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Tenth Report - Post-pandemic economic growth: UK labour markets

Business and Trade Committee HC 306 Published 21 April 2023
Report Status
Government responded
Conclusions & Recommendations
41 items (23 recs)
Government Response
AI assessment · 41 of 41 classified
Accepted 10
Acknowledged 5
Deferred 22
Not Addressed 1
Rejected 3
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Recommendations

23 results
4 Deferred
Para 39

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

Recommendation
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 … Read more
Government Response Summary
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 not address the recommendation to introduce requirements for impact assessments or worker consultation and notification regarding new workplace technologies, particularly surveillance.
Department for Business and Trade
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5 Accepted

Bring forward a new data poverty and digital skills strategy for worker support.

Recommendation
It has yet to be seen what effect the Science and Technology Framework recently announced by the Government will have on digital skills development. We call on the Government to bring forward a new data poverty and digital skills strategy … Read more
Government Response Summary
The government commits to delivering the Lifelong Loan Entitlement (LLE) from academic year 2025/26, providing individuals with a loan entitlement for post-18 education. This will include phased modular funding initially targeting Higher Technical Qualifications and other technical qualifications at levels 4 and 5, with an intention to expand to Level 6 modules from 2027, to support digital skills development.
Department for Business and Trade
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10 Deferred
Para 82

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

Recommendation
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 … Read more
Government Response Summary
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
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14 Deferred

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

Recommendation
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 … Read more
Government Response Summary
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
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15 Deferred
Para 103

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

Recommendation
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 … Read more
Government Response Summary
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
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18 Accepted
Para 122

Reconsider need for Employment Bill to create new flexible work constructions with appropriate worker rights.

Recommendation
We conclude that the outdated legal construction of work—namely full or part-time work—is preventing many people who wish to be economically active from being so. For many workers who do work more flexibly, or on a freelance basis, they are … Read more
Government Response Summary
The government agrees on the importance of flexible work and points to advice published by its Flexible Working Taskforce in December 2021 on good practice, but does not commit to reconsidering an Employment Bill or creating new legal constructions of work.
Department for Business and Trade
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19 Deferred

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

Recommendation
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, … Read more
Government Response Summary
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
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20 Rejected
Para 127

Set out Government plans for statutory protection against unscrupulous umbrella company practices

Recommendation
The actions of unscrupulous umbrella companies are depriving workers of rights and in some cases remuneration, and they are damaging the reputation of umbrella companies as a whole. There is widespread agreement that the Government should act to provide statutory … Read more
Government Response Summary
The government rejects the committee's characterisation of enforcement, stating it does not agree and detailing existing HMRC minimum wage investigations and increased investment in enforcement bodies, arguing that the UK already has a robust system for enforcing employment rights.
Department for Business and Trade
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21 Accepted
Para 130

Commission an investigation into the health and safety implications of night-time working for workers

Recommendation
We believe that the Government should take more of a lead in providing protection for workers from any damaging effects from night-time working. As a first step, we recommend that the Government should commission an investigation into the health and … Read more
Government Response Summary
The government recognizes the potential impacts of night-time and shift work and notes that HSE provides guidance, but has no current plans to commission a specific investigation.
Department for Business and Trade
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22 Acknowledged
Para 135

Establish mechanisms to detect threats to home workers from unreasonable employer expectations

Recommendation
We are not wholly persuaded that there is currently a need for immediate action to establish a statutory “right to disconnect”. But the Government should ensure that mechanisms and processes are in place to detect any significant threat to home … Read more
Government Response Summary
The government recognizes concerns about the blurring of boundaries between work and home, notes employer responsibilities, and will continue to monitor international approaches without introducing a statutory ‘right to disconnect’.
Department for Business and Trade
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25 Deferred
Para 148

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

Recommendation
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 … Read more
Government Response Summary
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
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26 Not Addressed
Para 151

Commit to a long-term financial plan for labour enforcement bodies meeting ILO minimum resourcing

Recommendation
We call on the Government to commit to a long-term financial plan with the new single enforcement body (or existing bodies if it declines the opportunity to create a single enforcement body) to ensure that it is resourced to at … Read more
Government Response Summary
The government is reviewing the creation of a Single Enforcement Body and highlights its continued investment in existing enforcement bodies, noting past funding increases and current staffing levels, but does not commit to a specific long-term financial plan as requested.
Department for Business and Trade
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28 Deferred
Para 157

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

Recommendation
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 … Read more
Government Response Summary
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
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30 Rejected
Para 161

Amend the Bill to ensure committee examination of retained EU work and employment law regulations.

