further expose NMW abuses by employers are welcome and very much needed.

 

Of course, we must recognise that the vast majority of employers simply pay the correct NMW at the right time. This applies to about a million employees every year. Whilst it is difficult to be absolutely certain about the exact scope of non-compliance (since it cannot be captured by surveys and the perpetrators have a strong motive to conceal the truth) it is clear that non-compliance is still a major problem. Indeed, the TUC estimates that as many as 250,0000 workers could be paid less than the minimum wage per year. 
In terms of hard facts we know that for 2012/13 there were
- 1,693 complaints to the NMW helpline
- 708 employers received civil penalties. 
- HMRC were able to recover pay for 26,519 workers
- Workers were owed, on average, £300 each

Interns

HMRC hvae also started targeting internships and have made a good start, although we know the vast majority of interns fear complaining in the first place.

Arcadia and eight other firms were ordered to pay a total of 167 unpaid interns after investigation by HMRC.  The companies faced a bill for back-pay and penalties to HMRC of nearly £200,000.

Apprentices

Apprentices represent just 0.5% of the workforce, yet apprentices constitute 25% of NMW non-compliance notices. Evidently, there is a significant minority of employers that dodge the minimum wage for apprentices. Not only is this, forst and foremost appalling for the workers themselves, but also risks ruining the reputation of Apprenticeships at a time when we are campaigning for increased quality provision in apprenticeships.

 

TUC welcomes move to expose the minimum wage cheats

Welcoming the announcement today (Friday) by Employment Relations Minister Jo Swinson that employers who fail to pay the minimum wage are to be publicly named, Midlands TUC Regional Secretary, Rob Johnston, said:

“It is a crime for employers to pay staff below the NMW and it is right that these flagrant NMW crimes be exposed. 

 

For too long dodgy employers have felt that they can abuse workers and not pay NMW and get away with it. This is wrong and must be condemned and tackled with increased NMW enforcement.

But exposing NMW cheats should just be a first step in tackling poverty pay. For we need to encourage more employers to go beyond the statutory minimum and pay living wages in the Midlands. The Midlands economy has suffered heavily over the last decade and wages in the region are already low.

 

So let us expose the cheats and then move on to rebuild our regional economy in a way that secures decent wages for all.”

 

TUC General Secretary Frances O’Grady said:

 

“It is right to name and shame minimum wage rogues, so that other employers who think they can get away with paying illegal poverty wages get the message loud and clear that cheating does not pay.

 

“At the moment all employers who have been found guilty of cheating workers out of a legal wage have to pay a financial penalty, but as this takes place behind closed doors, justice is not seen to be done.

 

“But naming and shaming won’t be enough to deter those employers who think they are above the law. Only a handful of employers have been taken to court since the minimum wage was introduced in 1999, yet over the years thousands of workers have complained to the minimum wage helpline that they are being ripped off.

 

“Employers need to know that there will be no hiding place if they break the law. The government must put more money into enforcement so that there are fewer places for even the most determined minimum wage cheats to hide.

 

“We need to see more prosecutions and much higher fines imposed so that minimum wage crimes become a thing of the past.

 

“If we are to build a strong and sustainable recovery which benefits all working people, our vision must reach far beyond the minimum wage, which after all is just a floor on pay. Ministers should encourage all employers who can afford to pay a living wage to do so, and consider the introduction of new wages councils to press for decent pay rates across the economy.”

TUC Charter will help employers provide high quality traineeships for young people

A new Charter launched today (Thursday) by unionlearn – the learning and skills arm of the TUC – will provide assistance for young people, union reps, employers and training providers to ensure that the government’s new Traineeship programme offers young people the best possible introduction to the world of work.

The Traineeships programme – which will be launched nationwide this August – is targeted at 16-24 year olds who are unemployed and who need to gain additional skills to find an Apprenticeship or employment.

