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Paying for dignity lets life flourish

The Real Living Wage is the pragmatic way to safeguard the dignity of workers. Campaigner Ryan Gilfeather explains how it takes away the barriers to flourishing lives.

Ryan Gilfeather explores social issues through the lens of philosophy, theology, and history. He is a Research Associate at the Joseph Centre for Dignified Work.

At twlight, the lit office windows of two tower blocks contrast with a darkening sky
Night in London's financial district. when many cleaners work.
CGPGrey, CC BY 2.0, via Wikimedia Commons.

Christians have been at the heart of the campaign for the Real Living Wage since the movement began in 2001.  Alongside other faith and community groups, Christian leaders in East London noticed that so many people in their communities were paid so little that they had to work two jobs just to get by. These workers had to choose between feeding their children and seeing them. They did not even have time to go to church or pray. Christians have objected to poverty wages ever since because these wages deny the inextinguishable dignity of each person; their faith drives them to campaign for wages sufficient for the means of life 

The Real Living Wage is the minimum hourly pay rate someone needs to earn to be able to afford the means of life if they work full time. That’s £11.95 in London; £10.90 everywhere else. It’s calculated by the Resolution Foundation; a policy think tank that focuses on improving outcomes for people on low and modest incomes.  

A campaign run by The Living Wage Foundation encourages employers to agree to pay all their workers this amount.  

It is not to be confused with the so-called National Living Wage, which mandates by law that all workers 23 and older be paid £10.42 an hour.

Since we are all fundamentally equal, we all deserve the same dignity. This dignity involves allowing all to flourish in the ways a human being should. 

Many Christians support the Real Living Wage because the Bible leads them to believe that every single human being shares the same fundamental dignity and value. As the story of creation says, everyone is made in ‘the image of God.’ Nothing is of greater value than God, so no thing in this world is more valuable than the image of God. Since we are all fundamentally equal, we all deserve the same dignity. This dignity involves allowing all to flourish in the ways a human being should, for example health, faith, family relationships and opportunities for children.  

As each year passes, the way to safeguard the dignity of all in relation to work changes. Wages and working conditions change over time. When positive patterns emerge Christians praise and support them, but when insidious structures emerge, they challenge them. Safeguarding the inherent dignity of all human beings requires moral pragmatism. It demands that Christians always consider which changeable means can help attain the unchanging goal of human dignity.  They see the Real Living Wage as a pragmatic way of safeguarding what the Bible teaches about human dignity, because poverty wages compromise it.  

Poverty wages undermine workers’ ability to flouring in faith, health, family relationships, and opportunity for their children. 

Voices of those on poverty wages reveal its damaging effects. In December 2022, a church in the heart of London’s financial district,, St Katherine Cree, hosted a carol service in English, Spanish and Portuguese. The intended congregation were not financiers but cleaners. Alongside singing carols and listening to bible readings, the service included testimonies from cleaners and their families, expressing their sense of life and faith. These testimonies exposed how poverty wages undermine workers’ ability to flouring in faith, health, family relationships, and opportunity for their children. 

The root of the problem is that poverty wages cause severe overwork. Maritza, a one-time cleaner earning poverty wages and now a manager at Clean for Good, a cleaning company which pays the Real Living Wage, recalls:  

"I went through a very difficult time in my life – having to bring up my children on my own, and earning so little money. I had to work such long hours."  

Whilst Toyin, a community organiser and child of a cleaner earning below the living wage, speaks of how their mother ‘worked two jobs, seven days a week’ simply because her ‘job does not pay enough.’ Low paid workers often work incredibly long hours to earn enough to feed their children. These long hours and overwork then get in the way of these workers flourishing in other aspects of their life. 

Such overwork compromises faith. Maritza explains that: “In this time of hardship, I lost my faith.” Toyin’s account expands on why Maritza and others have this experience.  

“The people that I work with are affected because having more than one job does not allow them to find the time to go to church or even pray.”  

