reforms Archives - WRLO Accountants

Employment reforms continue to stifle business hiring intentions

WRLO Accountants — Tue, 01 Apr 2025 09:46:38 +0000

The government’s employment reforms are causing employers to put their hiring plans on hold, according to the Institute of Directors (IoD). The IoD noted that there was a small increase in payrolled employees in the latest Labour market data released by the Office for National Statistics (ONS). Estimates for payrolled employees in the UK increased by 9,000 between December 2024 and January 2025, said the ONS. However, the ONS data also showed static job vacancies and increase in the unemployment rate. Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said: ‘Our data shows that half of business leaders facing higher National Insurance bills plan to reduce employment in response, and that business hiring intentions over the next year remain around lows last seen at the height of the Covid-19 pandemic. ‘The government missed an opportunity at Report Stage of the Employment Rights Bill to show that it has listened to business feedback about how to avoid the reforms damaging employment prospects. ‘The government’s Better Regulation Action Plan is a welcome shift in narrative, but such commitments will ring hollow if the principles are not first applied to its plans to increase the regulation and cost associated […]

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Employment Rights amendments do little to address employer concerns

WRLO Accountants — Sat, 08 Mar 2025 16:50:46 +0000

The government’s proposed amendments to the Employment Rights Bill will do little to alleviate employer concerns, warns the Institute of Directors (IoD). Changes to a number of proposals, including application of zero-hours contracts to agency workers and Statutory Sick Pay, have been announced. In February, the IoD set out four key changes to the Employment Rights Bill which would significantly soften the negative impact of the reforms on hiring. This included delaying protection against unfair dismissal so that they only come into effect after six months rather than on day one and increasing the planned reference period for the entitlement to guaranteed hours to 52 weeks. Alexandra Hall-Chen, Principal Policy Advisor for Employment at the IoD, said: ‘While any steps to mitigate the impact of the government’s employment reforms on businesses are welcome, the changes announced today do not address the key areas of the reforms which are of particular concern to employers. ‘Substantial further amendments to the Bill will be required if it is to avoid undermining the government’s growth mission. Our own data shows that directors’ headcount expectations have dropped to lows last seen in the depths of the Covid-19 pandemic. Urgent and substantive action from government is […]

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Government announces apprenticeship reforms

WRLO Accountants — Fri, 04 Oct 2024 19:14:06 +0000

The government has announced an overhaul of the UK’s apprenticeship system. A new growth and skills levy which will replace the existing apprenticeship levy and include new foundation apprenticeships. The government says these new apprenticeships will give young people a route in to careers in critical sectors, enabling them to earn a wage whilst developing vital skills. The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months. The training eligible for funding under the new levy will develop over time, informed by Skills England’s assessment of priority skills needs, the government adds. The Department for Education will set out further details on the scope of the offer and how it will be accessed in due course. Alex Veitch, Director of Policy at the British Chambers of Commerce, said: ‘Skills shortages continue to be a major concern for businesses and a drag on economic growth. ‘The proposed new Growth and Skills Levy was a key part of the government’s plans at the election. It is welcome ministers have acted early to give more details about skills reform. […]

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