Sunak vows to tackle Britain’s ‘sick note culture’

TORIES TO OVERHAUL BENEFITS SYSTEM

THE Prime Minister has unveiled a package of welfare reform measures to tackle the unprecedented rise in economic inactivity and ensure the benefits system is ‘better targeted at those who need it most’.

  • PM to announce plans to overhaul benefits system to ensure people who are fit to work aren’t left behind on benefits 
  • Fit note system to be reviewed after 11 million fit notes issued last year with 94% written off as unfit to work
  • Comes amid unprecedented rise in inactivity due to long term sickness with latest figures showing almost a third of working age adults are inactive

The Prime Minister’s new plan for welfare will end Britain’s “sick note culture”, which has resulted in a significant rise in people being unnecessarily written off work and parked on welfare. 

It comes amid concerns that the fit note system has opened the floodgates for millions of people to be written off work and into welfare without getting the right support and treatment they might need to help them stay in work.

Data recently published by the NHS shows almost 11 million fit notes were issued last year, with an overwhelming 94% of those signed “not fit for work”. A large proportion of these are repeat fit notes which are issued without any advice, resulting in a missed opportunity to help people get the appropriate support they may need to remain in work.

To address this, the Prime Minister yesterday announced a review of the fit note system to stop people being written off as “not fit for work” by default and instead design a new system where each fit note conversation focuses on what people can do with the right support in place, rather than what they can’t do.

As part of this, the government will consider shifting the responsibility for issuing the fit note away from already stretched GPs, towards specialist work and health professionals who have the dedicated time and expertise to provide an objective assessment of someone’s ability to work and the tailored support they may need.   

A call for evidence will be published later today to seek responses from a diverse range of perspectives, including those with lived experiences, healthcare professionals and employers, both on how the current process works and how it can better support people with health conditions to start, stay, and succeed in work.

The Prime Minister said: “We don’t just need to change the sick note, we need to change the sick note culture so the default becomes what work you can do – not what you can’t.  

“Building on the pilots we’ve already started we’re going to design a new system where people have easy and rapid access to specialised work and health support to help them back to work from the very first Fit Note conversation.  

“We’re also going to test shifting the responsibility for assessment from GPs and giving it to specialist work and health professionals who have the dedicated time to provide an objective assessment of someone’s ability to work and the tailored support they need to do so.”  

Setting out his vision for a “new welfare settlement for Britain”, the Prime Minister outlined the new challenges that have emerged since the pandemic particularly the unprecedented rise in inactivity and how the government plans to tackle them.

Before the pandemic, we had the second lowest inactivity rate in the G7, lower than France, Germany, Italy, USA and Canada. But since the pandemic, a significant number of working aged people have become inactive due to long term sickness which has in large part been driven by mental health conditions.

Latest figures from the Office for National Statistics suggest there are currently 2.8 million people who are ‘economically inactive’ due to long-term sickness, a near-record high. Of those inactive due to long term sickness at the start of last year, 53% reported that they had depression, bad nerves or anxiety.

This is also driving an unsustainable increase in welfare spending as more people claiming disability benefits are now assessed as having anxiety or depression as their main condition. 

Since the pandemic, total spending on working age disability and ill-health benefits increased by almost two-thirds from £42.3 billion to £69 billion and we now spend more on these benefits than our core schools’ budget or on policing.

The fit note process is often the first step to someone falling out of work and acts as a gateway towards some ill health and disability benefit assessments. There is also clear evidence that the longer someone is out of work, the lower the likelihood that they return to work – further exacerbating the rise in inactivity.

The Prime Minister made the case that we need to be more ambitious about how we help people, particularly with mental health conditions, back into work and ensure they are not left behind on the benefits system.

The Prime Minister added: “We should see it as a sign of progress that people can talk openly about mental health conditions in a way that only a few years ago would’ve been unthinkable, and I will never dismiss or downplay the illnesses people have. 

