Cost of Living White Paper

1 COST OF LIVING WHITE PAPER

03Contents Forewords 04 Introduction 06 Introduction to the Purpose Business Coalition 07 Introduction to the Cost of Living Taskforce 08 Best practice from businesses across the UK 21 Driving more action 08 Calisen 10 Co-op 12 SMS 14 Severn Trent 16 Pertemps 18 Reed in Partnership 19 Leonardo 2

The good news is that the best organisations are already taking steps that will make a positive difference to those they serve, using their knowledge and experience of those communities to understand how best to help. The government’s appointment of JustEat boss David Buttress as Cost of Living Tsar in June shows it also understands the role businesses can play.

1Citigroup bank forecast, August 2022

It means that every organisation can play a role in helping navigate Britain through this difficult time. That in turn means every organisation needs a plan to help their customers, colleagues and communities. In fact without a collective national effort we put levelling up at risk for generations

That’s why the Purpose Coalition’s new Cost of Living Taskforce will bring together best purposeled companies who are committed to helping their customers, colleagues and communities through this difficult time. The Taskforce will meet every month to share insights, track progress and ensure maximum impact.

The reality is no organisation can tackle this crisis alone. It requires a collective national effort to bring everyone together and tackle the biggest economic challenges facing people across the country in decades. But every organisation can make a decision to make a difference - that’s what the Purpose Coalition is all about and it’s what our Cost of Living Taskforce will aim to do.

With forecasts of inflation seemingly rising every day - currently projections suggest as high as 18.6% by January 20231 - three quarters of all adults have said they are worried or very worried about increases in the cost of living. 41% say they are reducing the amount of food they buy and 5% are cutting back on car journeys. Businesses too are facing huge challenges - with the same rising costs, supply chain challenges, and added to that a shortage of skilled workers, all impacting upon

It is crucial that, as the new government takes office, a sharp focus is maintained on tackling the rising cost of living, without losing sight of a longer-term reform package for levelling up. But it will be up to businesses to play a strategic role in shaping a response to the problems that the country is facing.

Rt Hon Justine Greening, Chair of the Purpose Coalition One of my earliest lessons on money management was from my parents - watching them add up the supermarket bill before we left home so that we didn’t put more in our trolley than we could afford. It especially mattered when my father spent months unemployed in the mid-1908s. But as responsible with money as my parents were, it’s hard to see how they could have money-managed their way through today’s cost of living crisis.

Meanwhile,operations.expectations

3 Foreword

are changing. Whether we are an employee, customer, investor or just part of the wider public, we expect something more from the organisations we work for or do business with - a positive contribution to the public good. The COVID-19 pandemic heightened those expectations, and the best companies responded with creative and innovative solutions that offered crucial support to those who needed it most. We need the same level of response from business and employers to today’s cost of living crisis. What’s on the line isn’t just the wellbeing and livelihoods of people today, it’s also about preventing the longer term ‘scarring’ of prospects that can often happen when people and families slip into debt. The cost of living crisis threatens a profound levelling down moment for Britain, the exact opposite of what we want to see.

During the summer that is important, in the middle of winter it could be life-saving.

4 Foreword

It is inevitable that the fiscal climate which is contributing to the current cost of living crisis will make tackling the longstanding and entrenched geographical inequalities in this country much more challenging. It also makes clear how crucial it is that we achieve that ambition. While it is vital that the Government maintains its vision of levelling up to ensure that opportunity is available to everyone, in every community, it is becoming clear that it is business that is in the driving seat. That is why policymakers and investors regard a company’s commitment to ESG policies as integral to their wider mission, and more important than ever.

The pandemic proved that the best businesses prioritise the ‘S’ in ESG, positively impacting the communities they serve and tackling societal issues like diversity and inclusion and mental wellbeing more effectively. They were at the forefront of responding to the challenges that the country faced during that difficult time. Many provided administrative and digital support for staff to be able to work remotely, for example, or established forums where employees could discuss their wellbeing concerns constructively. They reviewed how they communicated with and supported their customers, some of whom had lost their jobs, as well as the logistics of collection and delivery. They also reached out to the communities they served, and whose needs they understood, to support them as practically and empathetically as they could.

