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What’s Labour done for working people? February 2005

Introduction by Ian McCartney

When the Labour Government came to power in 1997 it inherited an economy that had been crippled from years of boom and bust, public services which had suffered from systematic under-investment, a statute book crammed full of anti-employee and anti-trade union legislation and a deeply unequal society.

Since then, Labour has embarked on a massive programme of change: working towards economic stability, full employment, investment in public services, improved rights for working people and their trade unions and a more open, fair and equal society.

A great many achievements have been made. This booklet spells out those achievements, sets out what Labour is committed to deliver in a third term of government, and underlines what there is to lose if the Tories were to regain power.

Trade unions and their members have a huge role to play in helping the Labour Party to win a third term. Unions will continue, quite rightly, to put the interests of their member’s first and to push for further improvements. However, building upon the rights and improvements which have been made, is crucially dependent upon Labour winning a third term in power.

We must work together if Labour is to win a historic third term and we are to achieve our shared goals!

Ian McCartney
Labour Party Chair

Labour’s objective is to build a stronger economy and a fairer society, with opportunity and security for all. Labour’s long-term goal is to deliver world-class public services through investment and reform, and high and stable levels of growth and employment.

Key achievements

• The UK economy has grown in every quarter since Labour came to power, with employment up by two million and over 150,000 extra businesses since 1997.
• Britain is enjoying the longest period of sustained low inflation and interest rates since the 1960s.
• Lower mortgage rates are saving mortgage payers an average of £3,780 a year – £315 a month – compared to under the Conservatives.
• Labour is delivering strong and dependable public services through sustained investment and reform.

Labour’s economic record

• Economic stability and sustained growth: The British economy has continued to grow uninterrupted in every year of the past seven years and Britain has enjoyed the longest period of sustained low inflation and interest rates since the 1960s. Lower mortgage rates are saving mortgage payers an average of £3,780 a year – £315 a month – compared to under the Conservatives.

• Sound public finances: The public finances remain sound and on track to meet the Government’s fiscal rules, with borrowing firmly under control. The national debt has been cut from 44 per cent of GDP in 1997 to just 34 per cent now – lower than in any other major industrialised economy.

• Low unemployment: Britain has the lowest unemployment since 1975. Since Labour came to power in 1997, there are two million more people in work.

• Strong public services: Labour is delivering strong and dependable public services through sustained investment and reform. The majority of future investment in public services will go on Labour’s key priorities of education, health, transport, housing and the fight against crime.

Employment and jobs

Labour’s sound economic management and investment in active labour market policies mean that Britain now has the highest employment and lowest unemployment of any of the major (G8) world economies. Labour’s aim is to have, by the end of the decade, a higher proportion of people in work than ever before, as Britain moves towards the goal of full employment in every region.

Key achievements

• The number of people in work is now at record levels, up by two million since 1997.
• At 4.7 per cent, the unemployment rate is the lowest since 1975.
• Over 1 million people have been helped into work through the New Deal
• Both long-term unemployment and long-term youth unemployment have been cut by over 75 per cent since 1997.

Labour’s record

• Lowest unemployment for 30 years: At 28.5 million, employment is at record levels, up by two million since 1997. Employment is up in every region and nation of the UK. Both ILO and claimant unemployment has fallen by over 650,000 since 1997.

• Success of the New Deal: To date, the New Deal has helped well over a million people into work, including 535,000 young people and 296,000 lone parents. Since 1997, both long-term unemployment and long-term youth unemployment have been cut by over 75 per cent and the lone parent employment rate has reached its highest level ever with more than half in work.

• Making work pay: The Working Tax Credit helps to make work pay and encourages people to move off benefit and into work. The National Minimum Wage – an historic achievement that has benefited over 1.6 million people – underpins the system of in-work tax credits and guarantees a fair minimum income from work. 

Labour and the workplace

Key achievements

• The minimum wage has lifted 1.6 million people out of poverty wages. The rate has steadily increased by 35 per cent since its introduction and is now £4.85. We have introduced a new youth rate for 16 and 17 year olds, balancing the need to protect young workers while encouraging them to stay in education or training.

• Working people now enjoy four weeks’ paid holiday, at least one day off per week and rest breaks.

