The Chancellor of the Exchequer made his autumn statement on 22 November, addressing several matters which impact employees. Three Yorkshire-based employment experts have provided insights on the primary highlights, including the rights of disabled workers, national minimum wage increases and apprenticeships.
The experts are:
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Jodie Hill, founder and managing partner at Leeds-based Thrive Law
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Oliver Allanach, solicitor at Gordons LLP
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Tom Moyes, joint head of employment at Blacks Solicitors
Disabled workers required to work or risk their benefits
Workers with disabilities may soon face a challenging ultimatum, as UK government minister Laura Trott proposes a “return to work” mandate. According to The Guardian, Trott recommends that individuals with disabilities either embrace remote work or risk losing their benefits. As part of a broader welfare system reform, this initiative could lead to a reduction in benefits amounting to £4,680 per year for those unable to secure remote employment.
Legal expert Jodie Hill, commenting on this proposal, expressed reservations about the practicality of such a requirement. She emphasised the complexity of distinguishing between disabled individuals fit for work, those fit with adjustments, and those simply too unwell to work due to mental health or other long-term conditions. Hill stated, “It’s difficult to see how this requirement would fit practically; there is a difference between employees who are disabled but fit for work, or fit for work with adjustments, or those who are simply not well enough to work.”
Hill also highlighted the lack of available remote jobs for disabled individuals and the insufficient awareness among employers regarding the need for reasonable adjustments to support disabled employees. She added, “We are also concerned that the requirement for disabled employees to work remotely could be causing division or isolating disabled employees; and could cause further detriment to wellbeing where an employee is mentally not fit for work.”
According to Hill, the focus should be on assisting disabled individuals back into the workforce with appropriate adjustments rather than penalising those unable to work. In contrast, non-disabled individuals may face mandatory participation in a ‘work search’ program, with failure to engage potentially resulting in the withdrawal of their benefits after 18 months. The proposed policy raises broader questions about the balance between incentivising employment and ensuring the well-being of individuals with disabilities in the workforce.
Increases to national minimum wage
As of 1 April 2024, the national minimum wage (NMW) will increase. Other statutory payments have not increased but typically increase in April 2024, and may be announced in due course.
This is the largest ever increase to the minimum wage in cash terms. The national living wage will also now apply to all workers aged 21 and over for the first time. Before, it was only those aged 23 and over.
Jodie commented: “This is particularly important if you employ people on the national minimum wage; their payments should be increasing, effective 1 April 2024. If you have a third party doing your payroll, you will want to ensure that they action these payments correctly—delegating this task is not an excuse for a failure to pay correctly.”
“In particular, you want to consider whether any of your employees change age this year or end apprenticeships and how this change could affect their minimum wage entitlements.
Apprenticeship investment
In response to the Chancellor’s autumn budget announcement, Tom Moyes, an employment expert from Blacks Solicitors, highlighted the pivotal commitment to increase apprenticeship funding by £50 million over the next two years, specifically targeting growth sectors in the UK. Moyes underscored the necessity for effective utilisation of this investment to overcome existing barriers to training opportunities and to emphasise apprenticeships as attractive and viable options for both apprentices and businesses. He stated, “The proposed investment in the two-year pilot is welcomed, but it must be used effectively to address the existing barriers to training opportunities and showcase that apprenticeships are an attractive and viable option for both apprentices and businesses alike.”
Oliver Allanach of Gordons LLP shared a positive outlook on apprenticeships, particularly in the legal sector. Reflecting on the value legal apprenticeships bring to organisations, Allanach welcomed the additional support for apprenticeships and anticipated a net-positive impact on the broader economy. He noted, “Whilst we still await full details on the scheme, at Gordons, we were one of the first to establish a legal apprenticeship route, and we’ve seen the value that high-quality apprenticeships bring to an organisation.”
Discussing the impending increase in the national minimum wage for apprenticeships, Moyes acknowledged the potential for driving greater interest in apprenticeship schemes and diversifying routes to higher education. He added, “The government also announced a substantial increase to the national minimum wage for apprenticeships. These changes are likely to drive greater interest in apprenticeship schemes and promote alternative and more diverse routes to higher education and qualifications.”
Image: Blacks Solicitors, Thrive Law and Gordons LLP