The TUC agrees with ministers that high-quality work experience is an important factor in helping young people into work. However, it is concerned that poor quality schemes could lead to exploitation, with trainees being used as free labour and possibly even displacing existing workers.

Young people can also become disillusioned with schemes if they are not given relevant high-quality training and work experience or any chance of a job at the end of a placement, warns the TUC.

The TUC has therefore launched its Traineeships Charter – designed for union reps, but also useful for employers, training providers and young people looking to start a traineeship – that sets out several key points to ensure that a Traineeship is high quality.

 The Charter says that young people should expect the following from a Traineeship:

•             Where work of value is done by a trainee, employers should pay them. This will also help prevent trainees displacing existing workers.

•             Placements should give young people the skills relevant to their aims and the needs of the local labour market to raise their chances of future employment.

•             Trainees should be offered careers guidance and advice on other work-related issues such as health and safety and employment rights.

•             Qualifications received on a traineeship should count towards an apprenticeship framework.

 

Midlands TUC Regional Secretary, Rob Johnston, said: “With nearly a million young people currently out of work, more needs to be done to help them get their careers back on track.

“Traineeships can provide a vital bridge between education and work or an Apprenticeship – but only if they are of sufficiently high quality.

“Bad schemes can exploit trainees and displace existing workers from paid employment without doing anything to help young people into work.

“For a work placement to be genuinely useful it should offer fair pay when work of value is done, proper careers guidance and a guaranteed job interview at the end.

“While the TUC Traineeships Charter is primarily designed for union reps to negotiate better schemes with employers, it should also be useful for training providers and young people wanting to know what to expect from a good quality work placement.”

 

Many private sector workers will be worse off under state pension reforms

The vast majority of people currently entitled to the state second pension will get less when they retire as a result of the scheme being replaced by the new single tier pension, TUC research published today (Wednesday) warns.

The state second pension was introduced in 2003 as a way to help low earners and carers get more from the state pension. Around 20 million people, the vast majority of whom are private sector workers, are currently contracted into the scheme. The second state pension will be abolished as part of the single tier pension, which comes into effect in 2017.

The TUC research models what the projected retirement incomes of people currently contracted into the second state pension will be under the new single tier pension – which has been set at £144 a week (in 2012/13 terms). The research includes various income bands, pension contribution levels and retirement dates.

The TUC report shows that anyone with a long work history will lose out under the single tier pension. While high earners lose most, people on low to middle incomes (£10,000 to £26,000) could also lose significant amounts.

Low earners now in their late 30s will get around £30 a week less than they would get under the current arrangements. Those set to benefit from the single tier pension, such as low earners and carers, will only be at an advantage when the reforms first take place. In time, their retirement incomes will fall too.

The report finds that a worker on a median income of £26,000 a year and with a full employment record will lose out as soon as the new single tier pension is introduced. A median earner retiring in 2030 will be £29 per week (£1,508 per year) worse off.

The losses will increase over time, warns the report, with a median earner retiring in the late 2040s set to be around £40 a week (£2,080 a year) worse off than they would be under the current state pension arrangements.

According to the report, a low-paid worker earning £10,000 a year can expect to be £5-10 a week better off if they retire soon after the changes take place. However, people earning the same income now and who will to retire in a few decades time are likely to lose out. Someone earning £10,000 now but retiring in the 2040s will be between £18 and £32 a week worse off.

For median earners with ten years of missing national insurance contributions – for example a woman who has taken a career break to have children – the potential income losses range from £3 to £27 per week, depending on when they retire.

With most workers expected to be auto-enrolled into a workplace pension by 2018, it is expected that private pension saving will plug the gap left by the scrapping of the second state pension.

However, the TUC research shows that in some cases even the combined total of the single tier pension and private pension saving will not be enough to match the level of pension received under the current system from the state pension alone.