• New mothers enjoy 26 weeks paid maternity leave, fathers 2 weeks’ paternity leave and adoptive parents have gained six months’ paid and six months’ unpaid leave.

• Over 1 million parents of young children have taken up their right to request flexible working. 

• Part-time workers now have the same rights as full time staff including equal pro-rata pay, pension and holiday entitlement.

• Introduced the right to trade union recognition where the majority of the workforce is in favour.

• Given employees a right to be accompanied in disciplinary and grievance hearings.

• Strengthened protection against unfair dismissal and reduced the qualification period for protection from two years to one and increased the upper limit on compensation to over £50,000.

• Employment levels are at a record high and new businesses are opening every day creating new work opportunities.

• Helped one million people back into work through the New Deal.

• Established the Union Learning Fund which has helped over 100,000 workers back into learning.

• Introduced protection rights for workers from dismissal and victimisation for whistleblowing.

• Introduced protection against discrimination in employment on the grounds of age, sexual orientation and religion.

What Labour has done for working people since 1997

Some key achievements – at a glance:

• Employment levels at a record high;
• Helped one million people back into work through the New Deal;
• The New Deal for Skills;
• Working Tax Credits and Child Tax Credits benefiting six million families;
• A National Minimum Wage;
• An entitlement to 4 weeks paid leave;
• Given workers the option of limiting their working week to 48 hours;
• Minimum rest breaks (at least one day off per week, 11 hours uninterrupted rest each day, rest breaks during the day);
• The rights for time off for domestic emergencies;
• The right to request flexible working;
• Improved maternity pay and leave; 2 weeks’ paid paternity leave; 26 weeks’ paid adoption leave;
• Parents of young children given an entitlement to up to 13 weeks unpaid leave;
• Extended rights for part-time employees;
• Strengthened protection against unfair dismissal;
• Reduced the qualification period for protection against unfair dismissal from 2 to 1 years. Increased the upper limit on compensation to over £50,000;
• Protected workers from dismissal or victimisation for whistleblowing;
• Restored trade union rights at GCHQ within 13 days of coming to power;
• Trade union recognition when there is a majority of in favour;
• Employees have a right to be accompanied in disciplinary or grievance hearings;
• Ended two-tier working in local government;
• Protection against discrimination in employment on the grounds of age, sexual orientation and religion;
• Set up the Union Learning Fund assisting over 100,000 workers back into learning; and new rights for union learning reps;
• Introduced Partnership at Work Fund and Union Modernisation Fund.

Families and Children

Labour is reforming tax and benefits to guarantee decent family incomes, extending employment opportunity to all, supporting parents in their parenting role and delivering high quality public services. Labour is committed to halving child poverty in ten years on the way to abolishing it in a generation.

Key achievements

• To date, over half a million children have been lifted out of relative poverty and over two million out of absolute poverty.
• Compared to 1997, families with children are on average £1,350 a year better off in real terms as a result of Labour’s tax and benefit reforms; the poorest households with children are £3,000 a year better off.
• New mothers have gained 26 weeks paid maternity leave, fathers 2 weeks paternity leave. Parents with young or disabled children have the right to request flexible hours.
• Six million families are benefiting from the new tax credits – the Child Tax Credit and the Working Tax Credit.

Labour’s record

• Help for families: In April 2005, Child Benefit will rise to £17.00 for the first child and £11.40 for subsequent children – a 25 per cent real terms increase since 1997. The Child Tax Credit combines with Child Benefit to ensure a family with two children and annual income less than £50,000 are guaranteed £38.90 a week.

• Childcare: Since 1997, childcare places benefiting well over 1.6 million children have been created; free part-time nursery education has been guaranteed for all four year olds and now all three year olds; and local Sure Start programmes supporting families in disadvantaged areas have been set up.

• Making work pay: The Working Tax Credit helps to make work pay and encourages people to move off benefit and into work. The National Minimum Wage – an historic achievement that has benefited over 1.6 million people – underpins the system of in-work tax credits for workers on low earnings and guarantees a fair minimum income from work. It rose to £4.85 for adult workers in October 2004.