Successful companies are deeply rooted in the communities they serve. They are familiar with the problems they face and understand how to target the help they give to those who need it the most and then tailor it to their needs so that it has the greatest impact. The local partnerships they develop bring that expertise and experience together, building sustainable relationships which can flourish in times of Wedifficulty.havealready seen some companies announce across the board pay rises or one-off payments to help mitigate the inflationary pressures that their employees are facing. Others, particularly utility companies, are considering what can be done to help their customers, especially the most vulnerable.

This White Paper represents a snapshot of what some of our Purpose Coalition partners are doing to help their staff, customers and communities weather the current cost of living storm. We are continuing to work together, advocating for the benefits of being a truly purpose-led business to policymakers and shaping and developing the levelling up agenda. Their shared values are ones to which all businesses should aspire so that we can deliver real equality of opportunity where it is most needed.

Businesses’ response to the pandemic showed the extent to which the actions they took could impact communities, in a way that had not been seen before. Their reaction to the cost of living pressures will do the same. Those who have the most genuine commitment to ESG and the most authentic support from their leadership teams have demonstrated that they are able to mobilise the most quickly and effectively in times of crisis or emergency.

Lord John Walney, Chair, Purpose Business Coalition

5 fromEnergy£3,549PriceCapOctober2022Source: Ofgem current10.1%UKinflation rate Source: House of Commons Library 75% of all adults have said they are worried or very worried about increases in the cost of Source:living ONS 41% of people say they are reducing the amount of food they buy Source: ONS The biggest fall in living standards since the 1950s Source: OBR increase80%fromtodaySource: Ofgem predicted£6,616EnergyPriceCapinApril2023Source: InsightCornwall predicted18.6%UKInflationrateinJanuary2023Source: Citigroup Current1.75%Bank of England Interest Rate - a 30 year high Source: Bank of England InflationEnergy and Interest Rates The TheImpact£reality of the cost of living crisis

The Purpose Coalition is Chaired by Rt Hon Justine Greening, the UK’s former Secretary of State for Education, Transport and International Development; and Lord John Walney, a Crossbench Peer and former Labour Member of Parliament for Barrow and Furness.

As the UK deals with the legacy of COVID-19 and colleagues, customers and communities face new challenges. Tackling the rising cost of living is one of the most urgent priorities of this generation. Without action, it will lead to a real and sustained squeeze on household living standards. That means the role of responsible organisations and the role they play has never been greater.

Leadership on the big issues

Introduction to the Purpose Coalition Co-opSMS

A force for good The Social Mobility Pledge is the biggest social mobility campaign in Britain, and brings together a network of purpose-led leaders - the most committed of which are working with Rt Hon Justine Greening in the Purpose Coalition. From working with businesses to respond to COVID-19, to connecting Ukrainian refugees with businesses offering employment and training - the Purpose Coalition has always sought to be a force for good in the challenges facing Britain.

CommunitiesReed PartnershipinSevernCalisenTrent Pertemps Customers

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Colleagues

Customers, Colleagues and Communities

> Customers > Colleagues > throughCommunitiesthiscost of living crisis. Every responsible organisation needs to ask what they are doing on these three things.

The Taskforce will meet monthly - across the country - in order to share insights, track progress and ensure maximum impact.

This Cost of Living White Paper sets out some of the bold and significant commitments Purpose Coalition Members are making in order to help their customers, colleagues and communities through this difficult time.

Whilst the cost of living crisis will affect the poorest in society the most, with the poorest households facing a higher level of inflation, one of the biggest challenges for government is that the rising cost of living will affect almost everyone. The Chancellor of the Exchequer recently said that anyone earning £45,000 or less will need help with their energy bills. The challenge of the crisis is that those in professional jobs - such as teachers and nurses - face being pushed into poverty, in a way that has not been seen before.

The cost of living is the biggest issue facing Britain today, and will require action from all sections of our society - whether politics, business, or all of us as individuals helping out our friends, neighbours and local communities where we can.

An ongoing response to the biggest challenge facing Britain

As the UK now deals with the cost of living crisis, expectations will be the same, and the importance of responsible organisations and the role they play has never been greater.

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As we confront a huge inflation crisis, the Purpose Coalition is launching its cost of living task force to push itself and others to do more to support Britain through the cost of living challenge. We want organisations to ask what they can do for their:

The Cost of TaskforceLiving

Crucially, the Cost of Living Taskforce needs to bring ideas from across the United Kingdom together, and therefore meetings will take place in all corners of the country. The pandemic set a new standard for what people expect from government, businesses and their employers. It is no longer good enough to deliver primary function, without making a wider contribution to society.

