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Published: 16-Jun-26 | By APSCo
Public Policy
Political Monitor | June 16th Edition
Trusted Partner LinkedIn has published a sobering report with Government highlighting a year-on-year reduction in entry-level jobs. Members still have time to respond to the Low Pay Commission consultation on NMW to provide evidence of the impact of NMW and NICs increases on hiring. More positively, the Government is launching 180 “Dutch-style" youth hubs providing support on youth employment and employer experiences across the country – recruiters should look locally to see how they can deliver expertise and opportunities through these hubs.
Read more below.
News Round Up
The BBC broke the news yesterday that Russia was behind arson attacks targeting the PM and a social media group called Direct Action. The Social Market Foundation today published research highlighting a surge in online misinformation targeting Makerfield ahead of the by-election and made a series of recommendations to the government to manage the online threat. The PM yesterday announced a ban on social media for under 16s, due to come into force next year. The Consultation response can be read here.
This follows last week’s civil unrest in Southampton and Belfast following the reporting of horrific knife crimes and the police response, with illegal immigration even higher on the agenda in the Makerfield by-election.
PM Starmer remains under pressure over his delayed defence plan, with John Healey resigning as defence secretary last week, citing the spending plans “fall far short”, a view shared by military chiefs. The PM is now at the G7 in the week that a framework deal for ending the Middle East war is expected at any time.
Thames Water and the water industry continue to be on the agenda. The Government is thought to support a form of temporary nationalisation known as a special administration regime (SAR) rather than a further loan package for the distressed business. A SAR ensures vital companies, such as water, are kept running by government-appointed managers. This could signal a policy of more SARs across utilities, particularly if there is a change of leadership.
APSCo News
Consultation Meeting | London 14th July 9.30-12pm: Register for our consultation meeting on the Zero Hours ERA reforms here.
Parliament, Employment Rights Act & Sector Regulation
Employment Rights Act and Sector Regulations
In addition to the Zero Hours consultation, the Government launched Make Work Pay consultations:
DBT Launches TUPE Consultation as Part of Make Work Pay Reforms seeking views on potential reforms to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) as part of its wider Make Work Pay agenda. APSCo and OutSource members involved in outsourcing, managed services or service provision changes may wish to review the consultation and consider the potential operational impact of any future reforms. The deadline to respond is 1 July 2026, and you can access the consultation through our What’s New page.
DBT Launches a Consultation seeking views on employment rights for unpaid carers and parents of seriously ill children, asking what support would be most useful to them. Consideration is given as to whether such workers should have rights along similar lines to other family leave rights.
DBT has launched a consultation reviewing rights for time off to perform public duties, such as special constables. They will be interested to hear how it applies to temporary work. The consultation closes on 4th September.
Parliament and Consultations
The Hansard Society produce a weekly summary of what is coming up in Parliament.
Low Pay Commission 2026 Consultation seeking evidence to inform recommendations on future National Minimum Wage (NMW) and National Living Wage (NLW) rates from April 2027. The deadline to respond is 26 June 2026.
It is seeking views on the impact of recent minimum wage increases, current economic and labour market conditions, and the affordability of future rate increases for businesses. The consultation also includes questions around youth rates, apprenticeships and the Government’s longer-term aim of aligning the 18–20-year-old rate more closely with the National Living Wage. We hear that the bunching up on the NMW with mid-range roles is impacting affordability issues both at entry level and also with the expectations of staff mid-career staff. You can access the consultation through our What’s New page.
This is reported as a critical issue by members. We are told that the combination of NMW and NIC increases has seriously impacted the hiring of younger, entry-level staff – so if members have data supporting this, we urge them to make their own consultation submission by 26 June and keep us informed.
See our Trusted Partner LinkedIn’s report published with the government on the significant reductions in entry-level hiring below.
Other Announcements & Publications
Economic and Growth Policy
The research undertaken by APSCo Trusted Partner LinkedIn shows UK hiring sits at –14% year-on-year as of April 2026. Entry-level hiring is falling broadly in line with the wider market, though the overall picture masks significant variation. Of 38 tracked entry-level occupations, 30 are declining. Information-processing roles are falling fastest — Accountant (–29%), Graphic Designer (–28%), and Software Engineer (–27%) – while sales and customer-facing roles are growing. There is a skills mismatch, with employers favouring candidates with operational skills, and the decline is seen most sharply in jobs where AI is most visibly capable but more research is needed.
DWP to roll out 180 employment youth hubs over two years as the Secretary of State vows to learn from the Netherlands’ approach, where young people are given multiple chances through work-study pathways, employer partnerships and apprenticeships to build a system where “inactivity is a last resort”.
DSIT has published its annual update on the Digital and Technologies Sector Plan, connected to the overarching industrial strategy. It highlights a high rate of university R&D spend in the sector, with £4 billion committed to frontier tech until 2029. They also highlight a raft of AI-related skills training initiatives launched.
SThree has launched its 2026 STEM global index, prepared by Cebr for SThree and Grayling. It highlights the critical link between the pipeline of STEM graduates and STEM-derived GDP, highlighted in the performance of countries like Japan and South Korea. The UK is a significant player, but as is well known, its economy is heavily weighted to the services sector.
Skills: AI & Technology
Last week was London Tech Week. The Government used it as an opportunity to launch new AI-related initiatives. These included a Skills England Report on AI skills, including the launch of a new AI apprenticeship and guidance to employers on delivering AI skills training, which you can find here on the website.
The Government launched the AI Economics Institute, a joint HMT-DSIT initiative to work alongside the global leading AI Security Institute, launched by Rishi Sunak. The AI Economics Institute (AIEI) is a joint HM Treasury–DSIT unit focused on understanding the economic impacts of advanced AI. As AI develops rapidly, the AIEI will strengthen the evidence base on how AI affects productivity, labour markets, firms and the income distribution.
This is alongside the AI Economics Institute Prospectus, which sets out how the institute will deliver its research through two core functions: building and analysing the evidence base to understand AI’s economic effects, and developing models and scenarios to inform resilient, future-facing policymaking. The Institute is collaborating with Trusted Partner LinkedIn and we are keen to see if other members can contribute to the evidence base.
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