Progress for returners

The Spring Budget 2023 focused on helping inactive people return to work by implementing the Chancellor's strategy to deliver long-term sustainable growth, focusing on four key priorities: Employment, Education, Enterprise and Everywhere. We summarise the key points pertinent to employers:

Reducing childcare costs to support working parents

This cou d be a “turning point” for working parents, who are key to bui d ng more diverse equ tab e and nc usive workp aces What’s crucial now is to ensure supp y ncreases to meet the new demand so this commitment does not fa l flat

Keep the highly skilled in work by lowering pensions tax

This reform reduces the temptat on to retire early with this move and w ll have a pos tive impact on certain emp oyee benefits This wi l a so save employers sign ficant administrat on costs

Apprenticeships for those over 50

The returnerships “ref ne ” ex sting sk lls programmes to make them more accessible to older workers Emp oyers must recognise that the wants and needs of over 50s may vary from younger workers, and put measures in place to directly meet the r expectations Flex b e work ng and certain benefits such as private hea th schemes may be appeal ng to them

More support for occupational health to keep people in work

This plan w ll tackle health ssues keeping peop e out of work – w th a particular focus on menta hea th, musculoskeletal cond tions and cardiovascu ar disease Emp oyers want to do the right th ng by their staff and hav ng government-backed occupat onal health support s a pos tive step

‘Universal support’ scheme to help disabled into work

A new voluntary employment scheme for disabled people and those with hea th condit ons Emp oyers can mplement common ad ustments that w ll benefit a ma ority, as well as uti ise pos tive action tools to proact vely appeal to this popu ation

Economic outlook headlines

The escalation of geopolitical tensions together with rising energy prices, interest rates and inflation are expected to continue contributing to an unsettled economic climate and market conditions

Cost-of-living crisis

The cost-of-living crisis continues to make an mpact. Reduced demand from households and businesses for goods and services coupled with r sing costs of mater als, energy, and staff costs mean that cha lenges are still to come for ndividua s and organ sat ons alike

Inflation

Inflat on has begun to fall but remains above the Bank of Eng and 2% target Annua pay growth is expected to flatten out at c.7% n the near term

Economic structural challenges

Persistent supply-side challenges continue to we gh on future growth prospects

Business investment has stagnated since 2016

Labour market participation, having risen since 2010 has fallen dramatically in the wake of the pandemic especially among older workers

Productiv ty has grown at ess than half its pre-financial cr sis rate since 2010