The recent budget highlights pivotal shifts in skills training, employment support, and social welfare policy.
The first Labour budget in 14 years is on the agenda for discussion at the Q4 Summit on 27th November. We've been digesting the announcements made to better understand the challenges, and in this case the opportunities, they present.
The focus here is on announcements addressing skills training investment and its role in social inclusion and mobility, value for public money, empowering local authorities and improving the lives of people with caring responsibilities.
Transforming Skills Training: The Role of Skills England
A significant aspect of the budget is the transformation of skills training, led by the new Skills England - here is a panel discussion captured at the September SRAG Q3 Summit that addressed the potential for Skills England, among other themes.
Featuring (left to right) SRAG Chair, the Rt. Hon. Anne Milton, ex-Skills and Apprenticeships Minister, Kevern Kerswell, Chief Executive Officer for AIM Group, Principal and CEO of BMet College, Pat Carvalho, and Laura Savage, Partner and Social Value Services Director at PeoplePlus.
Supported by a £300 million boost to further education and £40 million for shorter, foundation apprenticeships, this initiative underscores a commitment to aligning workforce skills with employer needs. The Apprenticeship Levy will evolve into a Growth and Skills Levy, driven by employer, training provider, and learner feedback to maximise its impact.
This evolution promises greater access to tailored training resources, enabling businesses to equip employees with essential skills while supporting inclusive recruitment, retention and community legacy goals. This will be a focus for the SRAG, its members and the growing network we are nurturing.
Value for Money and Social Impact
Amid economic challenges, the budget stresses value for money, directing funds toward initiatives that address societal needs and support reductions in economic inactivity.
- Public sector has a productivity target set at 2% for departments to improve efficiency
- Government will launch Office for Value for Money to ensure effective public spending
A prominent example is the 'trailblazer' funding allocated to eight regions in England and Wales. These areas will explore new methods to assist individuals facing economic inactivity due to health issues or lack of opportunities, especially among young people. By engaging in these initiatives, SRAG members will be supported to deepen community partnerships and actively contribute to reducing economic inactivity.
Connect to Work: Expanded Employment Support
The newly branded Connect to Work, formerly known as Universal Support, is set to receive £115 million in funding to help around 100,000 individuals find meaningful work by 2026. In line with goals on devolution of powers and funding, Local authorities will tailor this programme to meet local needs, with Greater Manchester and the West Midlands granted additional flexibility through Integrated Settlements. This initiative empowers practitioners of best practice Social Recruitment to collaborate more closely with local governments to address specific community needs and increase access to employment.
Lifelong Learning Entitlement: Building Future Skills
Scheduled for launch in January 2027, the Lifelong Learning Entitlement (LLE) aims to expand flexible, high-quality education and training access for adults throughout their careers. For SRAG members, this initiative is an opportunity to champion social value building continuous learning within their workforce, ensuring that employees are equipped with the skills to meet evolving market demands. Supporting employees in lifelong learning aligns with SRAG’s commitment to creating an adaptable, resilient, and inclusive workforce.
Get Britain Working Whitepaper: Focusing on Youth and Local Empowerment
The upcoming Get Britain Working Whitepaper, expected later this autumn, will outline strategies to increase workforce participation. Highlights include new Youth Guarantee Trailblazer Areas focused on youth employment and integrated health, employment, and skills services. SRAG members in these areas will be well-positioned to participate in these pilot programmes, discovering innovative ways to recruit and retain young talent and support those who face barriers to employment.
Empowering Local Authorities for Community-Focused Recruitment
The budget’s support for Greater Manchester and the West Midlands includes the first Integrated Settlements, which allow mayors to manage funding more flexibly. These changes aim to simplify local government funding and streamline grant processes, creating an environment where SRAG members can work more efficiently with local authorities to integrate social recruitment into broader community strategies.
Carer’s Allowance: Unlocking Inclusive Employment Opportunities
An update to the Carer’s Allowance income threshold will make employment more attractive for carers, a group whose skills and life experiences add unique value to the workforce.
The earnings threshold for Carer's Allowance is linked to the National Living Wage. This budget aims to allow carers to work up to 16 hours per week while retaining their benefits. Currently, the earnings cap is £151 per week, but the 2024 budget proposes raising it to approximately £181 per week, which is the equivalent of 16 hours at the newly increased National Living Wage. This measure addresses the issue that previously, as the wage level rose, the permitted hours a carer could work reduced to about 13 hours. By increasing this threshold, the government hopes to allow more flexibility and ease for carers who want to continue working without losing their benefits, a change expected to impact about 60,000 carers positively when it takes effect in April 2025.
SRAG members understand the importance of including carers in their workforce, and appreciate how creating an adaptable and welcoming environment for carers can enable them to stay in work, and their diverse skills retained. A Lunch and Learn session on supporting carers is available in the SRAG Portal to maximise this opportunity.
Aligning with SRAG’s Social Value Principles
This budget reflects the SRAG’s guiding principles: empowering inclusive recruitment, building stronger communities, and getting closer to potential staff members through localised, targeted interventions. By integrating social value into core business strategies, employers can address economic challenges and create their own sustainable foundation for growth. This approach resonates with the long-term goals set forth in Rachel Reeves’ budget, prioritising sustainable growth and economic resilience.
Next Steps
As SRAG continues to assess the full impact of the budget, Anne Milton will lead a discussion on these changes and their implications for social recruitment at our next event on 27th November.
Working together, we are better placed to build resilient, inclusive businesses that serve as models of social value and sustainable growth. You are already directly contributing to the reduction of economic inactivity and supporting communities through responsible recruitment practices - and doing so as part of the SRAG amplifies the impact.
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