There's only one way to get more money into our pockets!

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Workers' Fight workplace bulletin editorials
18 December 2024

Chancellor Rachel Reeves says she recognises that the cost of living crisis "continues to bite". But she promises that she is "fighting to put more money in the pockets of working people". Although it's not exactly clear just who or what she is "fighting"!

    In fact putting more money in our pockets was PM Starmer's first "milestone" in his 5 December "Plan for Change" speech. And just because he chose to deliver it at Pinewood Studios shouldn't cause anyone to think that this was just an act.

    Mr Starmer sounded very serious: "mark my words", he said, "with this Plan for Change, we will stick to it..."

    Actually, despite Starmer's attempt to put on a convincing performance, the "catch" in his plan was clear as day. To cut a very long story short, he said that working "people" (he never speaks of the working class) would be relieved of the "burden of the cost of living crisis" thanks to his government's "target to achieve the highest growth in the G7 within the next 5 years".

    So in fact, if the target of growth isn't achieved, within 5 years, tough luck. No pounds or even pennies will be jingling in any working pockets...

Inflation up, wages not up

The promise by Reeves that she was going to "fight for working people" was made the same day that the latest inflation figures were published by the Office of National Statistics.

    The news wasn't good. As everyone goes out to do their shopping for Christmas, they are faced with prices ising at their fastest rate since March. Official CPI inflation was 2.6% in the year to November, up 0.3% on last month. But the Retail Price Index, which is a little closer to reality, is already 3.6%.

    What's more, we're told that the New Year gift for the working class is a 5% increase in food prices! And energy and water prices are also rocketing again. But never mind that. The talking heads on radio and TV say that wages have been rising faster than prices! Only that's another one of those fairy tales which are meant to lull us all to sleep!

    Low-paid logistics workers at Ford, who were only offered a rise of 2.5% refused this and have decided that such an offer calls for a strike! And Ford's staff, who were offered a one-off payment and no pay rise at all, have already been on strike. This got them (at least!) the same 3% pay rise as Ford's hourly-paid workers. But that is, of course, below inflation - and de facto, a cut in real pay.

    What is laughable about official figures and those who act as apologists for them, is how far from reality they are. Said Grant Fitzner, chief economist at the Office for National Statistics (ONS): "Inflation rose again this month as prices of motor fuel and clothing increased this year... This was partially offset by air fares, which traditionally dip at this time of year, but saw their largest drop in November since records began at the start of the century". Air fares, as a gauge for what ordinary people can and can't afford? Which planet has he just flown to?

Poverty and waspi women

The Joseph Rowntree Foundation's "UK Povery 2024 Report" confirms what Starmer and Reeves's famous "working people" already know: that 22% of the population, that is 14.4 million people, including 2 in 10 adults, 3 in 10 children and 1 in 6 pensioners are living in poverty today.

    It's in this context that Starmer's government will never be forgiven for the cut it made in pensioners' winter fuel allowance - claiming that it was "fine", because the pensioners affected would be able to claim pension credit. This, when, to put it simply, to get pension credit one's weekly income has to be below £218.15/week and any savings over £10,000 will mean credit is cut proportionally...

    Neither will ministers be forgiven for the refusal to compensate the so-called Waspi women born in the 1950s who lost 5, 6, 7 or 8 year's worth of state pension payments when pension age was raised to 65 in 2018, because they were not properly informed. Not only that, but the change was even brought forward by 2 years and in 2020, state pension age increased one more year, to 66!

    The worst about it is that every single Labour MP, including Starmer and Rayner promised to compensate these women (and the recommendation from the Ombudsman is a pittance: a one-off payment of £1,000 to £2,950!). But now that these Labour liars are in government the constant refrain is that the "£22bn black hole left by the Tories" has paralysed them. By now probably most "working people" would like to see them disappear into it.

    Waspi women come from some of the poorest sections of the working class - the lowest paid, doing part-time temp work, without occupational pensions. Many of them worked in social care. Their only income in old age is a state pension. But Starmer has the nerve to stand up in parliament and claim that "taxpayers simply can't afford the burden". That's another lie. But Starmer&Co will never to turn the wealthy capitalists upside down and shake them in order to feed the poor. That is going to be up to the collective force of working class strike muscle! The sooner, the better.