A worker earning £10,000, with an eight per cent total contribution rate to their pension (the statutory earnings band under automatic enrolment) and retiring in 2030 will have a private pension income of £3 a week – not enough to offset the £7 a week loss that they will experience in their state pension income. The same worker retiring in 2040 will receive a private pension income of £7 a week – £11 a week less than what they would have received under the current state pension system.

The report warns that because it will take time for auto-enrolment to make a significant contribution to people’s pension saving, it won’t be until 2032 that private sector workers on median salaries get more from a combination of their private and state pension than they would have got under the current arrangements.

It cannot be right that so many low to middle income earners are going to have to pay in more yet still receive a lower state pension in return, says the TUC.

The TUC supports the single tier pension in principle but believes that the initial rate of £144 a week is far too low.

The scrapping of the state second pension and low contribution rates under auto-enrolment means that millions of people on a range of income levels will lose out under the government’s pension reforms, says the TUC.

Ministers must do more to limit these losses, otherwise the welcome progress it has made towards delivering a simpler, fairer state pension could be fatally undermined, says the TUC.

TUC General Secretary Frances O’Grady said: “The state second pension was designed to give low and middle income earners a much-needed top up to the basic state pension.

“Scrapping it as part of the new single tier pension will mean that many low and middle-income private sector workers, particularly those several decades away from retirement, could be thousands of pounds a year worse off in retirement.

“While the government is right to move towards a simple, single state pension,

setting it at just £144 a week is far too low and will mean many future pensioners will be worse off.

 “The government should raise the single tier pension rate, and look to raise minimum contribution rates into workplace pensions once auto-enrolment has had time to establish itself, so that fewer people lose out under the government’s pension reforms.”

 

Government plans for mutuals should not be ‘forced through’ against employees’ will

 

Government plans to outsource public service provision to independent employee-led mutuals should be subject to a ballot of employees and not be ‘forced through’ against their will, Co-operatives UK and the TUC warned today (Wednesday).

The two umbrella groups – representing co-operatives and unions – say that ministers should not ignore the views of workers in their drive to mutualise services.

To date, around 70 public service mutuals have been formed, controlling public expenditure of over £1 billion. Whilst there have been some examples of good staff engagement, the TUC and Co-operatives UK are concerned that not enough public sector mutuals offer employees a genuine voice in the formation or the running of the new business.

The civil service pension scheme manager MyCSP, for example, was formed as a private business without a ballot for staff on the transfer and operates without the genuine accountability that would make it a true mutual. Employees hold just 25 per cent of shares in a trust, with 35 per cent being held by the government and 40 per cent owned by private investor Equiniti, led by former employees of outsourcing firms Serco and Capita.

Several spin-outs of mutuals across the NHS have proceeded without full support from staff.

The TUC and Co-operatives UK have signed up to a historic joint set of best practice guidelines setting out the conditions that should be in place to ensure that public service mutuals are based on employee support and offer genuine employee ownership and representation.

The guidance calls for the government to establish quality standards in its programme of public service mutualisation and outlines a set of principles agreed between trade unions and representatives of the co-operative and mutual sector.

The guidance addresses concerns in five key areas where the two organisations have identified best practice for successful mutualisation:

 

•　　　　　　　　　　　　 workforce engagement and consultation in the process

•　　　　　　　　　　　　 governance and democracy in the mutual

•　　　　　　　　　　　　 commissioning of services

•　　　　　　　　　　　　 safeguarding of public assets

•　　　　　　　　　　　　 employment standards

TUC General Secretary Frances O’Grady said: "Increasing numbers of employees are leaving the public sector through the government’s mutualisation programme, often against their will.

"The mutuals that are being formed often don’t meet the democratic and open criteria of genuine co-operatives. In fact, many are simply privatised services under the cover of mutuals.

"These new entities will give controlling stakes to investors rather than workers and allow important public institutions to be taken over by large for-profit providers.

"We hope that this guidance ensures that where public service mutuals are created, they are done so with explicit employee support and genuine ownership and representation in any new organisation."

