Widening inequality, stagnant pay – Britain urgently needs Labour’s hard-won workers’ rights | Polly Toynbee
Source: Guardian Jobs ↗
Britain’s workforce is now more dissatisfied than ever, according to today’s British Social Attitudes (BSA) survey, which records the lowest level of job satisfaction in its history. Workers cite inflexible hours, stalled career prospects and, above all, stagnant pay as the chief grievances. Pay growth has been flat for a decade—the first time such a prolonged pause has been seen since the Napoleonic era, according to economist Paul Johnson—and the past year saw pay inequality widen for the first time in ten years, with the top 10 % of earners enjoying a 7.3 % rise while the bottom 10 % saw only a 1.1 % increase, as noted by Resolution Foundation analyst Mike Brewer. The national living wage has ceased outpacing median earnings, while top‑end salaries have surged, creating the widest gap between top‑ and bottom‑pay rises on record and cementing Britain’s status as the most unequal nation in western Europe, where the richest 1 % now own more than the poorer half of the population.
The survey also reveals a sharp shift in public opinion on inequality: in 2006, only a quarter of respondents thought the government should narrow the rich‑poor divide, but that figure has more than doubled to 53 % today. Expectations of upward mobility have fallen, with the share of people who believe they can advance in their careers dropping from 35 % to 26 %. Despite higher educational attainment among young people, they face slimmer prospects for earnings and asset accumulation than their parents, a trend that Professor John Curtice, editor of the BSA findings, warns could become a “recipe for social disaster.” Meanwhile, the work ethic remains strong—just 4 % would quit if they could, and only 2 % of young people express a desire to stop working—yet willingness to exceed job requirements has hit a decade low.
In response, Labour’s 2024 manifesto proposes a suite of new workers’ rights aimed at reversing the decline. The plan would give employees stronger control over their hours, require employers to provide specific business reasons for refusing flexible‑working requests, and allow union representatives to visit any workplace—including fast‑food outlets, care homes and offices—to recruit without fear of retaliation. It also seeks to ban zero‑hours contracts and guarantee stable schedules and pay. Although business lobbies and Tory commentators have decried the measures, a YouGov poll for Acas shows 78 % of the public, including Conservative and Reform voters, backs the reforms, suggesting broad electoral appetite for stronger employment protections.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Confidence among international firms may wobble until the picture clears.
- ▶Global supply chains might feel a slight tremor as businesses adjust.
🏙️Local Economylow impact
What this means for you
- ▶Employers in the area might rethink their hiring plans.
- ▶Job hunters should check whether openings in the sector are affected.
🏦Rates & Banksmedium impact
What this means for you
- ▶Central bankers rarely rush; they prefer to see how the dust settles.
- ▶Banks generally prefer a wait-and-see approach before touching their rates.
❤️Healthmedium impact
What this means for you
- ▶Talking things through with family or friends can ease the load.
- ▶The strain, if any, tends to show up quietly in everyday life.
💷Wealthhigh impact
What this means for you
- ▶Redundancy pay, where it applies, is worth understanding in full.
- ▶Those affected may want to top up an emergency fund and check pensions.
🏠Housinglow impact
What this means for you
- ▶Asking prices in the area might firm up or soften only gradually.
- ▶Rental yields in the area may shift only slightly, if at all, from this.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.