Calisen

> Control: UK Government research indicates a 2.8% electricity reduction and 2% gas reduction among Smart Meter owners. These savings are calculated on the basis of the installation of a Smart Meter alone. Consumers are provided with real time data through an in-house display unit accurately measuring the amount and cost of appliances in use. This allows consumers to identify appliances that are low value, high cost, and alternatively low cost, high value, providing real choice in pounds and pennies of their energy consumption.

To date Calisen has installed over 8.6 million Smart gas meters and 11.4 million Smart electric meters, helping empower consumers and support them to make the best possible energy choices. "

As a leading owner and manager of essential energy infrastructure assets, Calisen sits at the heart of the UK energy ecosystem. Our mission to deliver ‘Smarter energy for all’ particularly through the roll-out of Smart Meters, is helping consumers reduce their energy consumption and costs, helping deliver a cleaner, more efficient and sustainable energy segment.

In addition to quantified benefits in delivering reduced energy consumption, with the concurrent positive financial and climate impact, the Smart Meter roll out has according to the UK Government been an important contributor to the national economy, supporting around 15,000 jobs across Great Britain with over 99% of the funding coming from the private sector and annual investment running at Smartc.£1bn.Meters provide a more digitally enabled energy system, which in turn should result in faster data management and monitoring, heralding a number of developments:

SmarterCalisenEnergyforAll

> Billing: Smart Meters provide the opportunity for two-way communication between energy retailers and the meter itself. The introduction of Smart Meters into the domestic energy system is a step change in the way energy is provided to consumers, allowing customers to measure and effectively monitor their energy consumption.

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As we move to a more decentralised energy system, Smart Meters are believed to be a key enabler of change as they allow for consumption measurements in near real time, permitting variable pricing mechanisms in order to manage demand, primarily in the electricity segment.

Enabling consumers to have greater visibility and control over their energy consumption is crucial in helping ameliorate the impact of rising energy prices, and inflation more broadly, that are contributing to the current cost-of-living challenge. Smart Meters put the consumer in control of their consumption in a greater way than has ever been possible before, with the information and data made available to consumers to inform their energy choices.

To date Calisen has installed over 8.6 million Smart gas meters and 11.4 million Smart electric meters, helping empower consumers and support them to make the best possible energy choices. Our roll out programme is accelerating once again following the disruption of the COVID-19 pandemic, and our recent acquisition of the smart metering installation business of Utility Warehouse, will help support the benefits of Smart Meters being brought to even more consumers in the months and years ahead.

> Supplier Management: Increased billing accuracy through rapid data collection and transfer, with the potential for lower energy bills from improved grid management, a cheaper and simpler switching process, and improved pricing transparency to allow more informed decisions on switching to be made, allowing consumers to make more informed decisions on energy providers and competitive tariffs.

9 Calisen

> National Provisions: Smart Meters also help energy network operators balance the grid by providing more information regarding energy consumption patterns. Using insights on energy usage, enables utility companies to develop various tariffs, including pricing incentives to encourage energy saving. In addition, this directly contributes to tackling the climate emergency, as it means energy suppliers can become far more efficient about how much energy they produce, as they understand more about when we will need it.

The overall impact of Smart Meters on consumers is summarised by increased billing accuracy through rapid data collection and transfer, providing the opportunity for lower energy bills, achieved by improved grid management, a cheaper and simpler switching process, and improved pricing transparency to allow more informed decisions on switching to be made.

In addition, the in-home digital data display unit allows consumers real information on appliance vs. energy usage, allowing for more informed consumer consumption and closer management of day-to-day usage resulting in lower energy bills. The overarching impact is that consumers have more knowledge, accurate data and billings creating opportunities for cost savings for consumers who are impacted by the cost-ofliving crisis.

> Time Management: Energy used by households in most circumstances currently costs the same at all times of the day, and so there is no motivation for consumers to balance consumption across the day. A more digital energy system should allow consumers to target energy use in the lower-demand and less costly time of the day.

The Co-op’s focus on financial wellbeing pre-dates both the ‘cost of living crisis’ and the pandemic, although both have only served to highlight why now more than ever a purpose led business has a responsibility to support the financial wellbeing of all colleagues. What do we mean by ‘financial wellbeing’? It’s about feeling in control of your finances – being able to pay your bills, feed your family, heat your home and not being forced into debt. That’s the starting point for the Co-op. We aim to support our colleagues to have control over their money and, ideally begin to develop positive habits like saving a little each payday and planning for their retirement. We want to give colleagues the tools to become financially secure in the long-term.

