Select Committee · Business and Trade Committee

Post-pandemic economic growth: UK labour markets

Status: Closed Opened: 27 May 2022 Closed: 11 Sep 2023 23 recommendations 18 conclusions 1 report

The Business, Energy and Industrial Strategy (BEIS) Committee is launching an inquiry into the UK Labour Market. This next strand of the Committee’s overarching Post-Pandemic Economic Growth inquiry, launched in June 2020, will also build on the work of the Committee’s major inquiry into the impact of coronavirus on businesses and workers. The Committee wishes …

Clear

Reports

1 report
Title HC No. Published Items Response
Tenth Report - Post-pandemic economic growth: UK labour mar… HC 306 21 Apr 2023 41 Responded

Recommendations & Conclusions

22 items
3 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Workplace implementation of AI and automation requires partnership with workers and trade unions.

Artificial intelligence and automation are already established in many workplaces, and they have many benefits in improving productivity and consistency of output. They are here to stay. We therefore welcome the general recognition that they should not be resisted or perceived solely as a threat to jobs. But we do …

Government response. The government details its commitment to developing digital skills across the UK through initiatives like the UK Digital Strategy and reforms to the adult digital offer, and highlights the role of public libraries in digital inclusion. However, it does not …
Department for Business and Trade
4 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Mandate impact assessments by businesses and consultation rights for workers on new workplace technologies.

We call on the Government to introduce, whether by statute in the Data Protection and Digital Information (No. 2) Bill, or by other means, a requirement a) on businesses to conduct impact assessments to understand the scope and consequences of the use of new technologies in the work place; and …

Government response. The government response focuses on the lack of private investment in workplace training and reskilling, outlining government actions on tax frameworks and skills system accessibility, and announcing guidance for businesses on AI skills to be published this summer. It does …
Department for Business and Trade
6 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Significant lack of investment in workplace training and reskilling remains concerning.

We note with concern that there is a lack of investment in workplace training and reskilling. We therefore ask the Department to consult with business on the reasons for such lack of investment and consider what incentives would increase investment in workplace training.

Government response. The government response discusses the use of computer evidence in criminal and civil proceedings, Common Law rules, and the Horizon case, stating that the government is not minded to amend related statutory provisions or rules. This response is entirely unrelated …
Department for Business and Trade
7 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Lifelong Loan Entitlement demonstrates transformative potential for retraining and upskilling.

We agree that the proposed Lifelong Loan Entitlement has the potential to be “transformative” in encouraging retraining and upskilling and ask the Government to conduct a review of the scheme one year after its commencement and to report its findings to this Committee.

Government response. The government's response discusses AI regulation capabilities and central monitoring functions, completely unrelated to the Lifelong Loan Entitlement review requested by the Committee.
Department for Business and Trade
8 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Government urged to update thinking on computer evidence in legal proceedings.

We ask the Government for an update on its thinking in relation to the use of computer evidence in criminal and/or civil proceedings and to prioritise this area of work at the Law Commission if it has not already done so.

Government response. The government's response focuses on the ICO's draft guidance on workplace monitoring and the EHRC's work on human rights and new technology, rather than addressing computer evidence in general criminal/civil proceedings or prioritising it at the Law Commission.
Department for Business and Trade
10 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Evaluate whether existing budgets can fund new AI regulation expertise without compromising other functions.

We question, however, whether existing regulators have the expertise to perform the functions proposed in the recent White Paper on regulation of AI. If regulators will need to recruit additional staff with such expertise, the Government should consider carefully whether they can do so from existing budgets without compromising other …

Government response. The government describes existing AI initiatives and states the Director of Labour Market Enforcement will consider AI threats, explicitly referring the specific recommendation for budget consideration to the DLME rather than committing to direct government action.
Department for Business and Trade
11 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Regulators expected to detail AI capacity, expertise, and resource requirements to Committee.

We ask each of the regulators referred to by the Government in its recent White Paper to write to this Committee setting out what capacity, expertise and established policy it has in respect of the application of AI in the workplace and to set out what additional resources are required …

Government response. The government's response discusses the Protection from Redundancy (Pregnancy and Family Leave) Act and ongoing work on maternity discrimination data, completely ignoring the recommendation for AI regulators to report their capacity and resource needs.
Department for Business and Trade
12 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Technology and AI in the workplace offer significant potential for economic growth and upskilling.

The use of technology and automation in the workplace has enormous potential for improving economic productivity, increasing wages and creating new goods and services for domestic use and export. As we live and work for longer, the use of AI and automation can support how individuals and society adjust to …

Government response. The government's response details the evaluation of the Shared Parental Leave scheme, its take-up rates, and an online planning tool, which is entirely unrelated to the committee's conclusion on AI, automation, and workforce upskilling.
Department for Business and Trade
13 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Government expected to consult on an enforceable code of practice for workplace surveillance technology.