“But just as it would be wrong to dismiss this growing trend, so it would be wrong merely to sit back and accept it because it’s too hard; or too controversial; or for fear of causing offence. Doing so, would let down many of the people our welfare system was designed to help. 

“Because if you believe as I do, that work gives you the chance not just to earn but to contribute, to belong, to overcome feelings of loneliness and social isolation and if you believe, as I do, the growing body of evidence that good work can actually improve mental and physical health…

“…then it becomes clear: we need to be more ambitious about helping people back to work and more honest about the risk of over-medicalising the everyday challenges and worries of life.” 

 Yesterday’s fit note review builds on the significant steps the UK Government has taken so far to break down barriers to work and tackle inactivity.

This includes through our £2.5 billion Back to Work Plan which is already helping over a million people, including those with mental health conditions, break down barriers to work by expanding access to mental health services and putting an additional 384,000 people through NHS Talking Therapies.

The new WorkWell pilot is also being rolled out and will support almost 60,000 long-term sick or disabled people to start, stay and succeed in work once it has gone live in approximately 15 areas across England.

The WorkWell services provides a single, joined-up assessment and gateway into local employment support services, to help people manage their health conditions and get back to work sooner. This is part of an ambitious programme to support disabled people and people with health conditions to start, stay and succeed in work. 

DWP are also testing reforms of the fit note process to integrate it more closely with WorkWell, enabling the people who need it to have a work and health conversation, with a single, joined-up assessment and gateway into local employment support services.

It will also complement the role of Occupational Health in ensuring employers understand and benefit from more expert work and health support to retain and support those in work.

The fit note call for evidence is part of five key reforms the Prime Minister outlined in his speech to put work at the heart of welfare and modernise the welfare system to ensure it is fit for the future.

An estimated £5 billion in support has been paid throughout Winter to help families with energy costs

Nearly £5 billion of support has been paid to help households with their energy bills this winter  

  • Over £4 billion was paid to pensioners between November and March through the Winter Fuel Payment and Pensioner Cost of Living Payment   
  • An estimated £550 million has been spent this winter as part of the Warm Home Discount to support three million households   
  • Over 1.1 million £25 Cold Weather Payments have been made to households in England and Wales

Halving inflation has ensured everyone’s money goes further, however we remain committed to supporting households across the country with 11.8 million pensioners receiving up to £600 in Winter Fuel Payments and Pensioner Cost of Living Payments.

On top of this, the Department for Work and Pensions (DWP) has today estimated over 1.1 million Cold Weather Payments worth £29.6 million were paid out from November until the end of March – with over £9 million of this going to low-income pensioners receiving Pension Credit.    

Further support was also made available through the Warm Home Discount – to support three million households at risk of fuel poverty, allowing families to keep costs down and more money in their pockets. The Government expects partnered energy suppliers to have spent around £550 million this winter across Great Britain, through direct bill rebates as well other financial and energy efficiency support. 

This support was needed to protect everyday Brits from the inflationary impact of Putin’s illegal war in Ukraine – helping millions of people get through the winter. Now – with energy bills dropping, wages rising, and taxes being slashed – people are set to have more cash in their pocket to help fire up the economy and beckon in more growth.   

We have turned a corner after the shocks of the past few years, and we are in a new economic moment and 2024 will prove to be the year that the economy bounces back.  

Minister for Pensions, Paul Maynard said:  “This Government’s actions have provided vital support to pensioners most in need.

“Halving inflation has helped everyone’s finances, and we remain committed to protecting our older loved ones across the country, with 11.8 million pensioners receiving up to £600 in Winter Fuel and Pensioner Cost of Living Payments. 

“And we are uprating the State Pension further from next week, meaning the full yearly basic State Pension will be £3,700 higher than in 2010, whilst the full rate of the New State Pension will rise above £11,500 a year.”

From this week people will start to see an increase in their Local Housing Allowance rates – benefitting some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year on average. This puts more money in the pockets of the lowest earners – giving them more spending power to boost their local economy.  