Recommendation
We recommend that the Bill should be amended to ensure that within a given timeframe a committee also examines any regulations which are part of retained EU law and which govern UK law relating to work, including workplace standards and … Read more
Government Response Summary
The government has replaced the sunset clause in the Retained EU Law Bill with a list of specific revocations and intends to retain powers to amend more complex regulations after its own assessment and consultation, without committing to the recommended amendment for committee examination.
Department for Business and Trade
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31 Deferred

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

Recommendation
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 … Read more
Government Response Summary
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 the Retained EU Law Bill.
Department for Business and Trade
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32 Deferred
Para 189

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

Recommendation
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 Summary
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 recommendation regarding a menopause leave policy.
Department for Business and Trade
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33 Accepted
Para 197

Urge more employers to specify flexible working suitability in all job vacancy advertisements.

Recommendation
We welcome the Government’s support for the Employment Relations (Flexible Working) Bill, we reiterate what we have said earlier in this report that a right to request flexible working is a right to decline. We urge more employers to specify, … Read more
Government Response Summary
The government response details existing and planned programmes like Returnerships, accelerated apprenticeships, and Skills Bootcamps aimed at supporting adults over 50 re-entering the workforce, and highlights the role of the National Careers Service. It does not address the specific recommendation to urge employers to specify flexible working in job advertisements.
Department for Business and Trade
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35 Accepted
Para 203

Conduct a review into jobcentre reform and alternative employment services for over-50s workers.

Recommendation
We recommend that the Government conducts a review into the future reform of jobcentres and to assess whether a public employment service offers better solutions in alternative settings (as well as online) that will improve the accessibility and quality of … Read more
Government Response Summary
The government states it is promoting returnerships pathways (SWAPs, skills bootcamps, apprenticeships) for the over 50s through Jobcentre Plus and Work Coaches, and will monitor uptake. It does not commit to conducting a review into the future reform of jobcentres or alternative settings for employment advice.
Department for Business and Trade
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36 Accepted
Para 204

Consider a dedicated national jobs service resource to support older people finding employment opportunities.

Recommendation
It is clear that to succeed in retaining or re-integrating people aged over 50 in the workforce, there needs to be a better understanding of what that age cohort wants from work. We recommend that the Government considers a dedicated … Read more
Government Response Summary
The government states it is updating its labour market evidence base and exploring online service delivery, while also highlighting its existing '50PLUS Choices' offer, Business Champion for Older Workers, and Menopause Employment Champion that already provide support for older workers.
Department for Business and Trade
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38 Accepted
Para 209

Mid-life MOT expansion welcomed, stressing importance of financial and health reality checks.

Recommendation
We welcome the expansion of the mid-life MOT. We agree that it is important that people in their 40s and 50s should get a reality check on their finances and health to help them make better-informed decisions about their next … Read more
Government Response Summary
The government highlights the success of Automatic Enrolment in increasing pension saving, including for young people, and states its ambition to expand the framework for 18-21-year-olds through legislative support for a Private Members' Bill, rather than creating a new 'mid-life MOT' style scheme.
Department for Business and Trade
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39 Accepted
Para 213

Effective returnerships for older workers require tailored training, incentives, transparency and flexible working.

Recommendation
If returnerships are to attract older workers and to be effective in bringing them back into the workforce, they will need to offer a decent package of training. They will need to value and recognise the skills that older workers … Read more
Government Response Summary
The government states that returnerships, comprising apprenticeships, skills bootcamps, and sector-based work academies, already offer flexible, accelerated, and sector-based training options. It also highlights the National Careers Service for career support, describing how existing provisions align with some recommended effectiveness criteria.
Department for Business and Trade
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40 Accepted
Para 214

Offer returnerships across all Government departments and the wider public sector.

Recommendation
We recommend that Government departments, and the wider public sector, lead from the front on the returnership initiative. Offering returnerships in the Civil Service, in the NHS and in education, for example, will give the private sector confidence that it … Read more
Government Response Summary
The government highlights that apprenticeships and Skills Bootcamps already support older workers in the public sector, noting year-on-year increases in apprenticeships and ongoing work with employers to utilise these training options, without committing to a new initiative explicitly called 'returnerships' for public sector leadership.
Department for Business and Trade
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41 Acknowledged

Returnerships offer valuable opportunities for workers of all ages requiring future evaluation.

