Call for 'new deal' for low-paid key workers post-Covid

Those in lower paid employment which has been deemed essential during the Coronavirus crisis should be given a “new deal” in the post-pandemic world, Citizens Advice Scotland has said.

Key workers who are not well paid should be given a 'new deal', according to Citizens Advice Scotland.

CAS said that other measures such as redesigning existing support schemes like the Warm Home Discount to more effectively target people in need and writing off old local government debt such as council tax arrears over five years old that cannot be realistically recovered, should also be brought in by the government.

The measures are included in a submission handed to the Scottish Government’s advisory group for economic recovery this week which states that the government should take steps to minimise the cost of living and maximise income to help Scots financially survive after the pandemic is over.

This comes as CAS this week revealed that over a third of people polled are concerned about their incomes during the pandemic.

The submission will say that those in low-paid professions such as cleaners and retail workers should be considered for higher wages and offered flexibility around caring responsibilities. It says that consideration should also be given to the economic value of unpaid work, particularly care, especially if there is a lengthy return to normal which prevents people taking on paid work.

The submission states: “Many low-paid workers do jobs that will always be required – retail workers, cleaners, care workers, those inhospitality – and their value isn’t always best measured in immediate productivity figures and certainly not reflected in their wages.

“Their wellbeing value in terms of facilitating social interaction and connection, keeping workplaces and public places hygienic and safe and the knock-on economic benefits of lower reliance on health and other public services has not been appropriately recognised to date.

Scotland cannot plan a recovery on the basis of training everyone on a low wage into ‘high-quality jobs’. Those jobs are important and must still be done. Instead, the value of those roles and workers should be recognised in a new deal for those in traditionally low-paid sectors that considers higher wages and offers flexibility around caring responsibilities."

The submission also said that state support for business should be contingent on fair work principles and be used to encourage recruitment and training opportunities in deprived communities.

CAS chief executive Derek Mitchell said: “The economic fallout from Covid-19 will be hugely challenging for Scotland, and it’s essential that steps are taking to maximise incomes and minimise the cost of living for people to ensure inclusive economic growth. That’s why our recommendations to the Scottish Government’s Advisory Group pout these principles front and centre. From further investment in energy efficient housing to redesigning the Warm Homes Discount we want to see action to bring down energy costs for people while we try to meet the challenge of net zero.

He added: “Better pay and conditions for working people, especially key workers whose work has been revealed as essential during coronavirus, will also be vital. We’d encourage policy makers to be bold and explore a minimum income guarantee.

“People who are burdened with making challenging debt repayments cannot fully participate in the economy which then holds back growth. That’s why we think old local government debts such as council tax or rent should be written off, for example debts over five years old where further recovery action is pointless, and payments spread very thinly for more recent debts, to allow people to prioritise their current payments and recover their financial wellbeing.”

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