And why does the Co-op think a focus on financial wellbeing matters? It’s about meeting our colleagues needs first and foremost –ensuring better mental and physical health and wellbeing. But there are other reasons all employers should focus on promoting financial wellbeing. It is linked to better health outcomes, reduced absence rates and lower turnover of people. Co-op commissioned research undertaken in March 2022 suggested that 52% of those questioned thought workplace support should be in place to support financial wellbeing.

Co-op

Listening to colleagues has been central to the Co-op’s approach. Through regular engagement with colleagues – both formally and informally – the Co-op learned that colleagues in many communities were struggling. Many colleagues (particularly those in their 20s and 30s) were over indebted, savings rates were falling to historic lows and in-work poverty was rising. It was also clear that for many colleagues, basic skills for money management were missing.

FinancialCo-opwellbeing

The Co-op is the UK’s largest consumer cooperative, owned by more than four million active members. It is a major food retailer and wholesaler, the largest funeral provider in the UK, a major providers of regulated consumer legal services, life planning and insurance products. Employing over 60,000 people and with an annual turnover of £11 billion, the Co-op was founded in 1844 as arguably the original purpose-led business. The Co-op exists to meet members’ needs and stand up for the things they believe in – delivering profit for purpose. The Co-op vision of ‘co-operating for a fairer world’ includes a commitment to be ‘fairer for our colleagues’. Paying colleagues fairly for the work they do is central to the Co-op approach –the Co-op pays the real living wage to all its colleagues. It does not pay either the ‘Under 23’ or ‘Apprenticeship’ rate even though it employs more than 650 apprentices and 7% or Co-op colleagues are under 20. But purely focussing on pay isn’t enough, that’s why the Co-op has a longstanding programme to support the financial wellbeing of all its’ colleagues.

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The CIPD agrees. Research from April 2022 showed that employees whose workplaces have a financial wellbeing policy are more likely to agree that their job protects them from poverty and they feel in control of their finances. They also tend to be more satisfied with their employee benefits package and feel comfortable asking their employer for help with financial problems if they need it.

Co-op

Credit Unions – the Co-op movement has close links to the Credit Union movement. Almost 5,600 colleagues are members of the two credit unions associated with the Co-op – Keep Credit Union and the Co-op Credit Union. Both are free to join and can give colleagues a better deal on saving or borrowing money. Regular payments are made into savings and loan repayments come straight out of colleague’s pay.

This list is not exhaustive but it does demonstrate the range of activities an employer can develop to promote financial wellbeing. The mix of support and programmes needs, however, to constantly evolve. The Co-op is working towards a comprehensive financial wellbeing strategy that is designed and built for colleagues in response to their expressed needs.

11 This has led to a package of support developed to address the needs to Co-op colleagues. These include: Wagestream – a financial resilience programme which includes a salary advance option, launched in 2021, allowing access to earned pay between paydays. The scheme was launched as the Co-op was aware that many colleagues struggled from payday to payday. Wagestream helps to smooth their cashflow with an advance rather than having to borrow money. To date the scheme has been used by more than 13,000 colleagues, of which around 7,000 have reported they feel less stressed as a result and are in more control of their finances. Wagestream also offers an instant access savings account paying 5% interest - around 3,450 colleagues have opened one.

Delivering support to promote financial wellbeing of colleagues is a key step that any purpose led employer should consider taking. Supporting colleagues to take control of their finances promotes not only their financial wellbeing but promotes mental and physical wellbeing. It is the right thing to do for individuals but also for employers.

In the last month the Co-op launched a survey targeted at all colleagues to find out what additional support they would value. This survey will be followed up with a ‘deep dive’ with colleague focus groups who will be supported to set the strategy they want rather than for one to be ‘set’ by the People team. By taking this colleague led approach the Co-op’s ambition is to put in place an approach that is uniquely tailored to the needs of Co-op colleagues. The CIPD reports that only 20% of employees say their employer has a financial wellbeing policy and the same proportion believe their employer isn’t doing enough to support them. And for those in most need of support, low paid workers, the figure in one in four.

