The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 7.9% in June 2023. 

High inflation affects the affordability of goods and services for households. This briefing gives an overview of rising prices, particularly food, energy, and fuel prices, including the effect of the conflict in Ukraine. It outlines Government support as well as how rising prices, interest rates and other policies are affecting household budgets.

Consumer prices, as measured by the Consumer Prices Index (CPI), were 7.9% higher in June 2023 than a year before, down from 8.7% in May. After several months of inflation being above expectations, the June figure came in below economists’ forecasts of 8.2%.

Click here to read more from the House of Commons Library

The UK faces a critical shortage of skills. Not enough people have the skills they need to succeed and prosper in our changing economy.

A significant number of adults in the UK hold no formal qualifications. Equally, an estimated 9 million working-age adults in England have low basic skills in literacy or numeracy, of which 5 million have low skills in both.

We know there are persistent inequalities in participation in learning, with those closer to the labour market, with more positive experiences of formal education, younger people, and from higher socio-economic groups more likely to take part in learning as adults.

Far too many UK businesses are struggling to get the skilled people they need. There are over 1 million job vacancies and 80% of small businesses say they have struggled to recruit skilled staff in the last 12 months.

The UK is not currently developing the skilled workforce it needs for our changing economy.

Increasing the rate of adult learning across the UK is essential if we are to develop the skills the UK needs to thrive and ensure everybody can benefit from our transitioning economy. 

Together, Ufi and L&W are committed to addressing this challenge by getting more adults learning, particularly those furthest from existing provision, so they have the skills they need for an economy in transition.

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Inflation has remained higher for longer than expected and there are concerns that, in a tight labour market, people are better able to drive up their wages to try and catch up with prices. 

In this blog, L&W chief executive Steven Evans investigates whether this is really the case and observes that higher-paid sectors have benefitted from higher pay rises over the last year compared to certain lower-paid sectors.

Are recruitment challenges driving up earnings growth?

Click here to read the blog

Social Mobility Commission event on the 28th of September 2-3pm.

This event is for policy makers, government officials, educators, business leaders and employers, charities
and individuals who, like the Social Mobility Commission, are committed to making a difference for people
across the UK – to ensure that everyone has the opportunity to thrive irrespective of their background or the
place they grew up.

Register here

International Youth Day this year is on Saturday 12th August 2023.

This year’s theme: Green Skills for Youth: Towards a Sustainable World.

International youth day, bringing youth issues to the attention of the international community and celebrating the potential of youth as partners in today’s global society.

As a part of the work to improve the skills system being conducted by the Institute for Apprenticeships and Technical Education (IfATE), this report presents findings from externally commissioned research with employers as part of IfATE’s Big Conversation. This research draws on findings from 46 interviews and two focus groups with employers who were engaged, semi-engaged and not engaged with IfATE.

The central aim of the research is to improve the skills system in England; find out what is working well and avenue for potential improvement.

Employers were recruited from a total of 12 routes, and just under half of the employers were from the engineering and manufacturing and the education and childcare routes.

Overall, employers across engagement levels viewed apprenticeships positively and were impressed with the improved promotion and quality of apprenticeships following the introduction of the new apprenticeship standards. Additionally, engaged employers noted that location often determines the availability of apprenticeships.

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The City of Bradford will benefit from a cash boost of at least £10 million to kick off the city’s tenure as UK City of Culture in 2025 meeting one of the Prime Minister’s five priorities – help grow the economy, 

The cash boost supports the Government’s ambition to grow the economy and create opportunities with almost 7,000 new jobs and growth of £389 million in the local economy.

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The Welsh Government report linked here examines the experience of professionals supporting learning in the transition from education to employment in the Wales area.

Some of the recommendations include learners should be provided with authentic and meaningful experiences of the world of work/young people should be allowed to make viable and informed choices/ensure that an offer of a meaningful work experience placement is available to all learners aged 14-18 in Wales. 

Here is an example of a school working together with an offshore wind development company.

Report by IES published in June on the Mental Health of young people in work.

The report forms part of a three-year project on improving good quality work for young people. It highlights experiences of young people and their mental health at work. What challenges they face, what action is needed by policymakers, employers, and wider support networks.

Key Findings

• Nearly half (46%) of young people surveyed who have a mental health condition do not disclose this to their employer due to feeling uncomfortable doing so. Female respondents are much less likely to disclose compared to male peers.
• Three in ten young people in the survey had either left a previous job or are planning on leaving their current job because of its impact on their mental health (19% and 11% respectively).
• Over two-fifths of young people in the survey either had a pre-existing mental health condition or challenge when recruited to their job (37%) or started experiencing one after joining (7%).
• Satisfaction with individual aspects of job quality does not translate into an overall positive impact on health and wellbeing. Just over half of young people feel satisfied at work (51%), and over one-third feel supported (35%) or enthusiastic (35%). Nonetheless, over one-quarter report feeling exhausted (27%).
• Young people are generally satisfied with the quality of their work (70% average across all factors). However, over three in ten respondents in our survey reported being dissatisfied with opportunities for career progression (37%), voice and representation (36%), pay (34%), feeling valued for their work (31%), and receiving support to manage their health (30%).
• Three in ten young people in the survey had either left a previous job or are planning on leaving their current job because of its impact on their mental health (19% and 11% respectively). Rates are higher among those who have an impairment, disability, or health condition and among those who specifically have a mental health condition.

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Employers up and down the country have been recognised by the government for their outstanding
commitment to apprenticeships.

The Top 10 Apprenticeship Employers for 2023 are:
The British Army
BT
Royal Navy
PwC
The Go-Ahead Group
Deloitte
Royal Air Force
EY
Department for Work and Pensions
Nissan

The Top 5 SME Apprenticeship Employers for 2023 are:
Lee Marley Brickwork
PM+M Solutions for Business
FD Works
Bodystreet
Less Than Zero Barbers

 

Click here to read more.