Osborne Clarke | ‘Get Britain Working’: Labour announces its blueprint for fundamental reform

We have previously reported on the government’s commitment to its proposals in “Make Work Pay”, with a number of measures to be included in a new Employment Bill and Equality (Race and Disability) Bill announced in the King’s Speech.

The government is also pressing forward with its proposals around wider workforce issues, including the need to upskill the workforce to meet future challenges with the launch of Skills England and a “blueprint for fundamental reform” to stop “spiralling economic inactivity“.

Tackling economic equality; a move from welfare to work

The government has reported that 2.8 million people are out of work due to ill health or disability and one in eight young people are not in education, employment or work. Its long term ambition is to reach an 80% employment rate, with better quality of work and higher earnings.

To tackle this Liz Kendall, the new work and pensions secretary, has confirmed that a new government white paper “Get Britain Working” will be published soon. It will seek to address the problems of “today, tomorrow and beyond” paying attention to “the wider issues – like health, skills, childcare and transport – that determine whether people get work, stay in work and get on in work“.

The paper will build on the government’s manifesto commitments with:

• a new national jobs and career service to help get people into work and on in their work. This service will be “focused on helping people get into work and get on at work, not only monitoring and managing benefit claims” – it will also “mobilise the potential for new technologies and AI to better help people who are looking for work, or wanting to develop their careers“, as well as enhancing and improving support for employers;
• a new “joined-up” work, health and skills plans for the economically inactive, led by mayors and local areas; and
• a youth guarantee to “offer training, an apprenticeship, or help to find work” for all young people aged 18 to 21.

What does this mean for employers?

This white paper forms part of a cross-government approach to help people into work, with businesses also benefiting from the launch of Skills England, plans to tackle NHS waiting lists and the proposals included in the government’s “Make Work Pay” (many of which are expected to be included in the new Employment Bill).

The government’s focus on economic inactivity reflects increasing concerns over the impact employers and individuals are facing with the cost of living, long-term sickness and mental health. In recognition of the task ahead, the government recognises that this is a multi-generational issue with concerns around “poor mental health” in young people, the fact that many will need to take time away from work “to study, bring up a family or care for a loved one” and the risk of older workers currently in employment “falling out” due to physical health conditions.

The government’s proposals in Make Work Pay include proposals for reform to employment laws around, among other areas, carer’s leave, flexible working, parental leave, a right to disconnect and predictable working conditions – all of which will underpin its efforts to get people back into and stay in work.

While businesses wait for the detail of the Employment Bill and the changes it will bring to employment contracts, policies and working arrangements, employers should be anticipating the needs of an increasingly diverse and multi-generational workforce to ensure a supportive, productive and inclusive work environment for all.  It will be critical to ensure that equal opportunities are promoted for all employees in terms of hiring, promotions, training and development and that managers and employees have access to conflict resolution to address any generational or cultural misunderstandings. As well as routes for individuals to provide feedback (for example through anonymous staff surveys), a top-down approach, supported by training for managers, will be important to demonstrate that all voices are heard.

It will also be important to implement management training to recognise where individual needs will need particular support, for example where an employee is neurodiverse or has a mental or physical health condition which may require reasonable adjustments.

Employers should also consider what wider initiatives might be provided that support the health and wellbeing of the workforce: encouraging healthy lifestyles and providing access to mental health resources and support, recognising that different generations may face different stressors, and customised benefits, including healthcare and childcare support, appealing to various age groups.

With the government proposing a default right to flexible working, such arrangements are likely to become increasingly prevalent, such as remote working options and part-time opportunities to cater to different life stages and personal commitment.

Getting more individuals back into and staying in work will bring many benefits, but it will also pose specific challenges for employers to ensure a workplace culture where employees of all ages and backgrounds are valued and considered, with opportunities for growth and development.

Compliments of Osborne Clarke – a member of the EACCNY