Rental Deposit Scheme – colleagues can apply for an interest-free rent deposit loan to help with the cost of renting a home. An application can be made as soon as a tenancy agreement has been received up to a maximum of 80% of earnings over a 4-week period. Repayments are taken directly from salary over the next 10 paydays after the loan is received.

Regular communications and advice – a monthly ‘Wellbeing Wednesday’ email is sent to all colleagues with help and support on every aspect of health and wellbeing, including financial wellbeing.

Access to Debt Advice – the Co-op has partnered with StepChange to make sure colleagues can get the best possible help with debt. StepChange give confidential independent professional advice by phone and online.

Living Hours 2022

12 SMS SMS In 2020, SMS plc became an Accredited ‘Living Wage’ employer. In addition, we launched a new pay and reward framework ‘One – SMS’ in 2021 to ensure pay equity, and then became an Accredited ‘Living Hours’ employer in June 2022, to support the development of our people, future business growth, and enabling a particular focus on those employees who joined the business on an entry level salary. Whilst all employees within SMS plc received a cost of living award in 2022, it was decided that further rewarding employees in lower paid roles demonstrates the Company’s commitment to supporting those employees where the substantial cost of living will be felt more acutely. Therefore the focus in April 2022 was to increase employees’ salaries which are classed as entry level roles within our ‘One – SMS’ pay and reward framework. 23% of our employees receive a ‘Living Wage’ salary for these roles which are generally harder to recruit and retain and are critical to business success. The UK ‘Living Wage’ for 2021/2 (excluding London) increased from £9.50ph to £9.90ph.

As an Accredited ‘Living Wage’ employer, we had an obligation to meet this increase for our employees, however, our moral focus and business strategy enabled us to increase our entry level hourly rate further, to £10.51ph for 2022, which is £0.61p higher than the ‘Living Wage’. Employees who were in receipt of the new Living Wage of £9.90ph, received a 10.6% increase to £10.51ph. Employees who were slightly above the Living Wage and increased to £10.51ph, received an increase of between 6-9%.

Continued Commitment

We are proud of our commitment of being an Accredited Living Wage and Living Hours employer, and the approach we have been able to take in 2022 to further reward our ‘Living Wage’ employees. This will be a continued focus for SMS into 2023, as we always aim to ensure any decisions made are in the best interests of our people. This demonstrates our commitment to not only our employees, but to the economy as well.

In addition to being an Accredited ‘Living Wage’ employer, SMS plc became an Accredited ‘Living Hours’ employer in June 2022. This means that we must provide all direct employees and third-party contracted staff within scope with; (i) At least 4 weeks’ notice period for shifts; (ii) A contract that reflects the hours they regularly work; and (iii) A guaranteed minimum of 16 hours per week (unless employee requests fewer).

Craig Murphy, Customer Service Adviser

We always aim to ensure any decisions made are in the best interests of our people. This demonstrates our commitment to not only our employees, but to the economy as well. "

Karen Robins, Metering Coordinator

Abigail Burns, Task Force Advisor

‘The recent wage increase to £10.51 was a welcome surprise given the current increases in cost of living. I run a pretty strict budget to ensure I’m not worrying too much about finances however recently this has been strained. I did expect some form of increase around 1 – 2 % and started to budget around that figure but an increase of more than double those figures has really helped. The biggest impact for myself is on fuel costs, the extra on my wage has allowed me to worry less about using my car as I depend on my car to travel to the office, it also helps towards the increase in weekly food shopping for myself as this was also an expense which was starting to tighten my budget’.

‘I was thrilled with my pay increase last month; it was very unexpected to receive such a high percentage amount. I was hoping for 3% but when it came in at 6.45% it was amazing. I currently live on my own so pay everything myself. With my Rent, Council Tax, Water and Gas and Electric all going up this extremely worried me as to where the extra money would come from. I don’t have to worry now as the pay increase has covered everything and leaves me a little extra for a takeaway as a treat each month’.

13 SMS SMS Plc Employee Case Studies

‘When I received the increase in salary this had a huge and extremely positive impact on me as it has now allowed me to save faster for my first home and mortgage. This increase has had a great impact as well with my mental health as I am now reducing my medication as I don’t have as many worries especially with the rise in cost of gas and electric. It has given me the freedom to save and look forward for what I can do in my future with the extra money. This is just a few examples on the positive impact this increase has had on me’

Severn Trent is the first water company in the UK to offer help on this scale and builds on the support the company already provides to 215,000 customers, with an extensive range of schemes to help those in need. Those eligible could see a reduction in their bill of up to 90%. “I was really struggling to pay my water charges before I applied for the Severn Trent Big Difference Scheme. I was over the moon when I received my new bill showing the discount.”

