As we start the new year, we asked our team to choose key policy areas to look out for in the world of work and the labour market in 2023.

2023 can be the year to see more companies trying four day working week

Asli Atay, Policy Adviser

One of the most exciting news of 2022 was a hundred UK companies signing up for a permanent four day working week for their employees with no loss of pay (so 100% pay for 80% of the time while aiming to protect 100% of productivity).

The UK trial of the campaign ran from June to December 2022. Results are due in February! Survey results from September already show a success story. 2023 will be the year several other pilot schemes will become available in other countries. While many see four day working week as the future, it will be really exciting to hear more about what worked well and what challenges were faced by companies taking part in the campaign.

Can Sunak deliver his five pledges?

Ben Harrison, Director

Prime Minister Sunak has spent the beginning of 2023 outlining the five areas his performance should be judged on – from health service waiting times to halving inflation. His ability to deliver on these pledges will depend on the wider state of the public finances, the economy and a halting of Russian aggression in Ukraine.

We must hope that energy prices begin to return pre-2022 levels, and that forecasts of a deep and lasting recession together with rising unemployment are not realised. And Government must stand ready to extend support and take wider action to drive economic growth.

When will inflation drop?

Jon Fitzmaurice, Head of Engagement

In October 2022, inflation hit 11.1%. The ONS estimated that this was a 40 year high as the impact of the Russian invasion, the Covid-19 pandemic and global supply chain issues hit consumers in the UK.

Inflation has hit workers as wages have struggled to keep up with inflation, and regular pay was down a record 3% on the year in April to June 2022. The Bank of England is forecasting inflation will fall quickly from the middle of the year but, with businesses and households facing rising energy prices as Government scales back its support, 2023 is going to very tough for living standards.

We’re likely to see unemployment rise and if inflation does not fall as predicted, there could be further impacts in the labour market.

Enhanced focus on in-work progression for benefits recipients

Olivia Gable, Policy Analyst

The Department for Work and Pensions (DWP) set up an In-Work Progression Commission back in 2020, and the Commission published its recommendations in 2021. After an extended wait, the Government responded to the Commission’s report at the very end of last year. Therefore, 2023 is likely to be the year the conversation about in-work progression moves to the foreground when talking about benefits. We’ll likely see more attention on this and further debate about how DWP can and should support workers receiving benefits to progress into better paid roles, and whether their response goes far enough.

EU Retained Law Bill and workers’ rights

Rebecca Florisson, Principal Analyst

Key this year will be the EU Retained Law Bill, introduced by previous Business Secretary Jacob Rees-Mogg in 2022. The Bill seeks to review all laws stemming from the European Union, in order to amend or reject them, by the end of 2023. This timeframe is much too narrow to properly review thousands of pieces of legislation, never mind that some pieces of legislation may not even be identified yet. Furthermore, the Government’s advisory body called the bill “not fit for purpose”.

A Work Foundation report outlined how this bill may introduce more uncertainty and upheaval into an already challenging economic landscape, and particularly threatens the rights and protections of workers in insecure forms of work.

Industrial action to continue as wages lag inflation

Trinley Walker, Policy Adviser

The news agenda this winter has been dominated by a swathe of industrial action being taken across the public sector. Railway workers, Royal Mail staff and also nurses are among the public sector workers going on strike. The backdrop to this course of action is an economy under severe strain and a resulting cost of living crisis. With inflation rising to 11%, real terms pay has declined by 3% on the year. A growing number of workers are struggling to make ends meet. Recent reports have indicated that the Government may elect to appease public sector workers through one-off payments.

Whether this comes to pass remains to be seen but it seems inevitable that as unions continue to apply pressure, this issue will not disappear.

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The opinions expressed by our bloggers and those providing comments are personal, and may not necessarily reflect the opinions of Lancaster University. Responsibility for the accuracy of any of the information contained within blog posts belongs to the blogger.