The UK Government is delivering £108 billion of support over 2022-2025 – worth an average £3,800 per household – and will continue to drive down inflation to help everyone’s money go further.    

These measures are boosted in April with Universal Credit and other benefits rising in line with inflation by 6.7 percent, and the State Pension increasing by an inflation-busting 8.5 percent – making sure that targeted support is going to those who need it most.  

MPs call for statutory sick pay reform to address inadequate financial support for workers most in need

Statutory sick pay (SSP) is failing to provide enough support for those who most need financial help when ill and should be increased and made more widely available, MPs say today.

The report from the Work and Pensions Committee says that a modest increase to SSP in line with Statutory Maternity Pay would strike a reasonable balance between providing extra financial support and not placing excessive extra costs on businesses. It also says that all employees should be eligible for SSP, not just those earning above the lower earnings limit.

Rates of sickness absence and ill health have increased in recent years, with a record 185.6 million working days lost to sickness or injury in 2022. During its inquiry, the Committee heard the current system of SSP was an insufficient safety net for those who relied on it, and no use at all to those who were not eligible.

Despite consultations by previous governments, no permanent changes have been forthcoming. While the Committee understands why the Government decided that the Covid-19 pandemic was the wrong time to introduce changes, due to the immediate additional costs on employers, it finds that this argument is now less valid.

In addition to recommending changes to the SSP rate and eligibility, the report calls on the Government to amend legislation to enable SSP to be paid in combination with usual wages in order to encourage phased returns to work.

On the cost to businesses, the report concludes that the overall impact of SSP reform is difficult to predict, but even if they did not result in lower levels of sickness absence, larger firms would be able to absorb the costs. It says this would not be true of smaller businesses, however, and calls on the Government to consult with small and medium-sized businesses on the design of a small business rebate for SSP.

Finally, the report says that the Government should establish a contributory sick pay scheme for the self-employed to increase support during periods of illness.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Statutory sick pay is failing in its primary purpose to act as a safety net for workers who most need financial help during illness.

“With the country continuing to face high rates of sickness absence, the Government can no longer afford to keep kicking the can down the road on reform. The Committee’s proposals strike the right balance between widening and strengthening support and not placing excessive burdens on business.

“A growing number of workers are now classified as self-employed and a new contributory sick pay scheme for self-employed people would be a welcome step towards ensuring they are they are no worse off financially during periods of sickness than employees on SSP.”

A full list of the Committee’s conclusions and recommendations is available on Pages 34–36 of the report.

Commenting on the publication of a Work and Pensions Committee report on whether the government should reform statutory sick pay to provide more financial support to low-paid employees, TUC General Secretary Paul Nowak said: “The Covid-19 pandemic showed that our sick pay system is in desperate need of reform. 

“It beggars belief that ministers have done nothing to fix sick pay since. 

“It’s a disgrace that so many low-paid and insecure workers up and down the country – most of them women – have to go without financial support when sick. 

“The committee is right that ministers urgently need to remove the lower earnings limit and raise the rate of sick pay. 

“Wider reform is also needed to remove the three days people must wait before they get any sick pay at all.  

“Working people deserve better. 

“It’s time for a new deal for workers, like Labour is proposing – which includes stronger sick pay and a ban on zero hours contracts.” 

Analysis published by the TUC in January revealed that 1.3 million people do not earn enough to qualify for statutory sick pay – and 70% are women. 

And zero-hours contract workers are eight times more likely than those on secure contracts (30.3% compared to 3.6%) to miss out on statutory sick pay because they don’t earn enough to qualify. 

MPs call for new regulatory approach to secure thriving future for defined benefit pension schemes

Changes to proposed regulation and improvements in governance standards are urgently needed to ensure private sector defined benefit (DB) pension schemes remain an active and thriving part of the pensions landscape and work in the best interest of scheme members, MPs say today.

