We all did it, didn't we?
We stood outside our homes and clapped every Thursday at 20:00. Our chests puffed out in a mass form of tokenism, to suggest our solidarity for those brave people who put others before themselves. The NHS and other emergency services dealt with the front line horrors of the pandemic. Putting themselves at heightened risk often without adequate PPE, working round the clock with little or no respite in truly harrowing environments.
We can all think back to those uncertain times, when we arrogantly thought we'd shown our gratitude for their sacrifice by merely clapping. A round of applause would surely suffice? For the thousands of brave people who were ready to serve at our darkest hour since the 1940's.
One would expect following their demonstration of devotion, duty and care, we might have given them a little more gratitude. Turns out it is simply a lot easier to just clap, than actually do something of any real significance. The treatment of key workers has been farcical since the height of the pandemic. Strikes over pay and working conditions, set to a backdrop of the cost of living crisis have made debate highly politicised.
Political leanings aside, I think every citizen and politician would want to see the key workers have a better quality of life and feel truly appreciated. The arguments centre on a lack of fiscal resource readily available to compensate our key workers. But, are there alternatives to cold cash that we could be doing instead?
One of the main issues is key worker housing, and more precisely affordable housing for key workers. Looking at London as an example, there are 1 million key workers supporting a population of 9 million people. Concerningly, 62% of London's key workers are looking for jobs outside of London due to the high cost of housing. Currently 54% of London's key workers live outside of London as a result of this cost barrier. Even looking away from the most costly Central London areas, key workers typically use as much as 60% of their salaries towards housing.
Real time wage stagnation coupled with high inflation has created the perfect storm.
The push to more affordable suburban locations has a detrimental impact on the quality of lives of commuting key workers. The last thing a tired nurse wants to do after a 12 hour shift is take a train journey requiring two changes and a bus ride home.
In London 11.6% of the average workers income is spent on commuting, with a direct link between longer daily commutes and lower life satisfaction. An average key worker commutes 1.3 hours per day, or 20 days per year. This equates to 103 million days when multiplied by London working population. At a time when we desperately need to address our National levels of productivity, stats like this are shocking.
According to the UK Governments "Commuting and Personal Well Being Report", commuters have a lower sense that what they do is worthwhile. They also suffer from elevated scores of anxiety and lower scores of happiness and life satisfaction. This only exacerbates the likelihood of key workers leaving their professions to find more accessible, or better paid jobs. There are skill shortages in many different industries, but putting highly skilled professional jobs at risk due to commuting is further food for thought.
The impact is being felt within our communities. When key workers can no longer afford to live in the area, what does that mean for the cohesion of that neighborhood? 56% of Police live outside of London, they are typically working in areas that they have little or no connection to. The knock-on effect creates a greater discourse with the communities they serve. The well documented mistrust between many communities within London and the Met could be partially impacted by this lack of familiarity. Afterall, familiarity is crucial in building trust.
So what's the answer? If we want more productive key workers in our workforce, and in turn more balanced communities, we need to be creating affordable homes for key workers close to their employment hubs.
This requires greater levels of Public and Private sector cooperation. However, to support such cooperation, a strong political foundation is needed. A strategically aligned cross party committee without political bias focusing on unlocking productivity and growth is vital. We often hear politicians talk of putting the needs of the Nation before the Party, but more often than not these statements are nothing more than sound bites.
Could there be some low hanging fruit for politicians to latch onto, that unlocks key workers housing in the areas they serve? There are multiple ways that the Public sector could use its considerable holdings and leverage in conjunction with Private sector skills and capital to unlock vast opportunities.
Since 2021 key workers have been able to benefit from discounts for new homes, with as much as 30% off market value for a key worker first time buyer. This discount will then be passed on to the incoming purchaser when the property is put up for sale. Meaning these homes will always be sold below market value. Good for key workers and local people.
This is of course very welcome news. However, more can still be done. With the continued lack of housing supply putting pressure in areas where homes are needed most, we simply need to be building more. It is with a sense of hope, although through a slightly sinical lens, that many within the industry have viewed Labour's pledge to unlock housing delivery.
With a staggeringly large majority in parliament, has there ever been a better time for a Government to force through their promises? My fear is that whilst there is a considerable majority, it is far less impressive when compared against the popular vote. Will the pressures of maintaining their grasp for a second term mean Labour shy away from those contentious decisions? Listening to Sir Keir speak outside Number 10's famous black door suggests he would not be put off making such tough decisions. But, to paraphrase part of his speech "judge me by my actions not words". Only time will tell if he sticks to this pledge.