Secretary General of Co-operatives UK Ed Mayo said: "I am a strong supporter of the mutual option for public services as a way to empower staff and engage service users. But it needs to be done well. You can’t be genuinely employee owned if, in terms of culture and governance, there is no sense of employee ownership.

"There are international principles which safeguard the co-operative model, as a form of mutual. This guidance draws on these principles , and pioneering work with co-operative schools, to set out how to protect and promote the interests of employees and others who have a direct stake in the quality of our public services."

Sharp rise in bonuses shows Britain is booming for the super-rich

Commenting on the latest figures for bonuses during 2012/13, published today (Tuesday) by the Office for National Statistics (ONS)

Midlands TUC Regional Secretary, Rob Johnston, said:

 

"After the crash of 2008 we were told that the bonus culture for the super rich would come to an end. Unfortuantely, its back to the future. Whilst ordinary people here in the Midlands suffer from the most severe squeeze on wages and massive job insecurity the super-wealth carry on as if nothing has occured.

 

And this will do nothing for the health of our regional economy. The Midlands economy needs investiment in manufacturing and a strong determination to tackle our chronic youth unemployment problem. Back to business as usual for the super rich elite will do nothing to help our communities here in the Midlands.

 

The Midlands needs a future that works for all our people, not a bonus free for all for the rich elite"

 

TUC General Secretary Frances O’Grady said:

 

“The return of big bonuses shows Britain is booming for the super-rich. While ordinary people suffer the longest wage squeeze in over a century, those at the top have seen bonuses rise by a stonking four per cent.

 

“Not content with giving the super-rich a tax cut, the Chancellor has also showered them with an extra gift worth tens of millions of pounds, courtesy of the taxpayer, by giving them plenty of notice to defer their bonuses and avoid the 50p tax rate.

 

“The shape of Britain's recovery looks increasingly like one where the same old elites hog the gains, while ordinary workers are expected to take declining living standards on the chin.”

 

- The ONS figures are available at www.ons.gov.uk/ons/rel/awe/average-weekly-earnings/index.html

Lobbying Bill is an “outrageous attack on freedom of speech worthy of an authoritarian dictatorship”, says TUC

The TUC is today (Monday) seeking an urgent meeting with Cabinet Office Minister Chloe Smith to protest at “an outrageous attack on freedom of speech worthy of an authoritarian dictatorship” contained in clauses in the Transparency of Lobbying, non-Party Campaigning, and Trade Union Administration Bill.

The TUC is concerned that the Bill will make organising its 2014 annual Congress, or organising a TUC national demonstration in the 12 months before the 2015 General Election, criminal offences.

The provisions to regulate lobbying have also come under fire from the Chair of the Political and Constitutional Reform Committee chair Graham Allen MP today.

The Bill makes three changes to the regulation of campaigning by non-party organisation in the 12 months before a general election. Breaching these will become a criminal offence. The three changes are:

 •             Changing the definition of what counts as campaigning. At present only activities designed with the intent of influencing an election result are regulated. The Bill will instead will regulate activity that may affect the result of an election. As any criticism of government policy could affect how people vote, this will severely limit any organisation’s ability to criticise government policies in the run up to an election – not just unions, but charities, NGOs and local campaign groups too.

•             Reducing the spending limit for third party campaigners to £390,000. The amount that third party campaign groups can spend in the year before an election is reduced by more than half to £390,000.

•             Including staff time and office costs in expenditure limits. Presently only the costs of election directed materials and activities such as leaflets and advertisements are regulated. The Bill proposes that staff time and other costs should now be included in the limit.

As the costs of all organisations involved in an event are added together and this total counts against the limit for each group involved, the TUC’s 2014 Congress, or a national demonstration, would not just take the TUC over the annual limit but each member union. While the TUC’s Congress will be regulated, political party conferences are given an exemption in election spending limits.

