Welcome to your March edition of gap insight - your favourite recruitment newsletter! As March winds down, we&rsquo;re bidding farewell to Ramadan - Eid Mubarak for the coming weekend, to all who celebrate! Easter is still a few weeks away, so if you&rsquo;re sticking to your Lent sacrifices, stay strong. We&rsquo;re here to see you through the final stretch of the month with the latest from the employment, FMCG, manufacturing, warehousing, and waste and recycling sectors. So grab a brew and whatever Lent-friendly snack is getting you through, and let us regale you with the latest tales from the industry.
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<h3>In employment...</h3>
Big changes are coming to disability and sickness benefits, with the government aiming to get more people back into work. From cuts to the health top-up on Universal Credit for new claimants to a &pound;1bn investment in work programmes, the focus is shifting towards employment. By 2028, the work capability assessment will be scrapped, and jobseekers who&rsquo;ve paid in could get higher unemployment support. There&rsquo;s also a push for more face-to-face assessments and a &ldquo;right to try&rdquo; scheme, letting disabled people test working without risking their benefits. While ministers insist this will reduce long-term unemployment, charities warn it could push more people into poverty. <a href="https://www.theguardian.com/politics/2025/mar/18/key-changes-uk-benefits-cuts-disability-pip-labour" target="_blank" rel="noopener">Read more here.</a>
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<h3>Latest employment data...</h3>
Estimates for payrolled employees increased by 9,000 ( 0.0% ) between December 2024 and January 2025 and rose by 44,000 (0.1%) between January 2024 and January 2025. The early estimate of payrolled employees for February 2025 increased by 21,000 (0.1%) on the month and increased by 66,000 (0.2% ) on the year to 30.4 million.
The UK employment rate for people aged 16 to 64 years was estimated at 75% in November 2024 to January 2025. This is above estimates of a year ago, and up in the latest quarter. The unemployment rate for those aged 16 years and over stood at 4.4% during the same period, an increase from a year earlier and the previous quarter. The UK Claimant Count for February 2025 increased on the month and is up on the year, at 1.775 million.
Economic inactivity among people aged 16 to 64 years was estimated at 21.5% in November 2024 to January 2025. Job vacancies in the UK in December 2024 to February 2025 was 816,000. Vacancies are broadly unchanged on the quarter (with early estimates suggesting a small increase of just 1,000) and are still above pre-coronavirus (COVID-19 ) pandemic levels.
Annual growth in employees' average regular earnings (excluding bonuses) was 5.9%, while total earnings (including bonuses) grew by 5.8% from November 2024 to January 2025. RTI pay data showed a similar growth rate compared to Average Weekly Earnings (AWE) including arrears. When adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), real-term growth was 2.2% for regular pay and 2.1% for total pay during the same period. In January , 50,000 working days were lost to labour disputes.&nbsp;For more details,&nbsp;<a tabindex="-1" href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/latest" target="_blank" rel="noopener">read the full ONS labour market report.</a>
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<h3><img src="https://www.canva.com/design/DAFG8LmaX2E/HRg_f4Mcks9LMffJ1K3-Kw/view?utm_content=DAFG8LmaX2E&amp;utm_campaign=designshare&amp;utm_medium=link2&amp;utm_source=uniquelinks&amp;utlId=hc662d950f5" alt="">In FMCG...</h3>
Activia is stirring things up with new flavours and formats in its Kefir and Fibre ranges, all in the name of better gut health. The latest launches include a larger Activia Kefir Natural and a new Peach Passion flavour, now available at Tesco and Ocado. The Fibre range is also getting a boost with Activia Fibre Berries and Cereals, hitting Tesco shelves on 31st March. With demand for gut-friendly foods on the rise, Activia is making it easier (and tastier) to give your digestion a little&nbsp;culture. Read more about Activia&rsquo;s latest gut-friendly innovations and where to find them <a href="https://www.thegrocer.co.uk/news/activia-expands-kefir-and-fibre-ranges-with-new-flavours-and-formats/701965.article" target="_blank" rel="noopener">here.&nbsp;</a>
Lipton Ice Tea sent fans into a frenzy this week after announcing it was axing its beloved Peach flavour - only to backtrack less than 24 hours later, calling it a premature April Fools&rsquo; joke. While it grabbed headlines, marketing experts are divided. Some say it was a savvy move that reignited interest in a classic drink, whilst others argue it risked alienating loyal customers by making them feel duped. Compared to Duolingo&rsquo;s recent viral mascot &lsquo;death,&rsquo; Lipton&rsquo;s stunt felt rushed and lacking in engagement, ultimately falling flat when it could have brewed up something bigger. Discover the full story behind Lipton&rsquo;s Peach flavour controversy and why experts are divided - read more <a href="https://www.grocerygazette.co.uk/2025/03/20/lipton-tea-refreshing-risky/" target="_blank" rel="noopener">here</a>.