• A healthy work-life balance: Employees now enjoy four weeks’ paid holiday, at least one day off per week and decent rest breaks. New mothers enjoy 26 weeks paid maternity leave, fathers 2 weeks’ paternity leave and adoptive parents gain six months’ paid and six months’ unpaid leave.

Equality

Labour’s vision is of an equal, inclusive society where every citizen is treated with respect and where there is opportunity for all. Labour wants to measurably improve the lives of all of those who are discriminated against. The task is to promote equality for all regardless of gender, sexual orientation, race, religion or belief, age or personal disability.

Key achievements

• Labour has widened and strengthened the Race Relations Act to include a positive duty on public bodies to promote race relations.
• Section 28, the most significant piece of anti-gay legislation, has been repealed and the age of consent has been equalised at 16 for everyone.
• Through Civil Partnerships Labour is giving same-sex couples the opportunity of gaining a legal status for their relationships.
• One million women have higher pay, thanks to the minimum wage.
• Employees with young children now have the right to request to work flexibly.
• There are now more disabled people in employment than ever before. 

Labour’s record

• A fair deal for women at work: Labour introduced the biggest ever package of family-friendly rights – increased maternity leave and pay, paternity rights for the first time, and a new law to help parents to balance work and family responsibilities.

• Action for disabled people: Introduced legislation to set up the Disability Rights Commission; introduced the New Deal for the disabled; and since October 2004 this year all businesses need to make reasonable changes – such as adapting premises, removing physical barriers or providing the service another way – so that disabled people can use their service.

• Legal recognition for transsexual people: the Gender Recognition Act gives transsexual people legal recognition in their acquired gender and ensures that transsexual people are afforded all the rights and responsibilities appropriate to that gender.

Women

Labour starts from a simple belief: that everyone is of equal value, entitled to respect for their rights. Although gender inequality is not something that Government can tackle alone, Labour has made significant changes. Labour has improved parental rights and pay; given parents the right to ask to work flexibly; introduced legislation to get more women into parliament; and is taking action to tackle domestic violence.

Key achievements

• One million women have higher pay, thanks to the minimum wage. Labour is working to reduce the gap between men's and women's earnings;
• Increased maternity pay and leave, and a new right to request flexible working, so mothers can better balance work and family life;
• Labour has stepped up the campaign against domestic violence and is  engaged in the most radical overhaul in domestic violence legislation for 30 years which includes significant new powers and expanded support projects that enhance victim protection as well as a register of civil orders against alleged offenders;
• A National Childcare Strategy, and help with childcare costs, through tax credits, benefiting nearly 1.3 million families.

Labour’s record

• Supporting mothers: The National Childcare Strategy is helping to expand good quality, affordable childcare. Maternity leave has increased from 14 to 26 weeks and pay has increased to at least £102.80 a week. Parents have the right to request flexible working.

• A fair deal at work: Around one million women have benefited from the introduction of the minimum wage.

• Security in retirement: Helping the poorest and most vulnerable pensioners, the majority of whom are women, through free TV licences for over 75s, the winter fuel payment and the Pension Credit.

• Gender pay gap: Has established a new Women and Work Commission (chaired by Margaret Prosser, former TGWU deputy general secretary) which will make recommendations within one year on tackling the gender pay gap.

• A public voice: campaigned to encourage more women onto the boards of national public bodies. Gave political parties the right to take measures to increase the numbers of women elected at all levels – only Labour has used these new powers.

Remember the Tories

The Tory record on the Economy

When Michael Howard was in office, it was the hard working people of Britain that were forgotten with interest rates at 15%, the poll tax and mass unemployment. Michael Howard’s only approach to the future is to take Britain back to a failed Tory past.

• Between October 1989 and October 1990, interest rates were at 15% for an entire year;
• Between 1990 and 1993, 1.5 million homeowners suffered negative equity;
• Between 1990 and 1993, 250,000 properties were repossessed;
• Black Wednesday cost Britain at least £3.3 billion;
• Between 1992 and 1996, around 1,000 businesses went bust every week;
• In 1993 and 1994, borrowing hit a record £50 billion, as the public finances ran out of control.
• Inflation reached 10 per cent.

