Tackling In-Work Poverty Across Europe: Options for Campaigners

1. Tackling In-Work Poverty Across Europe: Options for Campaigners EAPN General Assembly Oslo June 2012

2. Tackling In-Work Poverty in Europe Workshop aims: • To get a better understanding of in-work poverty in different European counties • To share knowledge on the policy responses to in-work poverty • Consider the possibility of co-ordinated action to address in-work across Europe

3. Tackling In-Work Poverty in Europe Workshop format: • Part 1: Causes and consequences: sharing our understanding of in-work poverty and the responses to it • Part 2: Campaigning against in-work poverty: opportunities and options • Inputs on national situations from UK, Germany, Ireland, Spain & Denmark

4. In-work Poverty in the UK • Proportion of poor households accounted for by working households has been increasing in the UK for last 10 years • Before the recession more than half of children in poverty were living in households where someone was in work • In 1999 47% of poor children had working parents, by 2009 it was 60%. • Number of working age adults in poverty has increased by almost 1 million since 2001. • 800,000 are in employment

5. Employment and In-work Poverty • In 2010 26 % of women and 14% of male employees in the UK were paid less than £7.50 an hour. Down by 11% and 3% respectively since 2000. Most of the fall came up to 2006 • Around 5.1 million people were low paid in 2010, with around 46% in wholesale and retail. 45% of part-time workers were low paid • Still significant ‘churn’ in the labour market. ½ of all men and 1/3 of all women making a new claim for JSA were claiming less than 6 months before

6. Incomes & Employment

7. In-Work Poverty Across Europe What is the picture of in-work poverty across Europe: • What are the levels of in-work poverty? • Are the trends getting better or worse? • Who is affected – young people, women, migrants? Inputs from Germany, Ireland, Spain & Denmark

8. Policy to Address In-Work Poverty • Key element of UK anti-poverty policy has been to ‘make work pay’ – central of the welfare reform agenda for 10 years and most recent reforms • Main policy developments include introduction of National Minimum Wage in 1999, and a range of Tax Credits paid to people in low paid employment • Also a range of policies to improve skills and employability • However, most policies have been focused on improving work incentives rather than addressing poverty

9. Problem Policies & In-Work Poverty • NMW had a significant impact on in-work poverty. However it has not been set in line with needs but with what can be 'afforded' • Also few resources devoted to enforcing the NMW – few prosecutions and evidence of abuse in some sectors • Increasing interest by some policy makers at local and national levels at potential to use public procurement as a means of addressing low pay • Still a 'minority interest' in policy terms – focus remains on jobs rather than quality

10. Policy responses across Europe What are national Governments doing to address in-work poverty across Europe: • Is it a policy priority in existing strategies? • Is there a National Minimum Wage and is it adequate? • Is there a system of tax credits and do they help life people out of in-work poverty? Inputs from Germany, Ireland, Spain & Denmark

11. Campaigning Against In-work Poverty: Living Wages in the UK • LW campaigns start from the position that incomes for many people are not adequate • Make use of minimum income standards research to identify a target figure • This is not a figure that is necessarily used in campaigns for statutory legal minimum pay – although many argue it should be • LW campaigns focus demands directly on employers, rather than seeking legislative redress to low pay

12. More than Money – Benefits of a LW approach • LW campaigns have roots in attempts to build grassroots demands for social change • They are explicitly focused on building community power, as opposed to relying on expert lobbyists to create change • They enable broad based coalitions to develop around very focused aims • They also incorporate demands around working conditions – hours, trade union recognition, training etc

13. London Living Wage Campaign • Developing since mid 1990s, launched in 2001 • Has been based on the development of a coalition of trade unions, faith groups, schools, community groups • Campaign has been rooted in community demands (community organising) • Has made a real difference - £24million to low paid workers • Created a political consensus around issue of low pay

14. Scottish Living Wage Campaign • Launched in 2007, first real successes in 2009 • Not taken an explicitly community organising approach – have sought to create political consensus • Some big wins, Almost entire public sector in Scotland pay living wage of £7.20 • Has significant implications for procurement policies and wider pay bargaining • Need to focus on community campaigns to get to wider private sector

15. Scottish Living Wage Campaign

16. Living or Minimum Wage? • There are many positive aspects to a living wage approach to addressing in work poverty – improved pay for some, better conditions, new coalitions, stronger campaigns • But: the approach is not comprehensive, some low paid workers may not be helped. • 'Hardcore' private sector is difficult to change • Is there a need for minimum wages to be based on what workers need to live on as opposed to the minimum

17. Campaigning against Low Pay What are anti-poverty campaigners doing to address in-work poverty? • Are there active campaigns against low pay? Who is involved in the campaigns? (trade unions, faith groups, etc) • What are the demands of the campaigns? • Has there been any successes? Inputs from Germany, Ireland, Spain & Denmark

18. EAPN National Networks and Low Pay • EAPN is developing a position paper on in-work poverty. We have repeatedly raised the issue at national and European level. But what else could we do? Some points for final discussions: • Is there potential for co-ordinated action against in-work poverty across Europe? • What would our targets be? Policy change or action focused on employers? • Who would or partners be at the national and European levels? • What resources do we need?