The Work and Pensions Committee report concludes that despite a steady decline in number in recent years, DB pension schemes are still of critical importance to both savers and the UK economy.

It warns however that two decades of regulatory and policy caution from DWP and The Pensions Regulator (TPR) have led to a low-risk approach to investment that threatens to inadvertently finish off the few remaining DB schemes still open to new members.

With an improvement in funding levels over the past decade presenting new challenges and opportunities for schemes, the report calls for a fresh approach both to funding regulation and the treatment of surpluses in pension and compensation schemes.

Among recommendations on the latter, the report calls for DWP and TPR to look at ways of ensuring the reasonable expectations of scheme members for benefit enhancement are met where there has been a history of discretionary increases.

On the new funding regime proposed by the Government to come into force in September, the Committee’s inquiry heard concerns that open schemes would be forced to de-risk unnecessarily, potentially leading to premature closure.

The Committee calls for the Government to address such concerns in the final version of the Funding Code and for TPR’s objective to protect the Pension Protection Fund to be replaced with a new duty to protect future, as well as past, service benefits.

PPF reserves now stand at £12 billion and the report calls for legislation to allow the levy to be reduced to zero and for compensation levels to be improved.

To encourage better governance, the Committee welcomes the introduction of a trustee register to improve TPR oversight. The report notes TPR’s view that consolidation, including through pension Superfunds, is one of the main ways to improve governance, and calls for the required legislation as soon as possible.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Defined benefit pension schemes are hugely important to savers planning for a comfortable retirement and for the UK economy.

“The improvement in scheme funding levels presents opportunities for both to benefit, but a new approach to regulation and governance is needed to protect the best interest of scheme members and allow still open schemes to thrive.

“The flexibility afforded by the much-improved financial position of the PPF, which we applaud, gives the Government an opportunity to ensure open schemes are not hindered by overly cautious restrictions imposed by regulations.

“While many trustee boards operate to high standards, new standards for trustees can foster confidence that this is the case across DB schemes.”

The report follows up on some of the points raised during the Committee’s previous inquiry into DB pensions with Liability Driven Investments, which examined the events of autumn 2022. The Committee heard that a repeat of the events was now unlikely given the steps taken to improve resilience.

A full list of the Committee’s conclusions and recommendations is available on Pp 54–58 of the report.

Justice for WASPI women?

comprehensive investigation by the Parliamentary and Health Service Ombudsman has found that thousands of women may have been affected by DWP’s failure to adequately inform them that the State Pension age had changed.  

The 1995 Pensions Act and subsequent legislation raised the State Pension age for women born on or after 6 April 1950. The Parliamentary and Health Servive Ombudsman investigated complaints that, since 1995, DWP has failed to provide accurate, adequate and timely information about areas of State Pension reform. 

PHSO published stage one of their investigation in July 2021. It found failings in the way DWP communicated changes to women’s State Pension age. 

This final report combines stages two and three of the investigation. It both considers the injustice resulting from the maladministration we identified during stage one and also sets out our thinking about remedy. 

To date, DWP has not acknowledged its failings nor put things right for those women affected. DWP has also failed to offer any apology or explanation for its failings and has indicated it will not compensate women affected by its failure. 

DWP’s handling of the changes meant some women lost opportunities to make informed decisions about their finances. It diminished their sense of personal autonomy and financial control. 

PHSO Chief Executive Rebecca Hilsenrath, said: “The UK’s national Ombudsman has made a finding of failings by DWP in this case and has ruled that the women affected are owed compensation. DWP has clearly indicated that it will refuse to comply. This is unacceptable. The Department must do the right thing and it must be held to account for failure to do so.   

“Complainants should not have to wait and see whether DWP will take action to rectify its failings. Given the significant concerns we have that it will fail to act on our findings and given the need to make things right for the affected women as soon as possible, we have proactively asked Parliament to intervene and hold the Department to account.

“Parliament now needs to act swiftly, and make sure a compensation scheme is established. We think this will provide women with the quickest route to remedy.”   

