King's Speech 2024

This morning, the King donned his cloak and State Crown and made his way into the House of Lords to deliver the King’s Speech. The new Government has made no secret of their desire to hit the ground running – proving this by packing this speech with 40 legislative bills – compared to 21 in the King’s Speech last year.  

This speech outlined several significant proposals that will, in time, impact our industry. While many of the proposals were expected, there is still plenty for recruiters to consider. Key among the new bills are a long-awaited Employment Rights Bill, legislation for the creation of Skills England, reform of the Apprenticeship Levy, and initiatives to support fair wages and working conditions. The Government's focus on economic growth and partnership with businesses is also welcomed. 

The Employment Rights Bill  

This is likely the most significant piece of legislation for our industry, introducing several changes. A ban on “exploitative” zero-hour contracts, the establishment of a single enforcement body – to be called the Fair Work Agency, enhanced ‘Day One’ rights for workers, and the prohibition of fire and rehire practices, are all proposed. In the run up to today, we have met with the now Deputy Prime Minister, Angela Rayner, and several officials to inform the proposals. And there are some shifts in tone, for example, from an initial plan to ban all zero-hour contracts to targeting only those deemed ‘exploitative’. It was also good to see a firm commitment to ongoing engagement with businesses as we requested. Introducing a single status of worker, which would be a pivotal issue for the recruitment industry, does not appear in the government paper released after the speech. We will continue to press for details on plans here. 

A new Industrial Strategy 

The formation of an Industrial Strategy Council is welcome. This Council will play a crucial role in developing a comprehensive assessment of current and future skills needs, hopefully ensuring that the industrial strategy is well-informed and effective. For the recruitment industry, we want to see a more strategic and coordinated approach to workforce planning, a long-called for request from the REC. As with other measures in the King’s Speech, we are talking with the Department for Business and Trade (DBT) about the process and next steps, including membership criteria for the Industrial Strategy Council.  

Skills policy and the apprenticeship levy 

The establishment of Skills England is a move that aligns with REC's calls for a better skills system. This new body aims to unify businesses, education providers, unions, and the Government to ensure the workforce is equipped with the skills required by the economy. For our members, we want to see greater alignment between training programmes and market needs, which has the potential to ease labour and skills shortages. 

The reform of the Apprenticeship Levy, now to be termed the ‘Growth and Skills Levy’, is another positive step. We have been long-time critics of the existing levy and we found widespread support for reform in research we conducted last year. The reform aims to provide businesses with greater flexibility in how they use levy funds. Our focus now is on making sure that Labour's Growth and Skills Levy enables agency workers to access training to further their professional development, which in turn will help boost workforce productivity. 

National minimum wage and pay changes 

The Government have committed to a “genuine” living wage and the removal of age bands. While this reflects concerns from individuals about the cost of living, increased costs for business must also be a consideration. It is crucial for the Government to work closely with all stakeholders to implement these reforms in a way that balances worker benefits with business need. The last two years have seen large inflation-busting pay rises, and would caution against further squeezes on business that lead to them ceasing operations.  

Education 

The Government's plan to hire 6,500 more teachers is an ambitious goal that addresses a critical recruitment need in the education sector. However, the implementation of this plan raises questions about where these teachers will come from, given ongoing recruitment and retention challenges. 

Equality Bill 

The draft Equality (Race and Disability) Bill will introduce mandatory ethnicity and disability pay reporting for larger employers (usually defined as those with 250+ employees), aiming to address pay disparities. While this is a step forward in ensuring equal pay, it also means additional reporting requirements for businesses. REC members will need to prepare for these changes accordingly.  

Addressing economic inactivity 

Although the King's Speech did not provide details on the Back to Work Plan Bill, there are implications for our industry. This Bill is expected to focus on enhancing employment opportunities and reducing barriers to work, particularly for disadvantaged groups. For the recruitment sector, this means there should be increased support for getting people back into work, which could lead to a larger pool of job candidates – but the specifics are yet to be released. We’ll be sure to share insights from our experience of Restart and other back to work schemes.  

The King's Speech 2024 lays out an ambitious agenda. Successful implementation will depend on a strong and collaborative approach between the Government and business. The focus should be on improving the daily lives of workers while helping businesses grow. Rushed reforms could do more harm than good, so it is essential that the government engages in meaningful dialogue with industry to ensure that the changes are practical and beneficial for all.