Workers in Britain would be paid about £2,100 per year more on average if wages had matched a boom in company dividends handed to shareholders over the past two decades, according to a report.
Highlighting a gulf between earnings from work and company ownership, the Common Wealth thinktank said far-reaching reforms were needed to rebalance power amid rising levels of inequality.
Against a backdrop of mounting pressure on workers as wages fail to keep pace with the soaring cost of living, it urged the government to take action to increase workers’ rights and trade union negotiating strength, as well as delivering an increase in care funding and social security benefits.
It comes as ministers face growing pressure to back a windfall tax on energy producers to counteract the cost of living crisis. Following a surge in wholesale oil and gas prices exacerbated by Russia’s invasion of Ukraine, the energy firms Shell and BP are expected to report a sharp rise in profits later this week. Separate research from Common Wealth showed the two companies channelled £147bn to shareholders via dividends and share buybacks over the past decade.
The business minister, Kwasi Kwarteng, has lobbied against a windfall tax, writing to energy companies over the weekend urging them to increase investment to prevent more drastic action being taken by the cabinet.
The chancellor, Rishi Sunak, has signalled that he is considering a windfall tax if Shell, BP and other exploration companies fail to spend excess profits on developing renewable energy projects.
The shadow climate change secretary, Ed Miliband, said: “Kwasi Kwarteng‘s letter is not worth the paper it is written on for millions of families facing the cost of living crisis.
“Families want action
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