The investigation has been complex and involved analysing thousands of pages of evidence. On a number of occasions, parties were allowed additional time to consider and comment on our views.

PHSO also agreed last year to look again at part of their stage two findings following a legal challenge. All of this resulted to delays in the final report. 

The report has been laid before Parliament, with a request that it looks at PHSO’s findings and intervenes to agree a remedy for the women affected.

While Parliament will make its own decisions about rectifying the injustice, PHSO have shared what they consider to be an appropriate remedy.

In addition to paying compensation, PHSO have made it clear that DWP should acknowledge its failings and apologise for the impact it has had on complainants and others similarly affected. 

The Ombudsman has received a series of complaints relating to how well DWP has communicated a variety of State Pension reforms. Concerns about communication of changes to the State Pension age constitute only one such area of complaint.

The Department has also declined to act on other issues that have been consistently highlighted in complaints. A report from the Ombudsman later in the year will set these out. 

It’s understood that over three million women are affected. So far, neither Conservative nor Labour politicians have committed to paying compensation,

Scottish Adult Disability Living Allowance planned

Like-for-like benefit to support seamless transition

Plans for a Scottish Adult Disability Living Allowance, a new benefit to provide continued support to around 66,000 adults with a disability or long-term health condition, have been unveiled.

Under new proposals, eligible people who receive Disability Living Allowance (DLA) through the UK Government’s Department for Work and Pensions would have their award transferred automatically to the new Scottish benefit. They would then have the opportunity to apply for Adult Disability Payment if they choose.

Legislation to create the ‘closed’ benefit – for existing recipients of the Disability Living Allowance that it supersedes – will be laid in the Scottish Parliament this year.

Social Justice Secretary Shirley-Anne Somerville said: “I’m pleased that we can progress plans to bring forward legislation to create a Scottish Adult Disability Living Allowance and give people the opportunity to remain on this benefit for as long as they are eligible.

“Once transferred, people can continue to be paid Scottish Adult Disability Allowance or apply for our flagship Adult Disability Payment if they prefer.

“Around 137,000 people are now receiving our Adult Disability Payment and it has provided almost £462 million to disabled people since it was launched in 2022.”

Scottish Adult Disability Living Allowance will be a ‘closed’ benefit, available only to those whose awards are transferred onto it and not open to new applicants – who should instead apply for Adult Disability Payment.

Under these proposals, eligible people who receive Disability Living Allowance through the UK Department for Work and Pensions would have their award transferred automatically to the Scottish payment.

Carer’s Allowance awards start moving to Carer Support Payment in Scotland

Work to transfer the awards of people in Scotland from Carer’s Allowance to Carer Support Payment has begun.

Carer’s Allowance, paid by the Department for Work and Pensions (DWP), is being replaced by Carer Support Payment paid by Social Security Scotland.

The transfer from Carer’s Allowance to Carer Support Payment will happen gradually with all awards expected to be transferred by Spring 2025.

People do not need to do anything as their award will transfer automatically. The amount they receive will not change.

Both the DWP and Social Security Scotland will write to people in advance to let them know that their award will be transferring.

Carers should continue to report any changes in their circumstances to the DWP until they receive a letter from Social Security Scotland telling them their award has transferred.

Carer Support Payment provides £76.75 a week to eligible carers. The benefit is available to new applicants in Dundee City, Perth and Kinross and the Western Isles.

Carers who live outside of those areas can apply for Carer’s Allowance from the Department for Work and Pensions (DWP).

Carer Support Payment will be available in more areas from later in 2024 and across Scotland by Autumn 2024.

More information is available at mygov.scot/carer-support-payment.

UK Government unveils new laws to cut migration and tackle care worker visa abuse

Reforms to restrict care workers from bringing family members are now in force, while care providers are required to register if they are sponsoring migrants

New rules to radically cut net migration and tackle visa abuse are now in force as part of the government’s plan to bring down unsustainable levels of legal migration. 

