The Chancellor’s Autumn Statement was billed as a turning point—a moment to reward work, ease the burden on households, and chart a course toward growth. But for millions of workers across the UK, the reality is more sobering. Behind the headlines of tax cuts and wage rises lies a fiscal strategy that continues to squeeze the very people who keep the country running.
The Tax Trap: A Freeze That Burns
The most significant move—cutting the main rate of National Insurance from 12% to 10%—was trumpeted as a tax cut for working people. But this gesture is dwarfed by the ongoing freeze on income tax thresholds, which the government has extended until 2028. This stealth tax, known as “fiscal drag,” means that as wages rise with inflation, more workers are pulled into higher tax bands.
The Office for Budget Responsibility estimates that the threshold freeze will raise £44.6 billion over six years.
A worker earning £35,000 will pay around £600 more in tax by 2028 than they would have if thresholds had risen with inflation.
Over 4 million more people are expected to be dragged into paying income tax or higher-rate tax by the end of the freeze.
Solidarity’s position is clear: this is not a tax cut—it is a redistribution of burden from capital to labour, from wealth to wages. Our members are being asked to fund the state while corporations enjoy record profits and shareholder payouts.
A Welcome Rise in the Minimum Wage—But Not a Living Wage
There is, however, one area where the government deserves cautious praise. From April, the National Living Wage will rise to £12.00 an hour, up from £10.42—a 15% increase. For 21- and 22-year-olds, who were previously excluded from the full rate, this marks a long-overdue correction. The government estimates that 2.7 million workers will benefit.
In practical terms:
A full-time worker on the new minimum wage will earn £1,800 more per year.
For a 35-hour week, this equates to a gross annual income of £21,840.
This is a meaningful uplift, especially in sectors like care, hospitality, and retail, where low pay has long been entrenched. But it still falls short of the Real Living Wage, which the Living Wage Foundation calculates at £12.00 across the UK and £13.15 in London—figures based on the actual cost of living.
Solidarity welcomes the increase but urges vigilance. Without robust enforcement, rogue employers will continue to underpay staff. And without parallel investment in housing, transport, and childcare, even £12 an hour will not deliver genuine security.
The Wider Labour Movement Responds
Across the trade union movement, the response to the Budget has been scathing. Sharon Graham, General Secretary of Unite, dismissed the Chancellor’s statement as “a cynical attempt to buy votes with one hand while picking workers’ pockets with the other.” She pointed to the lack of investment in public services and the continued erosion of real wages across the public sector.
Paul Nowak, General Secretary of the TUC, was equally forthright: “This Budget does nothing to fix the cost-of-living crisis. The Chancellor is giving with one hand and taking far more with the other. Working people will still be worse off at the next election than they were at the last.”
Gary Smith of the GMB highlighted the regional disparities: “This Budget does nothing for the care workers in Glasgow, the refuse collectors in Newcastle, or the NHS porters in Cardiff. It’s a Budget for the boardroom, not the break room.”
These critiques reflect a shared frustration: that the government continues to prioritise headline-grabbing tax tweaks over the structural investment needed to rebuild public services, tackle inequality, and deliver a fairer economy.
Scotland’s Workers: Caught in the Crossfire
For workers in Scotland, the Budget’s contradictions are especially stark. While the minimum wage rise will offer some relief, the tax freeze will hit hard. Scotland’s devolved income tax system already imposes higher rates on middle earners, and the UK-wide threshold freeze compounds this burden.
A Scottish worker earning £30,000 will pay around £1,500 more in income tax and National Insurance than someone on the same salary in England.
Public sector workers in Scotland, already facing pay restraint, will see little benefit from the Chancellor’s headline measures.
Solidarity calls for a coordinated response from Holyrood and Westminster to ensure that wage gains are not clawed back through stealth taxation. We also urge the Scottish Government to match the minimum wage uplift across all public sector contracts and to accelerate the rollout of collective bargaining in social care.
A Budget for Whom?
The Autumn Statement reveals a government more concerned with optics than outcomes. The Chancellor’s tax cut may dominate the headlines, but the underlying reality is one of continued austerity by stealth. Public services remain underfunded, local authorities face bankruptcy, and the social safety net is threadbare.
Meanwhile, the wealthiest continue to benefit from capital gains tax breaks, non-dom status, and corporate loopholes. The burden of funding the state has shifted decisively onto the shoulders of working people.
Solidarity stands with our fellow unions in demanding a new economic settlement—one that prioritises public investment, fair taxation, and decent work. We will continue to fight for a future where wages rise with dignity, not just inflation, and where the fruits of growth are shared by all, not hoarded by the few.
