The United Nations reported that, despite being the world’s fifth-largest economy, one-fifth of the UK’s population—14 million people—lived in poverty, with 1.5 million experiencing destitution in 2018. Fast forward to 2024, and while the UK remains a wealthy nation, it continues to grapple with “unacceptably high levels of poverty,” which disproportionately impact women and individuals from minority ethnic backgrounds many of them are working and still living in poverty (JRF, 2024).

Labour came to power promising to reverse the austerity policies that hit the poorest the hardest. They vowed to improve working conditions and tackle exploitative practices like zero-hour contracts. Yet they have failed to apply supply chain ethics and the UK’s own anti-modern slavery laws to public services outsourcing. Instead of ending the outsourcing of public services, the Ministry of Justice recently announced a tendering process for court interpreting. Labour must not only stop this practice but also ensure rigorous oversight of existing outsourcing contracts till they end.

As a business owner in the UK, many of my clients require me to sign declarations stating that no exploitation occurs within my company’s work, for compliance purposes. Why is our government failing to uphold similar standards? Before the election, I raised concerns about potential exploitative outsourcing practices in the NHS with Wes Streeting, the then Shadow Secretary of State for Health and Social Care. He assured me that Labour would boost wages, make work more secure, and eliminate practices like fire-and-rehire. Yet, after the election, I received a disheartening response from the Department of Health:

“Non-NHS organisations contracted to deliver NHS services are independent and not bound to national terms and conditions like Agenda for Change. They determine pay and terms based on what is affordable within their financial models.”

This abdication of responsibility epitomises the failures to bo accountable for public service outsourcing, a policy that gained momentum under Margaret Thatcher in the late 20th century. Outsourcing funnels public funds into the profits of private companies while slashing wages, forcing workers to rely on state benefits, and undermining service quality. Worse still, it erodes the government’s capacity to manage contracts or deliver services directly, creating unhealthy dependence on profit-driven companies that jeopardises the long-term provision of essential public services (Mazzucato and Collington, 2023).

A recent example of mismanagement of public funds in outsourcing emerged during the House of Lords inquiry into court interpreting. Representatives from the Ministry of Justice revealed that in 2023 alone, over 600 court cases collapsed, wasting an estimated £6 million. This failure stemmed from the inability to secure interpreters willing to work for the extortionately low rates offered by TheBigWord, the company holding the court interpreting contract (UK Parliament, 2024). Another memorable example of the broader failures of outsourcing occurred during the London Olympics, when private security firm G4S failed to recruit and train sufficient security personnel. This shortfall necessitated the deployment of 18,200 army troops to London on short notice, underlining the risks of relying on profit-driven companies for essential services (British Forces Broadcasting Service, 2017).

Over the year, outsourcing has transformed public sector employment, driving down wages, stripping away benefits, and intensifying job insecurity. The resulting precarious employment has deepened socioeconomic inequalities and weakened trade unions (Harvey, 2005; Standing, 2023; Mazzucato and Collington, 2023).

A recent example of problematic mismanagement of public fund in outsourcing arrangement surfaced during the House of Lords inquiry into court interpreting where representatives on Ministry of Justice stated that is 2023 alone there were over 600 collapsed court cases, wasting an estimated £6 million, stemming from the failure to secure interpreters willing to work for extortionately low rates, offer by TheBigWord, the translation company holding court interpreting contract. Another striking and more memorable example of the broader failures of outsourcing occurred during the London Olympics, when private security firm G4S failed to recruit and train enough security personnel. This shortfall led to the deployment of 18,200 army troops to London on short notice, highlighting the risks of relying on profit-driven companies for essential services (British Forces Broadcasting Service, 2017).

How can we tolerate such struggle of those doing essential work such as cleaning our hospitals, caring for our children, tending to elderly and sick individuals and interpreting for people with limited English proficiency? Most of these workers come from disadvantaged backgrounds and cannot escape unfair work arrangements for better opportunities. A critical, intersectional analysis is urgently needed to address how outsourcing exacerbates systemic inequalities tied to gender, race, and other factors. Professor Fiona Williams emphasises the need to view these inequalities as complex and interlinked, warning against workers being potentially exploited by the market and disregarded by the state (Williams, 2021).

Moreover, real equity is achieved only when risks and rewards are shared fairly. Currently, companies holding public service contracts face minimal risk, securing loans and private investment while paying workers poverty wages with no job security or social protections. Taxpayers often foot the bill when these companies fail, as seen with Carillion’s collapse in 2018 (Mazzucato and Collington, 2023).

The UK cannot claim to be a tolerant, diverse society while its workforce struggles with in-work poverty, disproportionately affecting women from ethnic minorities. Addressing injustices such as the gender and ethnicity pay gaps, reproductive inequities, and the undervaluation of care work must be prioritized.

As Williams (2024) warns, public policy must consider the “necropolitics” of state decisions that determine who receives adequate care, who is left behind, and who loses their lives due to lack of services. Financial and job insecurity disproportionately affect women, limiting their ability to balance work and caregiving responsibilities. This exacerbates the care crisis and escalates child poverty.

The Covid-19 pandemic exposed and worsened existing disparities, disproportionately affecting marginalized communities. For example, Black, Asian, and Minority Ethnic (BAME) groups experienced significantly higher infection and mortality rates, as reported by Public Health England (2020).

There is no excuse for delaying action. Protecting public service workers from unfair capitalism is a moral imperative. I chose this article’s title as a tribute to Joeli Brearley, founder of Pregnant Then Screwed, for her fight against injustice faced by pregnant women. When injustices are obscene, we must not be ashamed to use bold language to fiercely demand change. Labour must act now by reviewing and overhauling public service outsourcing policies to deliver equity and justice for all.

References:

British Forces Broadcasting Service, 2017. “Troops On the Streets: A History.” Accessed 3 April 2024. https://www.forces.net/news/troops-streets-history#:~:text=The%20Armed%20Forces%20made%20up,troops%20deployed%20to%20provide%20security.

Harvey, D. 2005. A Brief History of Neoliberalism. Oxford University Press.

Mazzucato, M. and Collington, R. 2023. The Big Con: How the Consulting Industry Weakens our Businesses, Infantilizes our Governments and Warps our Economies. UK: Allen Lane.

Pregnant then Screwed. ND. https://pregnantthenscrewed.com/about-maternity-discrimination/

Public Health England (PHE). 2020. Disparities in the risk and outcomes of COVID-19. Accessed 5 April 2024. https://assets.publishing.service.gov.uk/media/5f328354d3bf7f1b12a7023a/Disparities_in_the_risk_and_outcomes_of_COVID_August_2020_update.pdf

RJF, 2024. UK Poverty 2024. Accessed 15 November 2024. https://www.jrf.org.uk/uk-poverty-2024-the-essential-guide-to-understanding-poverty-in-the-uk#_-poverty-has-increased-close-to-pre-pandemic-levels

Standing, G. 2023. The Politics of Time: Gaining Control in the Age of Uncertainty. Pelican Publishing Company.

The United Nations. 2019. Visit to the United Kingdom of Great Britain and Northern Ireland : report of the Special Rapporteur on Extreme Poverty and Human Rights. Accessed 15 November 2024. https://digitallibrary.un.org/record/3806308?v=pdf

UK Parliament. 2024. Interpreting and translation services in the courts: Ministry of Justice. accessed 5 November 2024 https://committees.parliament.uk/oralevidence/14968/html/

Williams, F. 2021. Social policy : a critical and intersectional analysis. Cambridge, UK ; Polity Press.