The monthly ONS Labour market statistics are out today, showing job vacancies declined by 3.9% over January-March 2026. Read more below.
The Prime Minister has been under pressure the past few months on multiple fronts – from all sides for the Mandelson vetting failure; from his MPs with renewed talk of revolt after the May local elections; and, of course, from the continuing Middle East conflict and the domestic economic pressures that caused and the failure to publish an updated defence plan. Today the Government announces action to reduce energy prices by separating electricity prices from gas price turmoil. This will be one of many announcements at today’s growth event hosted by the thinktank The Good Growth Foundation.
This week the Careers and Enterprise Company are highlighting Modern Work Experience, encouraging employers to sign up during their Pledge Week.
Parliament, Employment Rights Act & Sector Regulation
Fair Work Agency (FWA) and Make Work Pay
The FWA’s initial responsibilities relate to Employee Agency regulations, Gangmasters licensing, tackling serious labour abuse and modern slavery, and National Minimum Wage enforcement (which will be delivered under contract to the FWA by HMRC during 2026/27).
Over the next year, they will set out how they will address new areas of responsibility (including Holiday Pay) and new powers as they come into scope. Find out more in theirStrategic Steerfrom Peter Kyle, DBT Minister.
The time-periods allowed for responding to access requests and negotiating agreements have been extended. However,the government intends to proceed with many of the most concerning aspects of the proposals, including weekly access as a model term, and will not provide additional upfront safeguards against disproportionate resource burdens or access rights being misused. The CBI is continuing to push for a balanced approach, so get in touch directly or via APSCo if you want to have your say in their submissions.
The Low Pay Commission (LPC) recently launched itsconsultationon the minimum wage rates for 2027.This follows the government issuinga new remitfor the LPC thatdoes not apply a 2/3rds of median income floorto the National Living Wage (as had been the case in recent years) and emphasises that the LPC hasfull flexibilityto determine the pace and ultimate timing of the removal of age bands.
Other Announcements & Publications
Economic and Growth Policy
The monthly ONS Labour market statistics are out today. Generally, employment rates and weekly earnings are stable both month on month and year on year. However, vacancies are at their lowest point since April 2021 decreasing by 3.9% to 711,000, the biggest decrease in the smallest companies (1-9 employees). The decrease is seen across 14 of the 18 industry sectors measured. The reliability of the reporting is improving in the ONS report as they build a bigger sample, and is starting to align with HMRC RTI data, although they recommend relying on HMRC RTI data for payroll numbers.
The Industrial Strategy quarterly update has also been published for January – March 2026, a useful summary highlighting delivery updates and major investment commitments across regions and specific companies.
EU Reset and Kings Speech
The government’s proposed “EU reset” is positioned as a pragmatic, incremental improvement to post‑Brexit arrangements rather than a fundamental reopening, with relevance for service businesses trading across borders. The upcoming King’s Speech is expected to signal modest legislative steps later in this Parliament to reduce friction in areas such as professional mobility, regulatory cooperation and data, without returning to the single market.
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