Care workers will now be restricted from bringing dependants, after a disproportionate 120,000 dependants accompanied 100,000 workers on the route last year.  

Care providers in England acting as sponsors for migrants will also be required to register with the Care Quality Commission (CQC) – the industry regulator for Health and Social Care – in order to crack down on worker exploitation and abuse within the sector. 

It forms part of a wider package of measures, which is being implemented as soon as possible, which means a total of 300,000 people who were eligible to come to the UK last year would now not be able to do so.

Home Secretary, James Cleverly MP, said: “Care workers make an incredible contribution to our society, taking care of our loved ones in times of need. But we cannot justify inaction in the face of clear abuse, manipulation of our immigration system and unsustainable migration numbers. 

“It is neither right nor fair to allow this unacceptable situation to continue. We promised the British people action, and we will not rest until we have delivered on our commitment to bring numbers down substantially.  

“Our plan is robust but fair – protecting British workers while ensuring the very best international talent can work and study here, to add value to our society and grow the economy.”

There is clear evidence that care workers have been offered visas under false pretences, travelling thousands of miles for jobs that simply don’t exist or to be paid far below the minimum wage required for their work, exploiting them while undercutting British workers. 

These changes come into force as the government is set to lay rules in Parliament later this week (14 March) to prevent the continued undercutting of British workers, which includes raising the salary threshold that a skilled worker must meet in order to get a visa and removing the 20% ‘going-rate’ discount for migrant workers in shortage occupations. 

Minister for Social Care, Helen Whately MP, said: “International care workers make an invaluable contribution caring for our loved ones, but international recruitment and more immigration are not long-term solutions to our social care needs. These rules provide a more ethical and sustainable approach.

“We are boosting our homegrown workforce by reforming social care careers. These include the first ever national career path for care workers and a new care qualification. 

“Our reforms will grow the domestic workforce and build on our success over the last year that saw more people working in social care, fewer vacancies and lower staff turnover.”

The Home Secretary will also, today, commission a review of the graduate route for international students to prevent abuse, protect the integrity and quality of UK higher education, and ensure it works in the best interests of the UK.

He will ask the Migration Advisory Committee (MAC) to ensure that demand for the graduate route, through which a total of 175,872 visas have been granted since it was established, is fit for purpose and focused on attracting the best and brightest to the UK.

This follows concerns raised after analysis by the MAC revealed that the number of international postgraduate students attending institutions with the lowest UCAS entry requirements has increased by over 250% between 2018 and 2022.

This follows reforms to student visas which came into force at the start of January, ending the ability of nearly all postgraduate students to bring dependants to the UK. 

The government expects to see a drastic fall in student dependant applications this year, with early indications already of this downward trend.

In further changes, the Shortage Occupation List (SOL) will be abolished, to be replaced with a new Immigration Salary List on 4 April. This follows a recommendation from the independent MAC, which has also advised the government on which occupations should be temporarily added to the new list initially.  

The UK government has been clear that roles should only be included where they are skilled and in shortage, and that no sector should be permanently reliant on immigration. Inclusion on the list must not serve to reduce pay and undermine the recruitment of British workers. 

From 4 April, the minimum salary required for those arriving on the Skilled Worker visa will increase from £26,200 to £38,700 – a 48% increase.

This will further drive down numbers, reduce pressure on public services and prevent the undercutting of British workers by employers who look to recruit cheap labour from overseas.

The UK government’s ‘robust’ approach will prioritise the most talented and highly-skilled people from abroad who will add value and contribute significantly to growth of the economy, whilst encouraging employers to invest in training, upskilling, and recruiting domestic workers. 

The minimum income requirement for family visas will also rise, starting at £29,000 from 11 April. By early 2025 this will be increased to £38,700, helping to ensure dependants brought to the UK are supported financially. 

The UK government has been clear that immigration is not the long-term answer to social care needs and care providers should hire more British workers. The Department for Health and Social Care is leading a programme of work to grow and support the domestic social care workforce. This includes better training, clearer career paths and improved job prospects through a new accredited qualification.

