Recently, we explored the aims of Labour’s New Deal for Working People; reportedly set to action “the biggest upgrade to workers’ rights in a generation.”
As the Party passed the one-month mark of their electoral victory, we reached out to request insight from MP Nadia Whittome, Labour representative for Nottingham East. In her response, Whittome shared:
“Labour’s New Deal for Working People is designed to improve people’s work, their lives and the wider economy. These changes aim to ensure that more people have security in their work, that work fits better with their other responsibilities such as caring for children or older relatives, and that wages are boosted, delivering better living standards and more economic growth.
With people in Nottingham having some of the lowest incomes in the country, these changes are particularly important for our city.”
At the time of their win, Labour’s proposals were slated for implementation within 100 days. Now, with around a third of this time already behind us, many are anticipating the influence these changes will have on the way we work. To expand upon the key points highlighted by Whittome:
1. Increased job security: Updated employment laws; such as day one rights and the end of fire-and-rehire practices, are set to strengthen job security. Financial reporting will also be scrutinised by the new Audit, Reporting and Governance Authority (ARGA) watchdog, to ensure accuracy and avoid large-scale job loss due to corporate failures.
2. Working around responsibilities: Labour’s May manifesto stated their aim for flexible working to become the default from day one of employment (where feasible). This poses a significant benefit for working parents and caregivers. With Whittome’s previous experience as a care worker, it’s likely that she possesses valuable knowledge of the support needed in this area.
3. Boost to wages: Labour have proposed that, for the first time, the National Living Wage could take the cost of living into account. Working alongside the Single Enforcement Body and HMRC, penalties will be issued to employers who aren’t compliant.
4. Economic growth: In his recent speech, King Charles III announced the revival of the draft Audit Reform Bill; one of several initiatives to “prioritise wealth creation for all communities.” In tandem with other initiatives, including Labour’s plan to revitalise the high street, it appears that economic growth will be encouraged through multiple approaches.
In 2023, the wider East Midlands region was found to have the second highest rate of low paid jobs, at 15.7%. In her conclusion, Whittome highlighted that this remains true for workers across Nottingham. Due to our origins in the city, at Distinct we are particularly interested to see the effects of Labour’s New Deal in our local community.
Which roles will be in demand following Labour’s New Deal?
Labour’s updates to employment law will enact change across all UK sectors. Therefore, professionals with skills that can help businesses navigate this transitional period will become highly sought after. In particular, experienced and senior-level workers within finance and HR with prowess such as:
- The creation and distribution of new contracts
- Making adjustments for flexible working
- Financial reporting
- Ensuring that all financial data is accurate to withstand scrutiny during audits.
In the coming months, employers will need to reassess many of their policies and processes to ensure compliance. For example, working with finance teams to ensure staff pay reflects the new National Living Wage, and liaising with HR to update staff on their rights.
Previously, we explored the ways in which the Labour Party’s updates to employment law will greatly increase the need for HR expertise, and how the draft Audit Reform Bill will further heighten the demand for accounting professionals. Visit our discussions to learn more.
Work with Distinct
Labour’s manifesto aims to evolve many aspects of working culture. As such, businesses across the UK may need to prepare and adapt. As a leading recruitment agency, we are well placed to support employers of all sizes throughout this period of change; matching them with exceptional professionals to aid a smooth transition.
To discuss upcoming changes to employment law – and your hiring needs, contact us today.