CCW’s independent review of water affordability set out a clear path to ending people’s worries over water bills and with the support of companies like Severn Trent and the wider water sector, together people struggling to pay can get the help they need, when they need it most.

This comment from a Severn Trent customer, who signed up to access a financial support fund in May 2022, is a common one. As the cost of living continues to rise, it’s estimated by the Consumer Council for Water (CCW) that 6.5% of households in the Midlands are being forced not only in to fuel poverty, but water poverty too.

Severn Trent

People in water poverty are those who spend more than 5% of their total income (after household costs) on their water bill. Severn Trent doesn’t want any of its customers to worry about their water bill arriving and so recently made a commitment to support an additional 100,000 people through a £30 million package of financial assistance, to help households now, when they need it most. The move was welcomed by regulator Ofwat, CCW and the CBI and is proving popular with people across the Midlands. More than 4000 applications were received in the first two months of the scheme launching, with 80% being successful and 13,000 clicks on the website a month – more than 400 a day – indicates the high level of interest in the additional support being made available.

14 Severn Trent

The company provides support through The Big Difference Scheme and WaterSure, as well as a payment matching scheme, for those needing help with bills. Severn Trent encourages its customers to sign up to its Priority Services Register too, if they feel they would benefit from a more personalised service. The register helps identify customers with medical conditions, disability or restricted mobility, sight or hearing loss.

“I lost my job last year and I’ve struggled since claiming Universal Credit. The Big Difference Scheme has allowed me to pay my water charges on an affordable payment plan.”

> WaterSure is a scheme for Severn Trent customers that cap customer bills at the average yearly charge

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Leader of Birmingham City Council, Cllr Ian Ward added: "The cost of living crisis is hitting the people hard and they need help now, so this financial support package of measures is a very welcome move to cut water bills in a time of crisis. We've been in talks with Severn Trent to get help to those in greatest need and their help will make a huge difference to thousands of households currently struggling to make ends meet."

Severn Trent customer support schemes include:

Severn Trent is working hard to make sure that those customers who need support are aware of the help on offer, with a combination of targeted communications and partnership working. A great example of partnership working is a Care Leavers programme through which Severn Trent partners with six local authorities to offer financial support to young adults leaving the care system. This unique partnership allows care leavers to benefit from the Big Difference Scheme, offering a discount on water charges. A number of local authorities and registered social housing landlords also help identify and support those in need of financial support and engage with the local community through a team of outreach coordinators to promote awareness of affordability assistance. This fresh approach to support will see thousands of people lifted out of water poverty by automatically switching customers to one a support scheme.

Six local authorities to offer financial support to young adults leaving the care system. "

Severn Trent David Black, Ofwat CEO commented: "No one should have to choose between paying for water and paying for food. We're pleased to see Severn Trent recognising the increased pressure facing customers and acting now to help those struggling in water poverty. Other companies should look to do more to respond to the cost of living worries and we will be issuing new guidelines to signal the increased expectations of Ofwat and the public."

> The Big Difference Scheme can offer a reduction of water bills to any Severn Trent customer with a household income below £16,385 – this is the scheme that is being extended today to a further 100,000 people

> Priority Services Register is available to Severn Trent customers if they feel they would benefit from a more personalised service. The register helps identify customers with medical conditions, disability or restricted mobility, sight or hearing loss and those who would appreciate receiving their bills in a different format

> Severn Trent Trust Fund – Customers who are unable to meet the cost of water charges and who live in the Severn Trent area can apply for help directly and to organisations that work in the area of debt advice. To date, the fund has supported more than 627,500 customers

Severn Trent customers should www.stwater.co.uk/caringforyouvisitfor more information and to check eligibility.

As a business, we represent multiple sectors, so act as a barometer for the different market sectors in the UK. We either have clients in these sectors, or directly place candidates into the sectors, so have a true feel for what is happening.

