Employers / News and insights

Work push or setback? The Government’s big benefits overhaul

by Jennifer Teese

Work push or setback? The Government’s big benefits overhaul

Welcome to your March edition of gap insight - your favourite recruitment newsletter! As March winds down, we’re bidding farewell to Ramadan - Eid Mubarak for the coming weekend, to all who celebrate! Easter is still a few weeks away, so if you’re sticking to your Lent sacrifices, stay strong. We’re here to see you through the final stretch of the month with the latest from the employment, FMCG, manufacturing, warehousing, and waste and recycling sectors. So grab a brew and whatever Lent-friendly snack is getting you through, and let us regale you with the latest tales from the industry.

 

In employment...

Big changes are coming to disability and sickness benefits, with the government aiming to get more people back into work. From cuts to the health top-up on Universal Credit for new claimants to a £1bn investment in work programmes, the focus is shifting towards employment. By 2028, the work capability assessment will be scrapped, and jobseekers who’ve paid in could get higher unemployment support. There’s also a push for more face-to-face assessments and a “right to try” scheme, letting disabled people test working without risking their benefits. While ministers insist this will reduce long-term unemployment, charities warn it could push more people into poverty. Read more here.

 

Latest employment data...

Estimates for payrolled employees increased by 9,000 ( 0.0% ) between December 2024 and January 2025 and rose by 44,000 (0.1%) between January 2024 and January 2025. The early estimate of payrolled employees for February 2025 increased by 21,000 (0.1%) on the month and increased by 66,000 (0.2% ) on the year to 30.4 million.

The UK employment rate for people aged 16 to 64 years was estimated at 75% in November 2024 to January 2025. This is above estimates of a year ago, and up in the latest quarter. The unemployment rate for those aged 16 years and over stood at 4.4% during the same period, an increase from a year earlier and the previous quarter. The UK Claimant Count for February 2025 increased on the month and is up on the year, at 1.775 million.

Economic inactivity among people aged 16 to 64 years was estimated at 21.5% in November 2024 to January 2025. Job vacancies in the UK in December 2024 to February 2025 was 816,000. Vacancies are broadly unchanged on the quarter (with early estimates suggesting a small increase of just 1,000) and are still above pre-coronavirus (COVID-19 ) pandemic levels.

Annual growth in employees' average regular earnings (excluding bonuses) was 5.9%, while total earnings (including bonuses) grew by 5.8% from November 2024 to January 2025. RTI pay data showed a similar growth rate compared to Average Weekly Earnings (AWE) including arrears. When adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), real-term growth was 2.2% for regular pay and 2.1% for total pay during the same period. In January , 50,000 working days were lost to labour disputes. For more detailsread the full ONS labour market report.

 

In FMCG...

Activia is stirring things up with new flavours and formats in its Kefir and Fibre ranges, all in the name of better gut health. The latest launches include a larger Activia Kefir Natural and a new Peach Passion flavour, now available at Tesco and Ocado. The Fibre range is also getting a boost with Activia Fibre Berries and Cereals, hitting Tesco shelves on 31st March. With demand for gut-friendly foods on the rise, Activia is making it easier (and tastier) to give your digestion a little culture. Read more about Activia’s latest gut-friendly innovations and where to find them here. 

Lipton Ice Tea sent fans into a frenzy this week after announcing it was axing its beloved Peach flavour - only to backtrack less than 24 hours later, calling it a premature April Fools’ joke. While it grabbed headlines, marketing experts are divided. Some say it was a savvy move that reignited interest in a classic drink, whilst others argue it risked alienating loyal customers by making them feel duped. Compared to Duolingo’s recent viral mascot ‘death,’ Lipton’s stunt felt rushed and lacking in engagement, ultimately falling flat when it could have brewed up something bigger. Discover the full story behind Lipton’s Peach flavour controversy and why experts are divided - read more here.

 

In manufacturing...

Made in Britain has launched UnPacked, a new video series celebrating the leaders behind UK-made products - from tennis balls to tea towels. Hosted by journalist Matthew Stadlen, the series dives into the challenges and triumphs of British manufacturers, revealing what drives their success. With new episodes dropping weekly on the Made in Britain website, it’s a must-watch for anyone passionate about UK industry. Discover the stories behind UK-made products and the innovators driving British manufacturing in the new UnPacked series.

 

New British electric vehicle brand Perseus is making its debut with a premium compact SUV, set to launch in Europe by late 2027. Instead of building everything from scratch, they’re teaming up with leading automotive manufacturers, an Italian design house, and a European contract manufacturer to speed things up. The SUV will run on a cutting-edge licensed EV platform, packed with AI tech, and sold directly to consumers. With a leadership team consisting of JLR, Lotus, and Bentley alum, as well as talent from INEOS Automotive, Perseus is aiming for high-end design and performance - without the luxury price tag. Find out more here.

 

In warehousing...

LogiMAT 2025, one of the biggest trade shows for intralogistics and supply chain management, has revealed its best product winners, highlighting the latest game-changers in warehouse automation. This year’s top innovations include KNAPP’s AeroBot, a smart storage system where self-driving robots move in all directions to store and retrieve items quickly and efficiently. Also making waves is Kathrein Solutions' RFID Reader Gen4, which tracks pallets using radio signals instead of barcodes, instantly updating stock levels without the need for manual scanning. Rounding off the winners, PSI Software’s PSIwms AI takes warehouse management to the next level by creating a virtual version of the warehouse to test and improve processes, reducing unnecessary movement and making operations much faster. Big wins for tech that make warehouses faster, smarter, and easier to run. Find out more about LogiMAT 2025’s top innovations here.

 

In waste...

A new Biffa survey reveals that while 93% of manufacturers have or plan to implement a sustainability strategy, 99% say they need more support - especially with Simpler Recycling laws coming in March 2025. The biggest barrier? Cost, with nearly half saying tight budgets are holding them back. Biffa’s latest whitepaper, What iff you could unlock value from manufacturing waste?, breaks down how to make sustainability pay. From smarter material choices to turning waste into a revenue stream, it’s all about making green work for your business, not against it. From smarter material choices to turning waste into a revenue stream, it’s all about making green work for your business, not against it. Explore Biffa’s findings and solutions here.

 

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