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<h3>In manufacturing...</h3>
Made in Britain has launched&nbsp;UnPacked, a new video series celebrating the leaders behind UK-made products - from tennis balls to tea towels. Hosted by journalist Matthew Stadlen, the series dives into the challenges and triumphs of British manufacturers, revealing what drives their success. With new episodes dropping weekly on the Made in Britain website, it&rsquo;s a must-watch for anyone passionate about UK industry. <a href="https://uk-manufacturing-online.co.uk/made-in-britain-shines-a-light-on-british-made-goods-in-new-campaign/" target="_blank" rel="noopener">Discover the stories behind UK-made products and the innovators driving British manufacturing in the new UnPacked series.</a>
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New British electric vehicle brand Perseus is making its debut with a premium compact SUV, set to launch in Europe by late 2027. Instead of building everything from scratch, they&rsquo;re teaming up with leading automotive manufacturers, an Italian design house, and a European contract manufacturer to speed things up. The SUV will run on a cutting-edge licensed EV platform, packed with AI tech, and sold directly to consumers. With a leadership team consisting of JLR, Lotus, and Bentley alum, as well as talent from INEOS Automotive, Perseus is aiming for high-end design and performance - without the luxury price tag. <a href="https://www.themanufacturer.com/articles/all-new-premium-british-electric-vehicle-brand-perseus-launches/" target="_blank" rel="noopener">Find out more here.</a>
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<h3>In warehousing...</h3>
LogiMAT 2025, one of the biggest trade shows for intralogistics and supply chain management, has revealed its best product winners, highlighting the latest game-changers in warehouse automation. This year&rsquo;s top innovations include KNAPP&rsquo;s AeroBot, a smart storage system where self-driving robots move in all directions to store and retrieve items quickly and efficiently. Also making waves is Kathrein Solutions' RFID Reader Gen4, which tracks pallets using radio signals instead of barcodes, instantly updating stock levels without the need for manual scanning. Rounding off the winners, PSI Software&rsquo;s PSIwms AI takes warehouse management to the next level by creating a virtual version of the warehouse to test and improve processes, reducing unnecessary movement and making operations much faster. Big wins for tech that make warehouses faster, smarter,&nbsp;and easier to run.<a href="https://warehousenews.co.uk/2025/03/best-product-award-presented-at-logimat-2025" target="_blank" rel="noopener"> Find out more about LogiMAT 2025&rsquo;s top innovations here.</a>
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<h3>In waste...</h3>
A new Biffa survey reveals that while 93% of manufacturers have or plan to implement a sustainability strategy, 99% say they need more support - especially with Simpler Recycling laws coming in March 2025. The biggest barrier? Cost, with nearly half saying tight budgets are holding them back. Biffa&rsquo;s latest whitepaper,&nbsp;What iff you could unlock value from manufacturing waste?, breaks down how to make sustainability pay. From smarter material choices to turning waste into a revenue stream, it&rsquo;s all about making green work&nbsp;for your business, not against it. From smarter material choices to turning waste into a revenue stream, it&rsquo;s all about making green work for your business, not against it.<a href="https://uk-manufacturing-online.co.uk/99-of-industrial-manufacturers-say-they-need-more-support-to-be-sustainable-finds-biffa-survey/" target="_blank" rel="noopener"> Explore Biffa&rsquo;s findings and solutions here.</a>
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<h3 data-pm-slice="1 1 []">Stay ahead with the latest industry insights!</h3>
Get exclusive trends, expert analysis, and key updates delivered straight to your inbox every month. <a href="http://eepurl.com/hpfLJD">Sign up for our newsletter today!</a>
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<h3 data-pm-slice="1 1 []">We'd love to hear from you!</h3>
gap Insight is for you. We care you find it useful so if you have any suggestions around what you'd like to read, or if you have any questions for our team, <a href="mailto:hello@gap-personnel.com" target="_blank" rel="noopener">please let us know.</a>
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Work push or setback? The Government’s big benefits overhaul

If you&rsquo;re an employer, HR professional, or just someone who likes to keep ahead of the latest workplace changes, 2025 is shaping to be a big year for employment law. From new leave entitlements to rising payroll costs, there&rsquo;s a lot to take in. And with some updates hitting as early as April, now&rsquo;s the time to make sure you and your business are prepared.
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The good news? You don&rsquo;t have to navigate these changes alone. Here&rsquo;s the lowdown of what&rsquo;s coming and what it means for businesses.
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<h3 class="MsoNormal" style="margin-bottom: 0cm; text-align: left;">April 2025: higher wages and rising employer costs</h3>
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April brings the usual national living and minimum wage (NLW/NMW) and statutory pay increases, but this year&rsquo;s changes are particularly significant:
<ul style="text-align: left;">
<li style="text-align: justify; color: #242c52;">From 1st April 2025, businesses must prepare for the largest recorded increase in both the National Living Wage (NLW) and National Minimum Wage (NMW). The NLW will rise by 6.7%, increasing from &pound;11.44 to &pound;12.21 per hour. However, younger workers will see the most significant wage hikes, with 18&ndash;20 year olds receiving a 16.3% increase and under-18s seeing an almost 18% rise, as the government aims to align wage growth with the ongoing cost of living crisis.</li>
<li style="text-align: justify; color: #242c52;">Employers must also account for increases in statutory payments. Statutory Sick Pay (SSP) will rise to &pound;118.75 per week, while maternity, paternity, adoption, shared parental, and bereavement pay will all increase to &pound;187.18 per week from April 2025.</li>
</ul>
Alongside these changes, employer national insurance contributions (NICs) will increase from 6th April.