Pertemps, established in 1961, is the UK’s largest privately owned recruitment solutions provider, consisting of more than 200 branches. Our national infrastructure and access to subject matter experts from across the group, gives us credibility across a broad spectrum of markets and this, coupled with our capacity to manage high volume, multi-site contracts, gives us the unrivalled ability to manage change, growth and continuous improvement. We see the next six months as a period when we should expect to see significant movement and potential disruption as workers in the private and public sectors continue to push for salary increases to mitigate the significant rises in the cost of living. There will be competitive tension between what happens in the public sector and expectations passed through to the commercial sector. It is, perhaps, the start of an avalanche of expectations.

Pertemps

What we do is give market comparisons and evidence the current market profiles for different roles, through our Meriden Media market insight team. We use this intelligence to advise clients on vacancies, current wages or salary levels, and to benchmark roles. In this way, we can advise clients on where salaries are going currently, linked to the growing demands of cost of living hikes. Due to the candidate short market employers are also forced to offer significantly higher pay rates/salaries to attract new employees. It now seems like Gazumping is not just a real estate thing these days. Payzumping is now very real.

Pertemps We need government backing to help businesses support those not currently working to find a way back to the labour market. "

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The jobs market is seeing very high demand in every local area across a variety of industries. While it’s a very candidate-focused market, the abundance of adverts reflects the challenges firms are facing.

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Pertemps

We’re continuing to see an increase in the number of active postings, a trend which has continued throughout the year, albeit a slowdown in hiring activity from previous months, indicating that employers are having difficulty in finding the talent they need in a tight labour market.

According to the Pertemps/CBI Labour Market Report in June 2022, further tightening labour demand. There were an estimated 1.3 million vacancies in the three months from March 2022 to May 2022. However, there are some early signs that the jobs market could be on the turn, with hiring slowing and unemployment edging up.

In our opinion, and through interaction with clients, we can see that, as low unemployment and the high demand for talent continues, especially in the private sector, it is creating a real tension that will cause salaries to continue to increase to address the demands of higher living costs. Worker expectations will cause salary increases in an attempt to keep pace with inflation at a rate we have not seen for years. There’s going to come a time when expectation against affordability for businesses becomes critical.

While labour shortages are restricting firms’ ability to hire and grow, it emphasises the need for cross-collaboration between recruiters and businesses to make sure they get hiring right in this challenging market. We need government backing to help businesses support those not currently working to find a way back to the labour market, developing more innovative and data-driven ways of understanding skills demand and to reform the skills system to equip people for the future.

18 Reed in Partnership

Reed Partnershipin

Finally, recognising that energy costs is the primary concern of our participants we have spent the past couple of months developing a new Energy Advice product.

Our Smart Energy Check will provide tailored and bespoke advice to our participants on how they can reduce their energy bills by simple changes in their home, affordable tips on home insultation and, crucially, sources of financial advice and support. "

Reed in Partnership deliver employment, skills and health services, working in some of the most deprived communities across the UK.

> We are also launching a cost-of-living toolkit, bringing together advice and information, which will be provided to our participants.

To respond to this situation, we have introduced a number of new products and initiatives into our programmes:

> Our staff have organised a series of costof-living events to offer information and advice to our participants on what help is available and how they can budget effectively. We have brought together local authorities, utility companies and organisations including Citizens Advice and Shelter to offer expertise and guidance.

> We are utilising expert local partners to upskill our front-line Employment Advisers so they can adequately support and signpost participants needing help to the right local organisations.

Our Smart Energy Check will provide tailored and bespoke advice to our participants on how they can reduce their energy bills by simple changes in their home, affordable tips on home insultation and, crucially, sources of financial advice and support. We have trained our staff and will start offering this service to participants in early September.

Leonardo is one of the UK’s largest employers of engineering apprentices and graduates and invests about £3.5 million on employee training and development annually to retain their staff and their unique knowledge. As a result of the high tech employment it offers, the average salary at Leonardo is £51K, compared to a national average of £31k. Its approach obviously pays dividends as productivity within the company is 95K a head, 80% higher than the UK average of 57K. Leonardo A person’s upbringing or background should not define the success of their future. "

Extending the talent pool

that the best way to deliver financial stability and resilience for individuals and communities is by providing well-paid, skilled jobs that not only provide employment but also offer rewarding careers in a company where people want to continue to work. The average length of service in Leonardo is greater than 20 years. During the pandemic it did not lose, or furlough, any members of staff but quickly facilitated remote working where appropriate, or continued onsite working where needed, to ensure customer deliveries.

