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 The Roadmap - your favourite driving 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 and driving 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.

 

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 2025increased 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 details, read the full ONS labour market report.

 

Driving. 

Big changes are coming to driving licences this summer, with the government rolling out digital versions as part of its new GOV.UK Wallet app. Designed to make identity checks easier and cut admin costs, the move has divided opinion. Supporters highlight the security of smartphone features like facial recognition, while others worry about accessibility - especially for older drivers. The good news? It’s optional, and physical licences aren’t going anywhere, so those who prefer a traditional card can stick with what they know – at least for now! Read more here. 


More HGV drivers on the road? A win is a win, but let’s not get carried away just yet. Almost half of them are over 50, fewer people are taking tests, and vacancies are up. Logistics UK is waving the warning flag, but there’s hope: the Generation Logistics campaign has made logistics 37% more appealing (which, let’s be honest, is no small feat). The challenge now is turning that awareness into new drivers. Want to know more, read the full article here.