For Christians, going to Church and praying underpin an individual’s faith. When poverty wages necessitate long and often unpredictable hours, they prevent people from exercising their religious belief and identity in these ways. Hence, one of the experiences of workers which led to the real living wage campaign was that overwork and Sunday working meant there was little time left for churchgoing or the other practices of faith. Aspects of life that having discretionary free times allows us to do. 

Severe overwork damages the mental health of cleaners. Toyin suggests that an inability to spend time with family and practice their religious beliefs “has affected their mental health and well-being.” Research shows how widespread this phenomenon is. 69 per cent of below living wage workers report that their pay negatively affects their anxiety. Thus, poverty wages force conditions which damage workers’ health. 

Under these conditions, workers find it difficult to make advance plans, even for events as important as their children’s birthday parties.

Conditions of poverty and overwork undermine family relationships. Maritza explains that,  

‘‘I had to work such long hours that my children saw very little of me."

Toyin fleshes this point out.  

"My mother was not paid a real living wage which meant I missed out on time with my mother which I resented as I didn’t understand her sacrifice at the time… The people that I work with are affected because having more than one job does not allow them to find the time to… provide the time, love and support to their families."  

Cleaners often work such long hours at inconvenient times of the day that they are simply unable to see their children enough to nurture that relationship. To make matters worse, these hours are often highly unpredictable. 50 per cent  of workers earning less than the real living wage receive less than a week’s notice for shifts, and 33 per cent have experienced unexpected cancellations. Under these conditions, workers find it difficult to make advance plans, even for events as important as their children’s birthday parties. It is no surprise, therefore, that 48 percent of workers earning less than the real living wage say that their wage has negatively affected their relationship with their children. Poverty wages force workers to choose between spending enough time with their children and having enough money to provide for them. 

Poverty wages erode educational outcomes for children. Toyin explains that some parents find it harder to support children in their education.  

"When I was younger, my mother worked two jobs, seven days a week which meant she was not able to help me with my schoolwork, come to school assemblies and other family needs."  

Since parental support increases the child’s educational attainment, these children are left vulnerable to worse educational outcomes. Furthermore, it forces children into unofficial caring roles. 

"There are also families where children have to care for their younger siblings, cook, clean and play the role of the parent due to their parent not being paid a living wage." 

The pressures of this role distract from a child’s education and compromises their ability to reach their full potential. Poorer educational outcomes for children living in poverty is well documented. According to the National Education Union, ‘Children accessing Free School Meals are 8% less likely to leave school with 5 A*-C GCSE grades than their wealthier peers.’ A lack of parental support and the burden of caring responsibilities are likely a contributing factor. 

Christians see how poverty wages compromise the inherent dignity of these workers by restricting their ability to flourish in faith, health, family relationships and opportunities for children. They also notice that these problems are widespread: the Resolution Foundation found in 2021 that about one in five jobs in the UK pay below the Real Living Wage. They believe that the Real Living Wage is the pragmatic way to safeguard the dignity of these workers, because it will take away the barriers to their flourishing. That is why Christians continue to campaign for the Real Living Wage, and why increasing numbers of Christian employers insist on paying fair wages. In this way, the belief that all are made in the image of God leads Christians pursue a world in which safeguards every person’s dignity and worth.  

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How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?
a pile of coins.
Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.  

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled. 

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.  

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue. 

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society? 

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play. 

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.  

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.  

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle. 

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here? 

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away. 

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.” 

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions. 

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans. 

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God. 

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system. 

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one. 

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society. 

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets. 

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.” 

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”. 

Nevertheless, he believes taxation can be used in this area to help level the playing field. 

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive). 

“You want to disincentivise the way the housing market is used for speculation,” he said. 

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.” 

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds. 

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.  

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives? 

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.  

But he adds an important caveat: “the playing field is not level. 

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.” 

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.