On 15 March 2023, the UK government delivered their Spring Budget for 2023. The government stated that the strategy behind the Spring Budget is to promote “long-term sustainable growth”, with a focus on four key priorities: employment, education, enterprise and everywhere.
The government website states that it will prioritise employment, “ensuring the economy has the labour supply needed to boost growth and improve living standards”, and that the “Spring Budget delivers an ambitious package to increase labour supply and ensure the UK continues to attract global talent.”
The government aims to increase labour supply among four key groups:
- Long-term sick and disabled;
- Welfare recipients;
- Older workers; and
- Parents.
So What Does This Mean for Employers?
Long-term sick and Disabled:
- As mental health and musculoskeletal (MSK) conditions were cited as the leading causes of long-term sickness, the government plans to embed tailored employment support within mental health and MSK services in England to break down barriers to work.
- The government wants to boost occupational health coverage across the UK and stated that it “will consult on increasing occupational health provision by UK employers, including regulatory options, boosting the supply of occupational health professionals, and kitemarking to indicate the quality of occupational health provision.”
- The government also plans to introduce a support programme that will match those with long-term illnesses and disabilities to existing job vacancies. Once matched, the programme aims to encourage and support by providing additional support or training where necessary.
Notably, employees are already required by law to make reasonable adjustments to ensure that workers with disabilities, or physical or mental health conditions, are not substantially disadvantaged when working.
Welfare Recipients:
- The government plans to increase work coach support for Universal Credit claimants to help them enter the workforce.
- The government will expand the Additional Jobcentre Support Pilot in England and Scotland. The government states that the “pilot will test how intensive support for a period of two weeks can further support claimants, who remain unemployed after 13 and 26 weeks into their Universal Credit claim or on low earnings, into work.
The announcement encourages employers to be conscious of the barriers for many people attempting to enter the workforce.
Older Workers:
- Given the UK’s aging population, the government has implemented “returnerships” to encourage people over the age of 50 to return to the workforce.
- “Returnerships” will enhance the government’s extant skills programmes and promote accelerated apprenticeship for individuals, Sector-Based Work Academy Programme placements and Skills Bootcamps to those over 50.
- The government stated that it also aims to enhance individuals’ understanding of their long-term financial resilience. To achieve this, the government will strengthen the digital strand of the Midlife MOT to make sure that individuals understand their career, health and finances to create a financially secure retirement.
The new announcement places a fresh obligation on employers to be mindful of their reluctance to hire individuals over the age of 50. Employers must consider the possibility for age discrimination claims as well as the need to reevaluate their pension plans.
Parents:
- The government announced that it would give “30 hours free childcare for working parents and support for childcare providers”.
- The timeline for the proposed change is as follows:
- April 2024 – 15 hours free childcare per week for working parents of 2-year-olds;
- September 2024 – Further extended to working parents of 9-month to 2-year-olds;
- September 2025 – 30 hours of free childcare per week to all eligible working parents of children aged 9 months up to 3 years.
The announcement has no immediate effect in employers but it does act as a catalyst for making employers think about their flexible working policies and the diversification of their workforce. Full guidance and updates on the Spring budget 2023 can be found at gov.uk.