Construction workers under the Blue Book agreement have accepted a contractors’ offer of an additional £1 an hour pay increase in a bid to support workers with the current cost of living crisis.

The new cost of living rate will come into action from now until 30th June. After this date, workers will receive a supplementary payment of 75 pence an hour.

The pay increase has been implemented following a series of below-inflation pay rises, but is it worth it?

Industrial tensions

Ongoing local action has put pressure on employers to resolve industrial tensions and pay agreements. With several pay freezes and a lack of support amid the cost of living crisis, something had to change within the industry.

However, workers are continuing to seek further bonus payments despite the pay increase. Talks will begin later this year to review the current wage to draw up a new agreement, which will likely come into effect early next year.

Why are there disputes?

A previous pay claim was submitted to the Construction Industry Joint Council (CIJC) asking for a 10 percent pay increase, alongside improvements to sick pay and other benefits.

In 2022, the CIJC failed to make an offer that came close to what construction workers were looking for. As the industry has consistently faced an unprecedented shortage of skills, our existing workers should be seen as valuable.

Improvements need to be made to the current CIJC agreement, which sets out the minimum rates for construction workers. Rates should be set accordingly to the current rise of inflation and the highly skilled construction workforce who deserve a higher pay increase.

Tax deductibles

Construction workers in the UK are entitled to claim expenses for various items and services required for their role.

This tax relief can assist with the cost of living crisis, helping to lift some of those expenses that are adding stress and pressure to your pocket.

If you’ve had to purchase new tools for your project and your employer isn’t able to reimburse you, you could claim a tax refund for these items with your proof of purchase.

Additionally, protective clothing is essential for your safety in the workplace. If you’ve had to purchase your own PPE, you should be eligible to claim the expenses.

Has it made a difference?

The crisis has caused many other industries to offer pay rises to their employees, following the surge in energy bills, fuel and food prices.

Industries are looking to put their teams and communities first in the bid to support their employees during unprecedented times. The ongoing disputes in the construction sector however may continue, especially as the announced pay rise is set to drop down again in June.