Recommendation
We consider that such a process could be valuable for workers of all ages and that a review is conducted one year following implementation of returnships to evaluate their benefit more widely. (Paragraph 215) 72 Post-pandemic economic growth: UK labour … Read more
Government Response Summary
The government states it is promoting returnership pathways through various campaigns and Jobcentre Plus, and will continue to monitor the uptake of apprenticeships and related programmes, but does not explicitly commit to conducting a formal review of returnships one year after implementation.
Department for Business and Trade
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Conclusions (18)

Observations and findings
1 Conclusion Rejected
Ministerial responsibility for labour market policy is fragmented across Whitehall departments. We therefore call on the Government to consider the following: a) establish a Ministry of Labour b) appoint a new Minister of State for Labour in the Cabinet Office with the authority to convene and coordinate labour market policy …
Government Response Summary
The government rejects the recommendation, stating that new departmental structures established in February 2023 (including the Department for Business and Trade) are considered effective for labour market policy and delivery. It explicitly states it does not feel it necessary to further alter the machinery of government.
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2 Conclusion Acknowledged
Para 27
We note that dedicated support is needed to help business owners and leaders understand what technologies are available, how they might be best used within their businesses and how to integrate those technologies and train workers to use them.
Government Response Summary
The government acknowledges the benefits and risks of new technologies in the workplace and details existing and forthcoming regulatory frameworks, such as the Data Protection and Digital Information Bill and its AI white paper, which aim to provide safeguards. However, it does not commit to specific actions to provide the 'dedicated support' for business owners to understand and integrate new technologies that the committee noted was needed.
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3 Conclusion Deferred
Para 38
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 Summary
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 directly address the committee's conclusion that new technologies should be implemented in partnership with workers and trade unions.
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6 Conclusion Deferred
Para 51
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 Summary
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 to the committee's recommendation regarding investment in workplace training and reskilling.
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7 Conclusion Deferred
Para 52
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 Summary
The government's response discusses AI regulation capabilities and central monitoring functions, completely unrelated to the Lifelong Loan Entitlement review requested by the Committee.
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8 Conclusion Deferred
Para 74
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 Summary
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.
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9 Conclusion Acknowledged
Para 81
Policy responsibility within Government for the governance of artificial technology has passed to the Department for Science, Innovation and Technology. We note that the Science and Technology Committee is in the midst of an inquiry into the governance of artificial intelligence. We therefore draw to the attention of that Committee …
Government Response Summary
The government acknowledges the policy responsibility transfer and draws the Committee's evidence to the attention of the Science and Technology Committee.
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11 Conclusion Deferred
Para 83
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 Summary
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.
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12 Conclusion Deferred
Para 84
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 Summary
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.
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13 Conclusion Deferred
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 Summary
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.
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16 Conclusion Deferred
Para 108
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 Summary
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.
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17 Conclusion Deferred
Para 109
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 Summary
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.
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23 Conclusion Deferred
Para 141
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 Summary
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 the three commitments from the former Secretary for Transport as requested.
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24 Conclusion Accepted
Para 147
We conclude that enforcement of labour market rules is wholly inadequate—not because enforcers or regulators are not performing, but because they are under- resourced and not given the priority they deserve for legislative reform.
Government Response Summary
The government acknowledges the importance of effective dispute resolution and details specific measures taken to address Employment Tribunal backlogs and capacity, including recruiting new judges and caseworkers, deploying virtual platforms, and making operational changes.
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27 Conclusion Deferred
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 Summary
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 the National Minimum Wage Team.
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29 Conclusion Deferred
Para 160
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 Summary
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 about the Retained EU Law Bill and the need for careful review of EU retained employment law.
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34 Conclusion Deferred
Para 202
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 Summary
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.
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37 Conclusion Acknowledged
Para 205
We note that pensions reform may be a requirement and draw this, and our broader observations and recommendations, to the attention of the Work and Pensions Committee, which has responsibility for scrutiny of the Department for Work and Pensions.
Government Response Summary
The Government notes the recommendation.
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