Since the election, the new government has come under considerable pressure to ease the cost-of-living crisis. Its removal of the winter fuel allowance and its refusal to work towards removing the two-child benefits limit has generated much criticism from poverty campaigners. The government maintains it would like to do more to help those who are struggling financially but the deficit left by the Conservative government is such that this cannot be achieved in the short or perhaps even the medium term. Finding ways to support people financially without incurring more state expenditure will be a key goal.
Flexible working is one means of doing this. Not only will this be good for employees and businesses – at no extra cost to the public purse – but it will also contribute to other social goals.
The Labour government is planning to bring in more flexible working for employees who wish it, including enabling employees to work a 38-hour week over four rather than five days. It is not proposing that work hours should reduce, although this may happen over the longer term or if it suits employees and employers when these new rights are introduced. At present, the proposal would allow for longer working days (an increase from 7.5 to 9.5 hours a day) and one additional non-working day a week.
Savings for business, increased productivity and worker satisfaction
Many occupations already work in this way, particularly in health and social care services, where some of the shifts are as long as twelve hours, or in manufacturing and construction, where the use of expensive plant needs to be maximised. The number of office or manufacturing based organisations working a four-day week is also growing. Some firms may only open for four days to save on overhead costs (security, cleaning, heating etc), while others may need to stagger the working days over a five- or seven-day week according to the needs of their customers or service users.
The proposals would most likely benefit office, retail and other workers where the traditional five-day week still operates. Not everyone will want to compress their working hours into four days and some jobs may not be suited to it. A research trial undertaken by Autonomy (a work think-tank) on a four-day week reported favourable outcomes. Both business and employers found it increased productivity along with worker satisfaction and motivation.
Savings for families, good for children and wider society
As well as potentially benefitting employers and employees, it has the potential to benefit society more widely. With a day a week’s (or even two days a week for a couple) reduced demand on nursery or after-school club places, the savings for the parent and the state are considerable. It is a very simple way to ease the cost of living for ‘hard working families’ without adding to public expenditure.
Family life should improve as parents are able to spend more time with their children, especially the under-fives. Some out of home day-care is beneficial for most young children, while too much can be harmful. If both parents can work a four-day week a child will have an extra two days a week enjoying parental rather than day care and child development will be enhanced. Ideally, this provision would be accompanied with a right to fewer working hours.
As well as supporting families and easing the cost-of-living crisis for workers, one day less commuting and buying lunches would save workers more money, and fewer cars on the road will ease congestion and reduce pollution.
Further cost-free reforms to improve working life
Labour is committed to improving workers’ rights and this measure would make a good start. But it also needs to be accompanied by other reforms. Two further reforms would improve the quality of life for all, without placing an additional burden on public expenditure.
- Employers should be prohibited from giving too short notice of shifts and work schedules. if police officers (32.4% of whom are women) know their working shifts years in advance and can plan child care around them, why can’t nurses (89% female) who are often only advised of their shifts just a couple of weeks before they are due to start. Not only does this make planning childcare almost impossible but also family time and holidays. Additionally, nursing remains one of the least flexible health specialities after maternity leave.
- The right to work from home should be extended. This would reduce the time needed for, and the costs of, commuting and would reduce pollution. It would also enable many more people to work for whom a commute is not feasible or would take up too much of wages earned. Increased work flexibility and a bias in favour of home working might also enable more people with disabilities to work. Disability benefits should be tailored to suit and make work worthwhile.
Many workers have gone without pay increases over the past few years, even while the cost of living has risen markedly. Reducing the costs and disadvantages of working is one way to improve work benefits without a need for more government funding.
