Reforms to employment support announced
The government has unveiled some significant reforms to employment support, underpinned by a £240 million investment. The measures aim to address deep-rooted issues of unemployment, economic inactivity, and barriers to work, as detailed in the recently published Get Britain Working White Paper.
Figures quoted in the government’s announcement made for sobering reading. 1.5 million are unemployed, 9 million are economically inactive, and a record 2.8 million are out of work due to long-term illness. Young people, in particular, are disproportionately affected, with one in eight not in education, employment, or training.
The UK is apparently the only major economy that has seen its employment rate fall over the last five years. The government has attributed the reason for the decline to an increase in long-term ill health, as well as an employment support system that is outdated.
Therefore, the White Paper is highlighting the need for a fundamentally different approach to employment, health, and skills support to revitalise Britain’s workforce.
What are the key reforms being proposed?
- Revamping jobcentres: These will be transformed into a new “national jobs and careers service”. This overhaul will focus on developing people’s skills and careers rather than simply monitoring benefits.
- Tackling economic inactivity from ill health: Health-related issues will be addressed through employing extra NHS staff in 20 areas that have high inactivity so as to cut waiting list times. Mental health support will also be expanded.
- A new “Youth Guarantee”: Every 18-to-21-year-old will have access to an apprenticeship, quality training and education opportunities. The current Apprenticeship Levy will be replaced by a more flexible Growth and Skills Levy. Eight youth “trailblazer” areas are to be set up, including in Liverpool, Tees Valley and the East Midlands to help young people in those areas find education, training or work.
- Supporting people with disabilities and health conditions: An independent review will be launched into the role of UK employers in promoting health and inclusive workplaces. It will look at what more can be done to enable employers to increase the recruitment and retention of disabled people and those with a health condition. It will also explore early intervention for sickness absence and what may help increase returns to work.
- Empowering local communities: Local leaders, including mayors and councils, in areas of England that are not getting a trailblazer will receive up to £15 million to develop their own plans.
How will the reforms affect you?
Based on the changes being proposed, we may begin to see new measures introduced into employer’s obligations towards long-term sickness.
Over the longer term, if these initiatives result in more younger people receiving more training, then this may increase the number of skilled people available for hire. This could alleviate the difficulty some businesses are finding in locating suitably qualified staff.
To review the White Paper, see here.
Be wary of Self Assessment scams
Scam attempts on the increase
HM Revenue and Customs (HMRC) have issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns. In the last year, nearly 150,000 scam attempts were referred to HMRC, a 16.7% increase on last year. With the 31 January 2025 filing deadline approaching, fraudsters are likely to step up their activities.
HMRC reports that around half of all scam reports in the last year were fake tax rebate claims. Fraudsters are usually aiming to get hold of personal information and banking details.
If you receive an email, text or phone call from someone claiming to be from HMRC that asks you for personal information or offers you a tax rebate, there is a useful checklist here that can help you identify a scam.
It is helpful to know that HMRC will never leave voicemails threatening legal action or arrest. Neither will they ask for personal or financial information over text message.
HMRC also will not contact you by email, text, or phone to announce a refund or ask you to request one.
If you have been contacted by someone claiming to be from HMRC and feel unsure whether it is a scam, or you would like to check whether you are due a tax refund, call us at any time and we would be happy to help you.
New Fair Payments Code launched
Will it help you get paid quicker?
The government’s promised new Fair Payments Code was launched last month to try and tackle late payment problems that can be particularly harmful to small businesses.
How will the Fair Payment Code help?
The code introduces a gold, silver, and bronze system that smaller firms can use to identify business partners who have made themselves accountable to pay fairly and within certain time limits.
The three award tiers have the following requirements:
- Gold award: for businesses paying at least 95% of all invoices within 30 days.
- Silver award: for businesses paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days.
- Bronze award: for businesses paying at least 95% of invoices within 60 days.
Businesses that are granted an award also agree to abide by the principles in the Code of being “Clear, Fair and Collaborative” with their suppliers.
The awards, once granted, last for two years and then must be reapplied for at the conclusion of that time. There will be a “robust” complaint system so that businesses who don’t meet the requirements of their award or otherwise comply with the principles in the Code can be reported.
Dealing with late payments can be a challenge to deal with. While the new Fair Payments Code may help, there are a variety of methods you can use to help reduce the effect of late payments. If you need practical help in how to improve how quickly your business is paid, please get in touch and we would be happy to help you.