Leonardo recognises the value in wider and often overlooked talent pools, including those returning to the industry after a career break, particularly women and those from an ethnic minority background. Programmes across its UK sites give experienced professionals the chance to get back into full-time employment through training and upskilling on the job. This approach also ensures that Leonardo has access to a wider population for recruitment, engaging talent which may otherwise be lost to the sector.

Leonardo

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Wider diversity in its workforce means a broader and more innovative perspective for the business. That makes good business sense, particularly in the context of the current skills gap across industry.

Retaining staff is just as important for the business as attracting them in the first place.

Leonardo employs 8,000 people across seven sites in the UK. For every 100 jobs within the company, it also supports 355 jobs across the country. It has a long tradition of supporting its employees, as well as its supply chain and its Leonardocommunities.believes

Leonardo firmly believes in equality of opportunity - a person’s upbringing or background should not define the success of their future. It acknowledges that those who do not have experience in their families or peer groups of working in the engineering or defence sector would not necessarily consider that the company is for them. It works hard to inform and educate those with talent of whatever background so they can access career opportunities through its STEM educational activities and its apprenticeship and graduate schemes. The opportunities for underrepresented communities not only change individual career trajectories and life prospects but create much-needed role models within families and communities.

Retaining underrepresented groups

Supporting financial resilience

Leonardo employees have access to discounts at hundreds of online and in-store retailers across the UK, such as supermarkets, gyms and holidays, to make their money go further. They also have an annual flexible benefits allowance they can put towards the benefit of their choice from its flexible Employee Benefits portal which has a wide choice of financial, physical or social benefits.

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As part of the Employee Benefits Programme, there are a number of financial packages available, including a special Workplace ISA where employees have the option of making regular monthly contributions to a savings account. They can also use their flexible benefits allowance from Leonardo to supplement their savings.

All Leonardo employees have free access to the Employee Assistance Programme, 24 hours a day, 365 days a year. It provides support and guidance on many aspects of financial wellbeing including managing finances, legal matters, financial support in times of crisis, managing life events and supporting staff in their retirement provision.

Leonardo also offers employees special deals on car leasing and purchasing schemes, including a salary sacrifice green car scheme that reduces carbon emissions and gives the employee tax and National Insurance efficiencies. Leonardo

It also offers employees life assurance, income protection for pension scheme members and access to salary finance which provides affordable loans that can be repaid through salary and money insights including webinars, budgeting tips and tools.

Creating opportunity through its supply chain Alongside its own workforce, Leonardo is committed to creating opportunities and offering financial stability through its extended supply chain partnerships, 71% of which were SMEs in 2020 Sorry, we cannot say this at present, as our submission is under review. It seems they may have a problem with accrediting defence companies, although it has already recognised BAE Systems. Watch this space! It does not employ people on zero hours contracts. Core to its approach is creation and innovation and it is currently developing a digital platform to support upskilling SME employees that will be available across much of its supply chain.

The Benefits programme also offers a Cycle to Work scheme and a Technology purchase offering where an employee can take out a loan for the product upfront and pay it back over 12 months via their salary.

Leonardo has a range of employee benefit schemes which can be used to help its staff save and spend better. Financial wellbeing, alongside physical, psychological and social wellbeing, is integral to employee wellbeing at work.

Everyone can make a difference, and Purpose Coalition members are committed to going further, faster in order to help their customers, colleagues and communities through this difficult time. As we saw during the COVID-19 pandemic, we can tackle the challenges facing Britain by working collectively. No organisation, whether that be government, business or communities, can tackle a crisis on this scale alone. The response of every business will and should be different, but it will make a difference. In a tight labour market, standing out from the crowd is essential if business is to attract and retain the best talent. Organisations cannot be seen to simply do the bare minimum, but to also play their part in supporting customers, colleagues and communities when times are tough.

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Whilst at the same time getting help to those who need it now, organisations and government must begin to think about how we address the medium term challenges too. This will be a major focus for the Cost of Living Taskforce.

The Cost of Living Taskforce will meet monthly, with new organisations committing to go further faster every month. This document is the beginning - the first seed in a journey to organisations coming together to help customers, colleagues and communities through this difficult time. In the same way that organisations are doing on levelling up, or have done on Net-Zero and Diversity and Inclusion, every organisation needs to set out their plans. That’s why the Cost of Living Taskforce will meet monthly across the country to share insights, track progress and ensure maximum impact - and every responsible organisation should play their part.

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