However, there is a significant risk from the lack of attention on the unwelcome or unintended consequences of the use of technology and automation in the workplace, whether that is in the warehouse or in a worker’s home. Surveillance in the workplace may have value if it prevents malpractice and …

Government response. The government's response details childcare reforms and new parental/carer protections enacted through recent legislation, completely ignoring the recommendation to consult on an enforceable code of practice for workplace surveillance technology.
Department for Business and Trade
14 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Establish a taskforce to assess workplace technology implications and labour law enforcement effectiveness.

We recommend that a taskforce of relevant enforcement bodies be established, alongside the Centre for Data Ethics and Innovation and the Trades Union Congress, to assess the implications of technology in the workplace, to consider whether enforcement of labour laws is effective, and to make recommendations on whether further legislation …

Government response. The government's response highlights existing workers' rights and upcoming flexible working legislation, as well as new guidance on employment status. However, it does not commit to establishing the recommended taskforce to assess technology's implications for workplace labour laws.
Department for Business and Trade
15 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Commission new research to assess effectiveness of laws protecting pregnant women from redundancy.

There is evidence to suggest that we cannot be complacent about the effectiveness of existing law in protecting women who are pregnant from redundancy, or who are on maternity leave, or who return to work after pregnancy. We welcome the Protection from Redundancy (Pregnancy and Family Leave) Bill as a …

Government response. The government's response outlines its support for the Workers (Predictable Terms and Conditions) Bill and discusses the utility of zero-hours contracts, but it does not address the recommendation to commission research on maternity discrimination.
Department for Business and Trade
16 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Government invited to confirm Shared Parental Leave scheme evaluation status and future take-up plans.

We invite the Government to confirm whether any evaluation of the Shared Parental Leave scheme is still active, and to set out what plans it has to increase take-up.

Government response. The government's response details a call for evidence and subsequent consultation on regulating umbrella companies to address non-compliance, entirely unrelated to the Shared Parental Leave scheme.
Department for Business and Trade
17 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Government asked to consult on incentives for parents and workplace protections to support careers.

We note that many parents are disincentivised at work from having children, at a time when the country needs more young people to work and pay taxes to cover the costs of our ageing population. We therefore ask the Government to consult on what more can be done to create …

Government response. The government's response outlines employer duties under health and safety legislation, providing guidance for managing shift workers, which is unrelated to the recommendation to consult on incentivizing parents to have children and protecting their careers.
Department for Business and Trade
19 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Extend Workers Bill provisions to include secure contracts, schedule notice, and cancelled shift compensation.

We also agree with the Joseph Rowntree Foundation that policy solutions are required to ensure more, good-quality flexible job opportunities are available for workers on low pay. We note the Government’s support for the Workers (Predictable Terms and Conditions) Bill, but we recommend that the Government extend the provisions of …

Government response. The government's response focuses on its actions to deter 'fire and rehire' practices, including publishing a draft statutory code of practice for consultation, but does not address the committee's specific recommendations to extend the Workers (Predictable Terms and Conditions) Bill.
Department for Business and Trade
23 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Government requested to update Committee on specific past labour practice commitments

We ask the Government to update the Committee on the status of each of the commitments made by the then Secretary for Transport, Rt Hon. Grant Shapps MP: • HMRC to dedicate significant resource to check that all UK ferry operators are compliant with the national minimum wage; • Maritime …

Government response. The government states commitment to workers’ rights but cites parliamentary time limits for substantial changes like a Single Enforcement Body. It provides general figures on investment and staffing for existing labour market enforcement bodies but does not specifically update on …
Department for Business and Trade
25 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Establish a single labour market enforcement body combining existing agencies for clarity

We believe that the Government should proceed with the establishment of a single enforcement body, bringing together the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and the National Minimum Wage Team. We believe that a single organisation would provide clarity for those most in need and would …

Government response. The government states it is reviewing the creation of a Single Enforcement Body due to limits on parliamentary time, while committing to continue investing in existing labour market enforcement bodies and supporting their collaboration.
Department for Business and Trade
27 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Committee requests confirmation of current inspector numbers for specific labour enforcement bodies

We ask the Government to confirm to the Committee the current number of inspectors employed in the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and the National Minimum Wage Team within His Majesty’s Revenue and Customs. (Paragraph 152) Post-pandemic economic growth: UK labour markets 69

Government response. The government's response discusses the Retained EU Law Bill and ongoing consultations to simplify Working Time Regulations and holiday pay calculations, but it does not provide the requested current number of inspectors in the Employment Agency Standards Inspectorate, GLAA, or …
Department for Business and Trade
28 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Publish Ministry of Justice action plan on clearing employment tribunal backlog and resourcing enforcement