Welcome to this week’s edition of Union News, your go-to source for updates and insights into the labour and trade union movement across the United Kingdom. Edited by Pat Harrington, Union News brings you the latest stories, campaigns, and developments shaping the world of workers and their rights.
In this edition:
Hairdresser Wins £90K Payout After Pregnancy Demotion
Princes Workers Strike Over Union-Busting and Broken Pay Deal
Historic Strike to Shut Down Major Museums
Thames Water Collapse Looms Amid Mounting Debts
Four-Day Week Gains Momentum as Future of Work in Britain
Tax Office Strikes Continue Over Sacking of Union Reps
and, Energy Bills Push 40% of Brits Into Financial Anxiety for 2025
Hairdresser Wins £90K Payout After Pregnancy Demotion
A senior stylist has been awarded almost £90,000 in compensation after an employment tribunal ruled that she had been “effectively demoted” following her pregnancy announcement. Kayleigh Flanagan, who worked at Envy Hair and Beauty, said she experienced a sudden change in attitude from her employer, Amy Jury, after disclosing her pregnancy via text message in December 2019. The tribunal found that her duties were reduced to those of an apprentice, including cleaning and making tea, instead of her usual role as a senior stylist and technician.
The tribunal heard that Ms. Flanagan was removed from the salon’s online booking system, stripped of her regular customers, and subjected to increased scrutiny over her work. In one instance, she was given a final written warning for allegedly being rude to a client and providing poor customer service. Although the warning was later downgraded to a first written warning after an appeal, Ms. Flanagan reported feeling undermined and isolated at work.
Her situation deteriorated further when she raised concerns about a lack of risk assessments regarding her pregnancy, as required by workplace regulations. Despite these complaints, no meaningful action was taken, and Ms. Flanagan went on maternity leave in April 2020. Feeling unsupported and fearing for her mental health and safety, she ultimately resigned from her role in November 2021, a move the tribunal deemed constructive dismissal.
In its judgment, the tribunal stated that Ms. Flanagan had been unfairly treated, noting that she was systematically demoted to tasks far below her qualifications and experience. The ruling concluded that her employer’s actions created an intolerable working environment, leaving her with no option but to resign. Ms. Flanagan described the ordeal as having a devastating impact on her mental health, adding that it forced her to prioritize her wellbeing and that of her family.
The tribunal ordered Envy Hair and Beauty to pay Ms. Flanagan £89,849 in compensation for constructive unfair dismissal. The case highlights the importance of protecting pregnant employees from discrimination and ensuring that workplace practices comply with legal obligations. Ms. Flanagan’s victory serves as a warning to employers about the consequences of failing to support staff during pregnancy and maternity leave.
Princes Workers Strike Over Union-Busting and Broken Pay Deal
Unite union members at five Princes Food factories have accused their employer of union-busting after threats to transfer jobs overseas. Workers, who previously agreed to a pay deal, say the company reneged on the agreement following a takeover by Italian food conglomerate Newlat. Strike action is underway across sites in Cardiff, Glasgow, Lincolnshire, Bradford, and Wisbech. Unite general secretary Sharon Graham called the company’s actions “shameful” and vowed to support workers “every step of the way.”
The dispute stems from a pay rise of 5 to 7 percent agreed under the company’s former ownership by Mitsubishi, which Unite says Newlat has refused to honour. Workers say this decision has eroded trust and left them struggling amid rising costs. The union claims that threats to relocate jobs overseas are a clear attempt to undermine the workforce’s collective power.
Unite has accused Princes of employing union-busting tactics to silence dissent, but workers remain defiant. “If Princes thinks its threats will weaken workers’ resolve, it has another think coming,” said Graham. She criticized the company for “pulling the rug out from under” employees and escalating tensions by refusing to negotiate in good faith.
The ongoing strikes have disrupted production at the factories, with union members urging the public to support their cause by boycotting Princes products. Calls for solidarity have grown louder as workers fight for fair pay and job security in the face of corporate indifference. Princes has been invited to comment on the situation but has yet to respond.
Historic Strike to Shut Down Major Museums
Security guards at three of London’s most iconic museums are preparing for a month-long strike, marking the longest industrial action in the history of these institutions. More than 100 workers at the Natural History, Science, and V&A Museums, represented by the United Voices of the World (UVW) union, are demanding £16 an hour and equal terms with directly employed staff.
The strike will bring total industrial action at the museums to 50 days, with workers calling on the public to avoid visiting these cultural landmarks during the dispute. Guards from the Young V&A Museum in Bethnal Green and the V&A East Museum in Stratford have also joined the fight for fair treatment.
