We round up the latest employment news.
New consultation on mandatory ethnicity and disability pay gap reporting
The government has started a consultation on its manifesto pledge to introduce disability and ethnic pay gap reporting for large employers (250+ employees). The proposed framework will be similar to the existing gender pay gap, and will use the same snapshot dates of Saturday 5 April for private employers and Monday 31 March for public bodies.
Responses to the consultation will be used to shape the government’s proposed Equality (Race and Disability) Bill, which it hasn’t yet published.
The consultation closes on Tuesday 10 June 2025.
New support to help sick and disabled people get back to work
The Department for Work and Pensions (DWP) has announced new measures to enhance employment support for sick and disabled individuals. As part of the government's Plan for Change, 1,000 work coaches will be deployed to provide intensive, personalised support to around 65,000 people on health-related benefits.
The work coaches will help them to prepare for interviews and access various DWP employment programs.
Planned redundancies in the UK decrease by 13%
According to data provided by the Insolvency Service, the number of planned large-scale redundancies in the UK has fallen by 12.9% compared to last year. And, in the three months to the end of February 2025, the numbers of proposed redundancies decreased by 2.9% compared to the same period last year.
Many commentators believe that the combined whammy of higher employer national insurance contributions and the national minimum wage, which both come into force next month, are likely to result in more redundancies in future.
New measures to enhance recruitment of care workers in England
The UK government has introduced new regulations, which will require care providers to prioritise recruiting international care workers already in England before seeking candidates from overseas. Effective from Wednesday 9 April, these rules aim to support people who came to the UK to work in adult social care. The government hopes this will reduce UK employers' need to recruit new candidates from overseas.
Employers must now demonstrate that they have attempted to fill vacancies from those already in the UK who need a new sponsor.
The new rules also update minimum salary thresholds for Skilled Worker visas to £12.82 per hour.
Skills and training scheme expanded
The UK government has announced that it will expand the sector-based work academy programme (SWAPs) next year, and aims to provide tailored training to over 100,000 job seekers.
The SWAPs programme provides training, work placements, and guaranteed interviews for individuals receiving certain benefits in England and Scotland. Last year over 63,000 people joined the programme and were helped to find employment.
The government is also partnering with UKHospitality to roll out a hospitality SWAPs pilot to 26 new areas, including 13 coastal towns. This initiative aims to fill high-vacancy roles in the hospitality sector, which currently has 88,000 available positions.
UK labour market decline slows in February
The UK labour market saw a slower decline in recruitment activity in February 2025, according to the latest KPMG report. Permanent staff hiring fell for the 29th month in a row, but at a reduced pace. Temporary staff demand also weakened, though less sharply than in January.
The report also found that:
- Starting salary inflation slowed to its lowest in four years
- The number of people looking for work increased due to redundancies and fewer job opportunities; and
- All English regions experienced declines in permanent staff appointments, with the north seeing the steepest drop.
Youth unemployment in the UK reaches 11-year high
The number of young people in the UK not engaged in work, education, or training (NEET) is now at its highest level in 11 years. According to the latest data from the Office for National Statistics (ONS), 987,000 individuals aged 16-24 were classified as NEET between October and December 2024. This figure represents 13.4% of the age group, marking a significant increase of 110,000 from the previous year.
The government has responded with its Youth Guarantee initiative, promising opportunities for every young person to “earn or learn.” However, young men are disproportionately affected, with 14.4% of males in this age range being NEET compared to 12.3% of females.
Acas publishes report on neurodiversity at work
In February, Acas published guidance to help employers create inclusive workplaces for neurodiverse staff. It has now released a new report on neurodiversity at work, authored by researchers at Birkbeck, University of London. The report emphasises that employers need to take proactive measures to support neurodivergent employees, who make up 15 to 20% of the adult population.
It recommends that employers should:
- Make flexible, easily accessible adjustments for staff without waiting for a formal diagnosis
- Ensure that neurodivergent employees feel safe discussing their needs and that managers receive training so that they can support them
- Develop tailored career paths for neurodivergent employees; and
- Regularly evaluate whether their efforts are helping to support these colleagues.
New inquiry by House of Lords into remote and hybrid working
The House of Lords Committee on Home-based Working has initiated a call for written evidence into remote and hybrid working in the UK. The inquiry will explore the challenges and opportunities of these working arrangements for employees and employers.
The deadline for submissions is Friday 25 April, with the Committee expected to report its findings by Sunday 30 November.
UK businesses have record numbers of female leaders
The UK is setting a global standard for gender equality in boardrooms, with women now occupying over 43% of roles on company boards, according to the latest FTSE Women Leaders Review. The report reveals that women hold 1,275 board positions and 6,743 leadership roles across FTSE350 companies.
More than 60% of these companies are close to achieving the 40% target for women's representation in boardrooms. Among the 50 largest private companies, women now occupy 30% of board roles and 37% of leadership positions.
Remote working boosts employment for disabled workers
A study by Lancaster University's Work Foundation highlights the benefits of remote and hybrid work for disabled employees. With 20% of workers now primarily working from home, disabled workers report improved health and job satisfaction. The research highlights that 80% of those in fully remote roles report positive impacts on their health, compared to 38% for those working remotely less than half the time.
Despite the benefits, there is a notable gap in job advertisements for remote and hybrid roles, with only 3.8% of vacancies on the Department for Work and Pensions Find a Job portal offering such options.
Increased SMP recovery for small employers
The UK Parliament has introduced new regulations set to take effect on Sunday 6 April. These will significantly impact small employers by increasing the compensation rate for National Insurance Contributions (NICs) on Statutory Maternity Pay (SMP) from 3% to 8.5%. Small employers, defined as those with gross Class 1 NICs payments not exceeding £45,000 for the qualifying tax year, will benefit from this change, allowing them to recover a higher percentage of SMP paid to employees.
Read more – March 2025
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