Political Monitor UK | October 13th Edition

APSCo Budget Submission on Behalf of Members

• We urge HM Treasury not to increase taxation on employers and, to focus this Budget on regulatory and tax reform measures designed to support controlled labour market flexibility. 
  
  
• Digitalisation and technology are critical to productivity. Contracting and a flexible labour market offer an alternative to costly external consultancy on digitalisation, delivering internal ownership of the budget and project timelines, allowing greater access to niche highly skilled professionals. 
  
  
• We invite HM Treasury to recognise the recruitment and workforce solutions sectors as supportive partners, and UK success stories that should be encouraged, rather than excluded from supply chains. 
  
  
• To this end, we are calling on HM Treasury to fund:
  
  
  • Even tougher regulation of the umbrella market, including a licencing scheme and greater data sharing with recruiters. 
    
  • A review of employment status for tax including defining the self-employed and guidance on consultancy/contracted out services to provide confidence to UK business and the public sector to supply and use such services.
    
  • The Fair Work Agency and reform of Employment Tribunals and ACAS fully.
    
  • NHS workforce innovation including standardised cross-ecosystem compliance, re-funding a digital work passport and partnership with key stakeholders, recognising the value of temporary workers and consultants.
    
  • Steps to ensure the Growth and Skills Levy and surplus Immigration Skills Charge funds are fully allocated to domestic skills initiatives.

• APSCo are running further webinars and in-person member meetings on the Umbrella Companies forum. You can find details here, if you’d like to attend and get involved.

APSCo’s Recruitment Trends Report for September shows a positive upturn in contract recruitment, and aligns with the mood of improved optimism evidenced in the APSCo Saffrey Recruitment Index.

• All eyes are on the Middle East today as the remaining Israeli hostages are freed and a summit is to take place in Egypt.
  
  
• Parliament returns from recess, following the party conferences (13^th October).
  
  
• Conservative Party Conference concluded last week. You can find an analysis and briefing note on the conference here.
  
  
  • In her conference speech, Opposition Leader Kemi Badenoch highlighted the Conservatives’ record on job creation and welfare reform, promising to strengthen economic responsibility while restoring national prosperity, and reaffirming her party’s commitment to helping people into work as part of rebuilding Britain’s economy and social stability.
    
    
• A £167.2 million expansion of the Connect to Work programme will embed job advisers in GP surgeries and mental health services across nine new areas, helping over 40,000 sick or disabled people access tailored employment support, training, and childcare to move into work.
  
  
• The Government is offering tax-free bursaries and scholarships of up to £31,000 to attract more specialist teachers in key subjects like maths, physics, chemistry, and computing, aiming to improve recruitment, retention, and educational outcomes across England.
  
  
• In other news, Prime Minister Keir Starmer’s two-day trade mission to India secured 10,600 UK jobs through £1.3 billion of Indian investment, new film and defence projects, and expanded opportunities for British companies to grow in India under the UK-India trade deal. He also clarified that Britain will not relax visa rules for Indians.
  
  
• The Government is investing £500 million in England’s first-ever fair pay agreement for adult social care workers, establishing a negotiating body through the Employment Rights Bill with employers and unions to improve wages, conditions, recruitment, and retention, with the agreement set to take effect in 2028. Consultation details are below.
  
  
• The Scottish National Party opened their Annual Conference in Aberdeen on Saturday, with First Minister John Swinney pushing for the 2026 Scottish Parliamentary elections to be seen as a mandate for a second Independence referendum.
  
  
• The Care Minister Stephen Kinnock spoke to the Royal College of General Practitioners, pushing for greater modernisation and digitisation in the NHS, promising £1.1bn of investment in general practice, and the recruitment of 2,000 more GPs.
  
  
• DWP announced that nine further areas of England will benefit from a £167m investment in Connect to Work, which aims to put specialist employment advisers in GP surgeries and mental health services, to tackle unemployment.

Consultations

Fair pay agreement process in adult social care - consultation document - GOV.UK

The proposed Fair Pay Agreement will be negotiated through a newly established Adult Social Care Negotiating Body (ASC Negotiating Body) , which will bring together representatives of both workers and employers. Temporary workers including agency workers and bank staff are covered by the ASC Negotiating Body.  Given the sector’s reliance on temporary staff to provide flexibility the government considers it appropriate for them to be in scope.  Genuinely self employed are not affected (and are outside of scope of the ERB generally), reference is made to the upcoming consultation on employment status.  This body extends to workers spending the majority of their working time providing adult social care in England, whomever they are employed/engaged by.   

Members likely to be affected, including those in our Clinical Healthcare sector group, wishing to respond should wait for an impact assessment of the potential effects of the options which will be published alongside the consultation document in due course.

We are keen to submit your views via the CBI who have asked for input on the following: 

1. Impact on productivity and terms
   Do you believe the proposed framework is likely to deliver the increased productivity and improved pay and conditions that the government expects? If so, or if not, why? 
   
   
2. Precedent for other sectors
   From your sector’s perspective, do you have views on the precedent this sets for potential FPAs in other industries? 
   
   
3. Suggestions for improvement
   Are there specific aspects of the proposed FPA structure that you think could be improved — for example, in relation to its scope, funding, or representation structure

Please contact tania.bowers@apsco.org with feedback.  The consultation closes on 16th January 2026

Parliament & Legislation

Employment Rights Bill:

• The Lords will re-consider the Commons’ amendments to the Bills on 24^th October, delaying Royal Assent until at least November.

English Devolution Bill:

• The Committee Stage of the English Devolution Bill, which will grant new skills powers to Mayors, began on 16^th September and will continue once the Commons returns in October.