The Department for Work and Pensions is taking decisive action in one of the biggest employment interventions in a generation through its £2.5 billion Back to Work plan, which will help 1.1 million people who are long-term unemployed or long-term sick or disabled break down barriers to work.

Chancellor backs British business with pension fund reforms

  • Pension funds to publicly disclosure how much they invest in UK businesses Vs those overseas.
  • Schemes performing poorly for savers won’t be allowed to take on new business from employers.
  • Changes are part of the government’s plan to improve outcomes for savers and consolidate the pensions market.

The Chancellor has today (2 March) announced pension fund reforms as a further step in the government’s plan to boost British business and increase returns for savers. This includes requirements for Defined Contribution (DC) pension funds to publicly disclosure their level of investment in the UK.

The government’s auto enrolment rollout has driven a huge growth in the amount of investment entering UK pension funds, from less than £90 billion in 2012 to around £116 billion in 2022. However, the disclosure requirements for DC pension funds are currently inconsistent across the market and do not require a breakdown of UK investments, sometimes making it difficult for policymakers and savers to understand where this money is invested.

By ensuring pension funds publicly disclose where they invest and the returns they offer, it will make it possible for employers and savers to compare schemes and make informed choices. The government is embarking on Value for Money (VFM) pension fund reforms to improve outcomes for savers and consolidate the DC pensions market. The reforms will ensure that pension managers are focused on securing good returns for savers. 

Under the plans:  

  • By 2027 DC pension funds across the market will disclose their levels of investment in British businesses, as well as their costs and net investment returns. 
  • Pension funds will be required to publicly compare their performance data against competitor schemes, including at least two schemes managing at least £10 billion in assets. 
  • Schemes performing poorly for savers won’t be allowed to take on new business from employers, with The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) having a full range of intervention powers. 

The plans are subject to a consultation by the Financial Conduct Authority and build on the Government’s Mansion House compact, that encouraged pension funds to invest at least 5% of their assets in unlisted equity. 

Chancellor Jeremy Hunt said: “We have already started on a path to drive growth, unlock capital for our most promising companies and improve outcomes for savers – and these new rules mean employers and savers can see how their money is invested and how the returns compare to other schemes.

“British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”

Secretary of State for Work and Pensions, Mel Stride MP, said: “The incredible success of automatic enrolment has opened up a huge opportunity to grow the economy, boost British businesses and fuel our futures. It has helped us transform the pensions landscape over the last decade.  

“And our Value for Money framework will take this one step further, focusing pension managers on their number one priority – securing the best possible returns for savers – as well as providing a boost to the wider economy.”  

Julia Hoggett, CEO of London Stock Exchange plc and Chair of the Capital Markets Industry Taskforce, said: “Pension holders should know how much is being invested in equities in their home market.

“Investing in UK companies ultimately benefits those companies and the returns they are delivering, which supports the economy and the country in which pension holders live, to everyone’s benefit and in everyone’s interest.” 

James Ashton, Quoted Companies Alliance chief executive, said: “There is huge upside to aligning the UK’s financial assets with innovative homegrown ventures that could be tomorrow’s world beaters.

“We welcome these new disclosures and hope they are the first step to many UK pension funds discovering the numerous high-potential companies whose shares are traded on their doorstep.” 

Chris Hayward, Policy Chairman of the City of London Corporation, said: “The Mansion House Compact aims to channel long-term capital from pension funds into growth companies.

“It will support high-growth companies to start, scale and stay in the UK. We welcome the Government’s action to support this objective which will turn the dial to drive investment into UK businesses. It is vital that the pension ecosystem focusses on value for money and long-term returns for savers.” 