The Tory record on Employment and Jobs

• The Tories are the party of mass unemployment;
• The Tories believe that unemployment is a price worth paying;
• In 1993 unemployment reached 3 million;
• When the Tories finally left office, one in five families had no-one in work;
• The Tories opposed the national minimum wage, the Social Chapter, and the New Deal.
• After opposing the introduction of the National Minimum Wage (NMW) and consistently opposing subsequent rises, the Tories are still refusing to give a commitment to retain the Low Pay Commission – the body which sets and oversees the operation of the NMW - and therefore the Minimum Wage itself.

The Tory record in the Workplace

• Opposed the introduction of the National Minimum Wage;
• Axed Wages Councils and protection for the low-paid;
• Refused to implement European Legislation to give British workers parental leave, rights to breaks, and paid holidays;
• Saw unemployment rise to over 3 million and said that it was a ‘price worth paying’.

“We think it (the New Deal) is misspending or waste, however you want to put it”

Oliver Letwin, the Today Programme, 10 December 2003

“There is the belief that somehow, the way to solve our problem of economic inactivity and unemployment is to pour more investment in education and training into the empty vessels of these unemployed people.”

David Willetts, speech to the Policy Exchange, 28th April 2004

In October 2004, Michael Howard said in a speech to the Scottish IoD:

“If Labour were to win a third term, Labour would be bound to lurch to the left. The increase in union influence has already begun. In July this year, the unions extracted more than 50 concessions from the Labour leadership at the National Policy Forum at Warwick. Let me tell you what to expect. Greater employment rights, such as extending rights to temporary workers and increasing statutory holidays; greater protection for strikers; a training levy; greater parental leave; less selection in schools; and a commitment to legislate on corporate manslaughter ……. You have been warned.”

The Tory record on families and children:

• When the Tories finally left office, one in three children were growing up in poverty;
• Child Benefit frozen for three years;
• Maternity leave was just 14 weeks.

The Tory record on Equality

• Introduced Section 28 – the most significant anti-gay piece of legislation.

• Opposed the introduction of the National Minimum Wage which has helped 1.6 million people, over one million of them women. Will allow the NMW to wither on vine, refusing to increase it above inflation. Have refused to confirm that they will keep the Low Pay Commission.

“Out-of-touch, anti-women, greedy and divided” – the Tories’ verdict on themselves

A secret Tory document has spelt out a catalogue of reasons not to vote Tory.

The training manual for Tory election candidates admits the Conservatives are seen by the British people as ‘out-of-touch, anti-women, greedy and divided’.

Remember the Liberal Democrats

• The Liberal Democrats described last year’s rise in the NMW as ‘dangerous’, and have still not revealed the size of wage cut workers on the NMW would suffer under a Liberal Democrat Government.

• Have criticised Labour’s working time legislation, describing it as ‘unnecessary’ and a ‘drag on business efficiency’.

• Opposed the 10p tax rate, have pledged to scrap the Child Trust Fund, and would return Britain to Tory levels of unemployment by scrapping the New Deal.

• Opposed Pensioners free television licences, the Winter Fuel Allowance and have pledged to scrap Labour’s Pension Credit.

“Making a commitment to a two-year deal, at levels significantly above inflation and at nearly double the current level of average earnings growth, sets a dangerous precedent at a time of almost unparalleled uncertainty.”

Vince Cable MP, Shadow Chancellor, Press Association, March 2003 – speaking about the rise in the National Minimum Wage.

DTI five year plan
www.dti.gov.uk/about/fiveyearprogramme.pdf

Pre Budget report
www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr04/report/prebud_pbr04_repindex.cfm

Women and Work Commission
www.womenandequalityunit.gov.uk/women_work_commission/

Full and fulfilling employment – publication from the DTI
www.dti.gov.uk/er/emar/fullemp.pdf

Department of Trade and Industry
www.dti.gov.uk

Her Majesty’s Treasury
www.hm-treasury.gov.uk

Trade Union Congress
www.tuc.org.uk

DTI – work life balance campaign
www.dti.gov.uk/bestpractice/people/flexible-working.htm

TULO
www.labour.org.uk/tulonational

Unions Together
www.unionstogether.org.uk

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