Union representatives visited V&A trustee Amanda Levete to deliver a letter outlining their demands, but she declined to meet them face-to-face, promising only a written response. UVW general secretary Petros Elia has called the museums’ defense of outsourcing an example of institutional racism, pointing out the stark racial disparity between contracted guards and directly employed staff.
UVW member and V&A guard Edi Palalej said the lack of engagement from museum trustees was disappointing but not discouraging. “We are standing together to demand respect and equality,” Palalej stated.
The strike action has drawn widespread attention to the growing issue of pay disparities and working conditions in the UK’s cultural institutions. UVW has pledged to support workers for as long as necessary to achieve fair pay and treatment.
Thames Water Collapse Looms Amid Mounting Debts
Thames Water is on the brink of collapse, burdened with £19 billion in debt and facing a critical High Court hearing next month over a £3 billion emergency loan. The utility giant has warned it will run out of cash by March unless the court approves the loan, despite its high-interest rate of 9.75 percent and associated fees.
The government is reportedly exploring options to place Thames Water under special administration to keep services running. Campaigners argue the crisis highlights the failures of privatizing an essential monopoly.
Matthew Topham of We Own It said: “Thames Water’s impending collapse is the ultimate result of privatizing an essential monopoly like water. It’s time to bring water services into local, democratic public ownership.” He called for renationalization to stabilize the company and improve its standards.
The company’s financial woes have drawn criticism after Ofwat fined it £18.2 million last month for unjustified dividends totaling £158.3 million. Meanwhile, water company Severn Trent announced plans to increase shareholder dividends while raising customer bills by 47 percent over the next five years.
Public outcry continues to grow, with many calling for government intervention to ensure sustainable and affordable water services for all.
Four-Day Week Gains Momentum as Future of Work in Britain
The four-day working week is rapidly becoming the future of work in Britain, campaigners say, as over 200 employers, including a district council, have embraced the model.
The 4 Day Week Foundation is driving the push for a shortened workweek with no reduction in pay or benefits. Campaign director Joe Ryle argued that the five-day week, established a century ago, is outdated. He highlighted the successes seen by companies and public organizations, stating, “A four-day week with no loss of pay can be a win-win for both workers and employers. With more free time, people can live happier, more fulfilling lives.”
The Trades Union Congress (TUC) also supports the shift, citing benefits such as improved productivity, cost savings, and stronger employee retention. TUC general secretary Paul Nowak emphasized the importance of flexibility, noting that while not all jobs can support a four-day week, some form of flexible working is possible for all roles.
Campaigners and unions are calling for broader adoption of the four-day week, positioning it as a key step toward a more balanced and productive future for workers and businesses alike.
Tax Office Strikes Continue Over Sacking of Union Reps
Workers at HMRC’s Benton Park View office in Newcastle are striking for two months in protest against the sacking of three union representatives who led walkouts last year. Rachel Farmer, Gordon Askew, and Joel Hamilton were dismissed in early 2024 after spearheading national action over pay and pension restoration. The PCS union claims the dismissals are an attack on union rights.
Rachel Farmer, a 20-year civil service veteran, described the experience as a “shock to the system” but vowed to keep fighting. Acting PCS branch secretary Angie Foggett said the workplace has become toxic, with employer relations at an all-time low. “This is an attack on our branch and an attack on democracy within the civil service,” she said.
The strikes have disrupted critical services during tax self-assessment season, with customers facing long wait times due to understaffed call centers. Union members insist the campaign will continue until management agrees to negotiate.
The dispute has drawn widespread solidarity from other unions and workers, underscoring the broader fight against anti-union practices. Foggett emphasized the importance of standing together, saying, “An attack on one is an attack on us all.”
Strikes and picket lines are set to continue until February 14, with calls for unionists to show their support.
and finally,Energy Bills Push 40% of Brits Into Financial Anxiety for 2025
Over 40% of adults in Britain expect their finances to worsen this year, with rising energy bills cited as the primary cause, according to the StepChange Debt Charity. Of those anticipating financial strain, 59% blame higher energy costs, while 17% report constant money worries. Women are particularly affected, with 58% more anxious about finances compared to 48% of men.
Since 2021’s energy crisis, British energy companies have amassed £457 billion in profits by mid-2024, as reported by the End Fuel Poverty Coalition.
StepChange’s chief executive, Vikki Brownridge, warns of worsening financial uncertainty, especially for women and parents, stressing that these challenges are long-term and require urgent support. Nearly 4,000 people sought debt advice on Christmas Day alone, underscoring the strain.
The findings highlight the urgent need for action as families face another difficult year.