 TUC General Secretary Frances O’Grady said: “It’s an open secret at Westminster that this rushed Bill has nothing to do with cleaning up lobbying or getting big money out of politics. Instead it is a crude and politically partisan attack on trade unions, particularly those who affiliate to the Labour Party. 

“But it has been drawn so widely that its chilling effect will be to shut down dissent for the year before an election.  No organisation that criticises a government policy will be able to overdraw their limited ration of dissent without fearing a visit from the police.

 “Of course not everyone agrees with TUC views and policies, but I expect there to be wide revulsion at this attack on free speech worthy of an authoritarian dictatorship. This will not just gag unions, but any group or organisation that disagrees with government – or opposition – policies.”

The Bill was published as Parliament broke up for the summer, and is to be debated as soon as MPs return with a second reading on 3 September. The Committee stage will take place on the floor of the House the week after – the same time as the TUC’s 2013 Congress.

The government has broken pledges that the lobbying bill would be published in draft form and subject to pre-legislative scrutiny by a Select Committee.  Even though the restrictions on third party campaigning make the Bill a constitutional measure, there has been no consultation process or cross-party talks.

 

 

More Action For Rail pics from Bham International

Music industry latest sector to speak out against casualisation

 

Coming hot on the heels of the revelation that over a million workers are employed on zero-hours contracts, the music industry is the latest sector to reveal the shocking increasing casualisation of the workforce.

The Government has slashed funding to the arts by 30% resulting in music and arts organisations closing, shedding workers, cutting pay, or moving staff onto casual contracts. However, the most recent issue causing concern for musicians revolves around the Government’s flagship Music Education Hubs policy.

The Musicians' Union is reporting that some Local Authorities have imposed further cuts on their music services alongside central government cuts, which has resulted in an erosion of pay as well as terms and conditions for their members who teach. They see a move to casual contracts which offer no set hours or job security, usually as a pre-cursor to outsourcing. There have also been reports that some services are imposing restraint covenants in contracts preventing music teachers from teaching in schools, even after they have left the service, a situation that may well backfire on employers in the event of a legal challenge by an employee.

In the Midlands, the MU has 3000 members, and approximately two thirds work in music education as part of their career portfolio, so this is a serious issue for many MU members. Not least, because most MU members earn less than £20,000 per year placing them firmly in the bracket of the low paid worker, so any pay cut or increased job insecurity could be damaging to them, the students they teach, and the wider economy – an economy that sees £4 generated for every £1 spent on the arts* demonstrating that cutting this sector is not good economics.

Stephen Brown, Musicians Union Midlands Regional Organiser, commented:

"Music teachers are dedicated professionals who have studied for many years to get to the standard they are at. This is not the glamorous or high reward end of the music business but nevertheless it plays a vital role in the education, cultural, societal well-being, and economic heartbeat of our nation. Our young people’s music education continues to be the envy of the world and for good reason, so the MU wants to keep it that way. Any moves to jeopardise this position comes at a risk. The MU is leading the way in championing music services and fighting to maintain them for the benefit of our members, young people and wider society".

　

 

Rob Johnston, Midlands TUC Regional Secretary commented:

" Musicians are being taken for granted, not rewarded for the work that they do and are yet another victim of this Government’s assault on working conditions and the squeeze on living standards and job security. The music and culture industry is both an important sector of the UK economy and also a vital component of our society. Musicians deserve better than continual job insecurity and undermining.

Unfortunately, the music industry is not alone. Over 300,000 care workers are employed on zero hour contracts.　 And these casual contracts have spread throughout the retail sector, throughout higher and further education, across legal services and in journalism.

But zero hours contracts are just one part of the problem. The construction sector is plagued by bogus self-employment, enabling unscrupulous employers to circumnavigate employment rights. And agency and temporary work is increasingly prominent leaving countless workers ‘underemployed’ and out of pocket.

