Credit Crunch
The British Chamber of Commerce is predicting that Britain's economy will enter a recession within the coming year. With the recent crash of yet another major bank, the prediction will likely come true.
Recently, the government in England announced that stamp duty will be axed for a year on properties costing less than £175,000 as part of a package of measures being unveiled to help the housing market. The government has said that half of all property transactions will now be exempt from stamp duty. It is an important step in making sure that public service workers such as nurses can afford to get on the property ladder. The Welsh Assembly Government has similar programmes such as a £5 million mortgage rescue scheme to be used in this financial year and an extra £30 million allocated in the social housing budget to address the issue of affordable housing. The Welsh Assembly Government has said it has set up a pilot scheme to help first time buyers. Low wages have been a major factor for newly qualified nurses inability to get on the property ladder. The Royal College of Nursing continues to fight for nurses to be paid a suitable wage for the job that they do.
Nurses have always had to contend with low pay compared to other public sector workers such as teachers and police officers. It is well known that a large number of nurses are forced to take on second jobs in order to supplement their income to make ends meet. Qualified registered nurses sign up for NHS bank work or nursing agency shifts or take jobs in shops to alleviate their cash strapped circumstances. This is in addition to the long hours that nurses already work because of staff shortages coupled with the need to meet the demands in health care provision.
Moreover, the UK is one of the most expensive places in the European Union to live and the rising cost of fuel, food prices, mortgages and utilities is taking its toll on everyone, especially nurses. For example, community nurses such as district nurses and health visitors use their cars for work in order to travel to see patients in their own home. In rural areas such as Powys and some parts of West and North Wales, a car is a necessity and public transportation is not an option. Also, for nurses who work in the city, it is not feasible for a nurse to get public transport when finishing a late shift in the middle of the night.
The fuel duty rise of two pence a litre planned for this October has been postponed until 2009. With fuel prices rising, the RCN has welcomed this, saying it is positive news for those who use their cars for work and social purposes not to be hit by yet another cost increase. Dr. Peter Carter, RCN UK Chief Executive and General Secretary had previously written to the Chancellor on this issue arguing for the planned increase not to go ahead.
In addition, all of our utility costs have increased, in some cases much more than the cost of living. Even our food,which is the most basic of needs, comes at a high price. This is especially bad news at a time when we are encouraging the nation to eat more healthily. Unfortunately, some healthier items are more expensive than other cheaper alternatives. The Royal College of Nursing clearly supports Asda Supermarkets’ campaign for a reduction in VAT on 100% fruit juices and smoothies, in an effort to encourage everyone to adopt a healthier lifestyle. For the next three weeks, the supermarket chain is decreasing the price, equivalent to the removal of VAT, of all 100% fruit juices and smoothies.
Asda has explained that it is doing this as part of its campaign against VAT laws which it says penalises people for choosing healthier options. The supermarket chain hopes this will draw attention to the inconsistencies between the government’s VAT policy and healthy eating initiatives, such as the recent “Healthy Weight, Healthy Lives” programme.
Current economic conditions still remain difficult for nurses and health care support workers. RCN members voted overwhelmingly in favour of the Government’s pay deal worth 7.99 per cent over three years. However, the RCN and other trade unions have been in discussions with government and NHS Employers over the process for re-opening talks on the NHS pay award for 2009 and 2010. The push to re-open talks has come in the light of pressure for nurses and health care assistants to cope with the increasing cost of living and the continuous rises in inflation.
The Retail Price Index (RPI) which trade unions and leading economists believe to be the most accurate measure of inflation, as it includes housing costs, has risen to five per cent which is three per cent above the Government's official target for inflation of two per cent.
If the pay review body is convinced by the evidence of the impact of changing economic factors, this, in turn, could lead to a review of the pay awards for 2009 and 2010. The RCN believes that the facts speak for themselves and that there is a clear case for review.