Source · Select Committees · Business and Trade Committee
Recommendation 19
19
Rejected
Set out Fair Work Agency funding target to meet ILO inspector benchmark
Recommendation
The Committee welcomes the Government’s focus on labour market enforcement to tackle non-compliance. However, if the Fair Work Agency (FWA) is to be given new powers it will also need more resource. Efficiencies made from combining current budgets will not be enough. The Government must set out to the Committee its target for funding the FWA so that our country reaches, as a minimum, the ILO’s benchmark of one labour market inspector per 10,000 workers by the end of this Parliament. The Government should set out a strategy and a timeline for delivering this resource. (Recommendation, Paragraph 95)
Government Response Summary
The government states that while inspector numbers are important, the focus is on effective enforcement and efficient resource use, and it does not commit to the ILO benchmark or to setting out a specific funding target, strategy, or timeline for the Fair Work Agency, promising only to consider resources when producing future reports.
Government Response
Rejected
HM Government
Rejected
The Government is committed to ensuring that labour market enforcement is as effective as possible by focusing on the right balance of resources, expertise, and strategic coordination. While inspector numbers are an important consideration, the real measure of success is how well enforcement protects workers and ensures fair competition for businesses. By streamlining state enforcement efforts, we can maximise efficiency, reduce duplication, and make the best use of public money. Additionally, modern enforcement strategies –such as intelligence-led investigations and targeted interventions – allow us to focus resources where they will have the greatest impact. However, we also recognise the importance of ensuring the Fair Work Agency (FWA) has the tools it needs to do its job effectively, including having the right level of resources. The Government remains committed to strong, well-resourced enforcement that delivers real results for workers and businesses. We will closely monitor its effectiveness and consider the resources available to the FWA when producing the enforcement strategy and annual report, as this will clearly be a fundamental aspect to both.