The economic crash has was caused by financiers and the uber-wealthy. Yet the political Right have been brazen in using the economic failure as an opportunity to pursue an assault on workers conditions. Musicians, care workers, builders and shop assistants did not cause the crash. We must reject this Victorian casualisation of the world of work and instead seek a new economy based on quality jobs, job security and fair wages for all."

Action For Rail at Bham International Station

 



 

Action For Rail in Derby

Action For Rail unions campaigning today against 40% fare rises since 2008 outside Derby Station - including TSSA, RMT Unite & RMT plus the Derby Climate Coalition

Ant Barrable from TSSA comments: "Thanks to all who turned out for the "Action for Rail" awareness at Derby station this morning. Some very positive feedback from the travelling public regarding the issues at steak! Public accountability of the peoples railways can't come soon enough if we are to avoid further damaging erosion of a once great public service."

TUC's anger at rail fare rises

 
(Via ITV Central)

Protesters at Nottingham Station have said that communities are being "hit hard in the pocket".

Members of the TUC are protesting at 47 stations around the country today and the Regional Secretary of the Midlands TUC, Rob Johnston, says "it doesn't need to be this way."
 
http://www.itv.com/news/central/story/2013-08-12/campaign-against-rail-fare-rises/
 

Action For Rail campaigning against 40% fare rise

 

Campaigners across the midlands joined together for the latest Action For Rail day to protest against yet another wage busting fare rise.

 

Campaigners from Aslef, RMT, TSSA and Unite handed out thousands of leaflets at Birmingham International, Bham New Street, Derby and Nottingham station. In an attempt to spin the media, the Secretary of State for Transport, Patrick Mcloughlin MP, turned up at Nottingham station to talk up Government investment in the station. However, Action For Rail campaigners at Nottingham lobbied Patrick on rail fares, privatisation and the ill conceived decision to put East Coast Mainline back into private hands. Also, Rob Johnston, Midlands TUC Regional Secretary, took part in TV interviews with the BBC and ITN at Nottingham to ensure that the issue of rail fares and the corporate rip off were covered by the media in response.

 

The sad reality is that next year’s wage-busting rail fare increases – the sixth time in seven years that fare rises have outstripped wages – will mean that rail fares will have increased by 40 per cent since between January 2008 and January 2014. Over the same period, average earnings have increased by just 15 per cent, with rail fares rising nearly three times faster than wages.

An additional five per cent flexibility means that some season tickets could actually increase by around nine per cent in the new year, while unregulated fares could increase further. Average earnings are forecast to rise by just 2.4 per cent next year.

The TUC has set up a rail fare rise projector – available at www.tuc.org.uk/railfareprojector – to show how regulated fares have increased since 2008.

Passengers are being short-changed by wage-busting rail fare rises. Passenger Focus surveys show that less than half of rail passengers think that the service provides value for money.

While train company revenues continue to increase, little of this benefits of passengers. Recent research commissioned by the TUC shows that investment by train operating companies in trains and stations is minimal, with the average age of rolling stock increasing since rail privatisation.

 

Rail privatisation is costing taxpayers £1.2bn a year as a result of fragmented services, higher costs of borrowing and money leaking out of the service in the form of profits and dividends, according to research by Transport for Quality of Life. Their analysis also showed that eliminating this £1.2bn-a-year wastage could result in an 18 per cent cut in rail fares across the board.

 

TUC General Secretary Frances O’Grady said: "Every year hard-pressed rail commuters have to hand over an ever greater share of their earnings just to get to and from work.

"Wage-busting fare rises are not even going on much needed service improvements either. Instead, passenger and public subsidies are lining the pockets of the shareholders of private rail companies.

 

"You only have to look at the nationalised East Coast mainline to see that public ownership of the railways not only works, it provides a better deal for passengers and taxpayers alike.

 

"Ministers must put evidence before ideology, halt the privatisation of the East Coast mainline and look at bringing our railways back into public ownership."