While employment tribunals are backlogged, and awards are not being paid, workers are being prevented from exercising their rights effectively. We commend the Government for providing resources specifically to help clear the backlog. In the meantime, we ask the Ministry of Justice to set out an action plan on clearing …

Government response. The government's response addresses a recommendation regarding menopause leave policy, stating it does not believe a specific policy is necessary, but this response is entirely unrelated to the committee's recommendation about Employment Tribunal backlogs, action plans, or time limits.
Department for Business and Trade
29 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Careful review needed for employment regulations if Retained EU Law Bill receives Royal Assent

If the Retained EU Law (Revocation and Reform) Bill receives Royal Assent, a substantial body of regulations contained within EU retained law and covering employment standards and rights will cease to apply in the UK unless specifically preserved in some form. Great care will need to be taken in reviewing …

Government response. The government welcomes acknowledgement of its support for the Employment Relations (Flexible Working) Bill and intends to make the right to request flexible working apply from the first day of employment, but this response is unrelated to the committee's conclusion …
Department for Business and Trade
31 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Mandate government presentation of notices and drafts to committees for scrutiny of retained EU law.

To facilitate this scrutiny the Bill should ensure that the Government must present to the committee a notice of any provision which it intends should expire, together with a memorandum of its reasons and an impact assessment in time to allow consideration before sunset. Where the Government intends to incorporate …

Government response. The government's response details DWP projects on updating labour market evidence, moving Jobcentre services online, and initiatives for older workers and menopause employment, but entirely fails to address the committee's specific recommendations regarding the scrutiny process and reporting requirements for …
Department for Business and Trade
32 Recommendation Tenth Report - Post-pandemic economic g… Deferred

Develop and pilot a specific 'menopause leave' policy with a large public sector employer.

We endorse and support the recommendation by the Women and Equalities Committee that the Government should develop and pilot a specific ‘menopause leave’ policy with a large public sector employer.

Government response. The government's response details the success of Automatic Enrolment for pensions and its ambition to expand it to younger workers and lower earners, noting its support for a Private Members' Bill to achieve this, but it completely ignores the committee's …
Department for Business and Trade
34 Conclusion Tenth Report - Post-pandemic economic g… Deferred

Jobcentres lack adequate mandate and resources for employment support, especially for over-50s workers.

We observe that jobcentres are not currently mandated or resourced to provide the most appropriate employment help and support services to many workers, not least to the over-50s seeking to return to the workforce.

Government response. The government response highlights public sector apprenticeships and Skills Bootcamps as ways to build talent pipelines and address skills needs. It does not directly address the observation regarding the mandate or resourcing of jobcentres for supporting over-50s.
Department for Business and Trade

Oral evidence sessions

5 sessions
Date Witnesses
21 Feb 2023 Kevin Hollinrake MP · Department for Business and Trade, Lucy Standing · Bravestarts, Mike Warren · Department for Business and Trade, Tim Balcon · Construction Industry Training Board, Tony Wilson · Institute for Employment Studies View ↗
10 Jan 2023 Joeli Brearley · Pregnant Then Screwed, Kate Dearden · Community Trade Union, Lizzie Penny · Workstyle Revolution, Philippa Childs · Prospect Union, Professor Keith Ewing · Institute of Employment Rights, Sarah Douglas · Liminal Space View ↗
29 Nov 2022 Hannah Reed · Unite Union, Jennifer Sole · Employment Lawyers Association (ELA), Margaret Beels · Department for Business and Trade, Ms Alexandra Hall-Chen · Institute of Directors View ↗
15 Nov 2022 Andrew Pakes · Prospect Union, Anna Thomas · Institute for the Future of Work, Brian Palmer · Amazon, Carly Kind · Ada Lovelace Institute, Charlotte Holloway · Zoom, Laurence Turner · GMB, Neil Ross · techUK, Tania Bowers · Association of Professional Staffing Companies (APSCO) View ↗
19 Jul 2022 David Fry · Department for Business, Energy & Industrial Strategy, Frances O'Grady · Trade Union Congress (TUC), Jane Gratton · British Chambers of Commerce, Matthew Percival · Confederation of British Industry (CBI), Mike Keoghan · Office for National Statistics, Ms Claire Tunley · Financial Services Skills Commission, Neil Carberry · Recruitment and Employment Confederation, Stephen Phipson CBE · Make UK View ↗

Correspondence

3 letters
DateDirectionTitle
18 Apr 2023 To cttee Letter from the Chair to Amazon relating to AI technology in the workplace, 24 …
18 Apr 2023 To cttee Letter from Amazon to the Chair relating to AI technology in the workplace, 17 …
10 Jan 2023 To cttee Letter from BEIS Chair to Amazon on AI in the workplace, 10 January 2023