The Economic Inequality Hit List

No one policy can single-handedly beat inequality: the roots of the problem extend into the very structure of our economy. The solution will instead require ambitious, concerted action on several fronts. Our proposals focus on five major policy areas that, targeted together, could help reverse the vicious cycle.

1. MAKE HIGH-QUALITY CHILDCARE AVAILABLE TO ALL

Overhauling the system so that good childcare is affordable to all would help address unequal starting points and lay the foundations for a more equal society. NEF proposes state support to cap the costs of care at 15% family income, and a vast improvement in the pay, working conditions, training and status of childcare workers. More about the feasibility and cost of this in NEF’s recent report, The value of childcare.

2. TACKLE POLARISED PAY

There are plenty of places they could start: raising the minimum wage; requiring companies to publish the difference between the highest and lowest salaries they pay out; introducing pay ratios; and restoring the bargaining power of workers through embedding collective voice in the workplace. The opportunity exists for the public sector to lead the way, as spelled out in our recent report – Raising the benchmark.

3. CREATE GOOD JOBS AROUND THE COUNTRY

NEF has previously called on the government to extend the mandate to not only boost lending to small and medium businesses, but ensure these businesses are capable of delivering well-paid, rewarding and environmentally viable jobs around the country.

4. TRANSFORM JOBS INTO CAREERS WITH BETTER TRAINING

We need a major investment drive in training and skills development, at all levels of industry from junior to management (which the UK scores famously poorly on). This could involve promoting pooled training investment by sector and channelling state support towards apprenticeships that lead to progression.

5. FAIRER TAXES

Policy makers can no longer claim that there is little they can do to address growing income and wealth divides. Our report, produced in partnership with Friedrich-Ebert-Stiftung London, provides a menu of policies that the government could apply – some of which would cost very little. Political will is now the only barrier to action.

Source:

http://neweconomics.org/2014/07/this-is-how-we-solve-economic-inequality/