We teamed up with aviation trade unions to tell the government to bail out people, not planes
Today, we did something groundbreaking. Alongside trade unions representing workers across the aviation sector, we came up with a ready-to-go proposal for any airline bailouts to protect workers and the climate, not company profits. Our report sets out how any bailouts should be designed to protect workers’ livelihoods during this crisis period, while also allowing them to retrain to enter lower-carbon sectors (such as clean energy) as levels of flying decrease to protect the climate. We’re not simply talking about a just transition (how we can cut emissions while protecting workers) —we’re getting trade unions on board and figuring out how to put this principle into practice.
We don’t think that there’s a conflict between protecting the wellbeing of people during the Covid-19 crisis, and taking the urgent action we need to tackle the climate emergency. If we’re going to build a better future, we need to do both, and now’s the time to get on with it. At the moment, the government is channelling huge amounts of public money towards crisis-hit businesses, as well as thinking about a big stimulus programme to help the economy recover. This is a crucial opportunity to make sure huge amounts of public money go to what really matters: protecting people and the climate.
We just can’t afford to waste more money on supporting corporations that damage the environment and undermine people’s welfare. That’s why we’re telling the government that, if they decide to give airlines additional support, they need to provide a parachute for workers, not a bailout for bosses. We also need regulations to force airlines to cut their emissions and ensure they pay their fair share of tax.
Working with the New Economics Foundation, we looked at how much public money airlines were getting even before this crisis hit. And brace yourself—it’s a lot! UK taxpayers have been subsidising airlines to the tune of £7bn per year, because the government didn’t make them pay VAT or fuel tax (taxes that the rest of us pay every day).
£7bn is a lot of money, but what does it actually mean?
During this crisis, people have been suffering a lot. It’s really brought home how much we all rely on the NHS and other public services, and how important it is to have a warm and secure home. What would it look like if we spent £7bn on those things instead?
Passengers on UK trains pay £10bn each year for tickets. Instead of giving airlines a handout, we could have used this money to cut our train ticket prices by two-thirds. Or we could have given the NHS staff who have worked so hard and saved so many lives a much better pay deal. Their most recent pay rise was just £4.2bn over three years, five times less than the amounts given to airlines each year. Or, at a rate of around £17k to retrofit a standard house to improve its energy efficiency, we could have made sure 400,000 houses per year were properly insulated to keep people warm and healthy.
To recover from Covid-19, and avoid worsening the gathering storms of the climate crisis, we simply have to rethink how public money is used. No longer can it prop up the profits of polluting companies, jeopardising everyone’s future. Instead, we need to find ways to support people through coronavirus alongside tackling the climate and nature emergencies. That’s why we need the government to support aviation workers now, and set the industry on a new course for tomorrow.
