Social disadvantage is ”harming future earning potential”
Social disadvantage is hindering people's future earning potential, research has suggested.
A report by the Trades Union Congress (TUC) - which has member unions representing more than six and a half million working people - has revealed that 50 per cent of a person's likely income is determined at birth.
The TUC noted that real improvements will not be made until Britain becomes a more equal society.
Those attempting to gain a public sector job may be reassured to hear general secretary of the organisation Brendan Barber say the government was correct to identify social disadvantage as a factor which is holding people back, but since a high in 1997 inequality has now slowed.
He added: "Without the minimum wage and tax credits, inequality would have grown even more under Labour, because the incomes of the rich and super-rich continue to outpace those of the rest of us."
Equal gender pay ‘’still more than 50 years away”
It is still more than five decades away until men and women are paid on an equal footing, research has suggested.
A report published by the Chartered Management Institute (CMI) revealed that females face a 57-year wait until the money they take home matches the amount their male counterparts pocket.
The 2010 National Management Salary Survey revealed that salaries for women increased by 2.8 per cent in the last year, which was 0.5 per cent more of an increase than men received.
Some individuals in public sector jobs are set to experience a rise after the government announced in June that those working in the industry who earn less than £21,000 per annum will receive a boost of at least £250 from 2011 to 2012.
Moreover, in response to the CMI report, head of policy for the organisation Petra Wilton warned: "Girls born this year will face the probability of working for around 40 years in the shadow of unequal pay."
5% feel ”fully prepared for retirement”
Just five per cent of non-retired Brits aged less than 55 are financially prepared for when their working life ends, recent research has revealed.
Following the figures from MGM Advantage - which offers financial services and specialises in retirement income - those in public sector jobs may feel the need to act before they enter their golden years.
In 2008, similar findings were published, which showed 39 per cent of those approaching the end of their employment felt financially equipped to finish work.
Craig Fazzini-Jones, director at MGM Advantage, said the recent Retirement Nation Report results are "hugely worrying".
He added: "Part of the problem is that relatively few people seek professional advice before they retire, but it's crucial that people are extremely proactive in checking their finances at this time."
This news comes shortly after the government announced that the default retirement age was to be abolished by October 2011 with employment minister Edward Davey noting the move is in order to give workers more choice.
Chancellor: Employment growing at fastest pace for a decade
People searching for public sector jobs may be encouraged by recent comments from chancellor of the exchequer George Osborne.
The minister, speaking at Bloomberg's London offices, said employment is growing at the fastest pace for more than a decade, manufacturing output is improving and exports are recovering due to a rise in global demand.
He added: "Here in Britain we can start to be cautiously optimistic about the economic situation."
But he admitted that the country is still likely to face a "choppy" recovery and it would be expecting too much for a smooth ride after the "biggest economic crisis of our lifetimes".
Moreover, early signs are apparent that the government's attempts to lower the deficit are working, chancellor Osborne observed.
This news comes after figures from the Office for National Statistics, released earlier this month (August 11th), revealed that the unemployment rate had decreased by 49,000 in three months to June this year.
Pension system change could have long-term benefits
Plans to abolish contracting out into final salary schemes could be beneficial to those with retirement funds, according to one business expert.
Individuals in public sector jobs make up five million of the seven million members of the initiative, but Laith Khalaf, pensions analyst at Hargreaves Lansdown, admitted there might be teething problems in the short-term.
"But the payoff is it could ultimately pave the way for a simpler and higher universal state pension for all," he added.
The move may lead to a large windfall for the government initially, as the process cost Whitehall an estimated £9.5 billion in National Insurance in 2009-10, according to HMRC.
However, more state pensions would be paid in return, spread out over a number of years.
The BBC has previously noted the schemes are traditionally the best type of pension a worker can get, due to employees being paid a percentage of their salary when they retire.