Landmark review calls on employers to boost support for autistic people

A bold new government-backed review has set out a vision for workplace culture changes to support autistic people to start and stay in work

  • Review sets out 19 recommendations to support more autistic people to start, stay and succeed in work.
  • Despite most autistic people wanting to work, just 3 in 10 are currently in employment due to stigma and lack of understanding of their needs.
  • More neuro-inclusivity in the workplace can help fill vacancies and grow the economy by unlocking the potential of thousands more people.

A bold new government-backed review has set out a vision for workplace culture changes to support autistic people to start and stay in work.   

DWP figures show only around 30 percent of working age autistic people are in employment, compared with half of all disabled people and 8 in 10 non-disabled people, despite the majority saying they would like to be employed.   

Commissioned by Secretary of State for Work and Pensions Mel Stride and led by Sir Robert Buckland KC, the Review’s 19 recommendations for businesses and government include:  

  • signing up for the Autistica Neurodiversity Employers Index to access guidance on designing inclusive processes and procedures
  • encouraging career progression by developing packages of training focused on autistic staff
  • improving recruitment by ensuring careers advisers can provide appropriate advice to autistic jobseekers
  • supporting autistic people who are already in the workplace by producing “autism design guides” to create appropriate premises, furnishings and equipment
  • working with software suppliers to develop IT systems that meet autistic people’s needs.

The Buckland Review of Autism Employment was supported by charity Autistica and includes the views of hundreds of employers and autistic people.   

It sets out how businesses and government can work together over the next five years – whether that is showcasing the successes of autism employment, developing pilot programmes in national and multinational companies, or providing tailored support for autistic staff at work.  

Secretary of State for Work and Pensions, Mel Stride MP, said: “I want autistic people to have every opportunity to benefit from work, and recognise that businesses and government must come together if we are to create the cultural change needed to move the dial. 

“Backed by the extra employment support provided through our £2.5 billion Back to Work Plan, this report provides employers with practical and inexpensive steps to open up workplaces to autistic people, boost employment rates and, above all, change autistic people’s lives.”

Sir Robert Buckland KC MP said: “It has been a tremendous privilege to compile this report, and to hear from hundreds of autistic people about their experiences. This is all about them, and we couldn’t have done it without their help.

“The review can make a truly radical difference to the lives of autistic people and their families. I call on employers and government to lead this change and make these recommendations a reality.”

It is all part of the Government’s long-term plan to build a stronger economy – which has seen unemployment compared to 2010 decline, with four million additional people in work. 

The Government has already succeeded in getting one million more disabled people into employment by 2027, five years ahead of schedule, with tailored support helping claimants realise their potential.  

Access to Work grants worth up to £66,000 made working easier for nearly 50,000 people last year. The Government’s flagship Universal Support programme is set to provide up to 25,000 people with highly personalised employment support, working closely with employers to navigate any workplace adjustments required to accommodate individual needs.  

Minister for Disabled People, Health and Work, Mims Davies MP, said: “There are so many benefits and positives autistic people can bring to the workplace, and this is matched by what employment can bring to them. We must make sure they get the work opportunities they want and deserve. 

“This welcome and important review will help ensure autistic people can thrive and progress in the labour market. I am keen employers get behind these recommendations, and partner with us to truly make our workforce more inclusive and welcoming.”

Minister for Social Care, Helen Whately MP, said: “We want autistic people to have equal opportunities to flourish in society and contribute to the economy.

“For too long there have been too many barriers for them in the workplace; this review is a major step to changing that. 

“This builds on our five-year autism strategy and shows our continued commitment to helping autistic people are able to lead happier, healthier and more fulfilling lives.”

The review is the latest milestone in the Government’s mission to make the UK the most accessible place in the world, following the publication of the Disability Action Plan earlier this month, the launch of the Lilac Review, which will investigate the barriers disabled entrepreneurs face, and the longer-term National Disability Strategy, which will transform disabled people’s everyday lives for the better.  

It also builds on the Government’s employment and welfare reforms – including the new £2.5 billion Back to Work Plan which will help thousands more disabled people and people with health conditions to start and thrive in work.