The earnings threshold at which employers start paying NICs will drop from &pound;9,100 to &pound;5,000, meaning more of an employee&rsquo;s earnings will be subject to NICs.
The employer NICs rate will increase from 13.8% to 15%, significantly raising payroll costs for businesses.
The same date also marks the introduction of the Neonatal Care (Leave and Pay) Act 2023, granting parents up to 12 weeks of paid leave if their baby requires neonatal care. This long-overdue change will provide vital support to families dealing with an unexpected hospital stay.
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<h3 class="MsoNormal" style="margin-bottom: 0cm; text-align: left;">Employment Rights Bill: more worker protections on the way</h3>
The Employment Rights Bill (ERB) sets out a range of reforms aimed at strengthening worker protections, with many expected to take effect from 2026. A key focus is expanding day-one rights, including protection from unfair dismissal as well as entitlement to paternity, parental, and bereavement leave.
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Statutory sick pay eligibility is also set to change, with plans to remove the lower earnings limit and scrap the waiting period - ensuring SSP is available from the first day of illness. Whilst these changes promise greater security and peace of mind for millions of workers who currently miss out under existing rules, it does also mean increased costs for businesses that previously relied on the exemptions. Labour also plans to do away with minimum age bands, likely affecting the 18-20 bracket, meaning all adults would be entitled to the same rate. Currently, there&rsquo;s no confirmed start date, but the changes could have a major impact on sectors like retail, leisure, and hospitality, where younger workers make up a large share of the workforce, although further clarity is needed on how they will affect agency workers &ndash; including what constitutes "day one" entitlement and how regular earnings are calculated. In the meantime, the Recruitment and Employment Confederation (REC) will continue to work with the Government to ensure that the final legislation is fair and takes into account the unique nature of agency work.
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Other proposed reforms include new restrictions on zero-hours contracts and fire-and-rehire practices, along with stronger protections for pregnant workers. The Government has already held consultations across some of these changes and plans to continue discussions throughout the year, although there&rsquo;s no confirmed timeline yet. With so much in the pipeline, the REC has emphasised the need for clear guidance and a collaborative approach between employers and trade unions to ensure the bill&rsquo;s measures are both practical and effective - so businesses should stay tuned and consider the potential cost implications as these reforms evolve.
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<h3 class="MsoNormal" style="margin-bottom: 0cm; text-align: left;">Draft Equality (Race and Disability) Bill: a step towards stronger protections</h3>
Targeted for spring 2025, this bill aims to tighten protections against race and disability discrimination. While an exact date isn&rsquo;t set, it&rsquo;s a crucial update for businesses looking to bolster their diversity and inclusion policies.
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<h3 class="MsoNormal" style="margin-bottom: 0cm; text-align: left;">Pensions Scheme Bill: more changes coming soon</h3>
The Pensions Scheme Bill is on the agenda, with some changes in the works for later this year. One idea is to let employers withdraw surplus funds from defined benefit (DB) schemes - a move that could certainly boost growth and enhance benefits, though these surpluses are mostly tied up in the largest schemes. More details are due in spring - so any day now!
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<h3 class="MsoNormal" style="margin-bottom: 0cm; text-align: left;">Right to Switch Off: is it on hold?</h3>
The &ldquo;right to switch off&rdquo; has been gaining traction across Europe, with Ireland adopting it as a code of practice and Belgium even making it a legal requirement. Originally expected by 2026, the statutory code of practice was meant to guide how businesses handle out-of-hours work and promote work-life balance. However, recent updates (or a lack thereof!) suggest that the Government is no longer prioritising the issue.
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<h3 class="MsoNormal" style="margin-bottom: 0cm; text-align: left;">What should employers do now?</h3>
Change can bring uncertainty, but it doesn&rsquo;t have to be stressful. The key is preparation - reviewing policies, adjusting payroll strategies, and keeping an eye on the evolving employment landscape will help businesses stay ahead.
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Not sure how these changes will impact your workforce? That&rsquo;s where we come in. As a recruitment partner who understands the complexities of employment legislation, we help businesses stay compliant, competitive, and fully staffed - even in times of change. If you&rsquo;re worried about workforce planning,<a style="color: #242c52;" href="https://www.gap-personnel.com/recruit-staff/"> let&rsquo;s talk. </a>Because the businesses that prepare now will be the ones that thrive in 2025 and beyond.

UK employment law updates: what’s changing in 2025 (and beyond)

In the world of industrial recruitment, few things are as frustrating as unclear pricing. If you&rsquo;ve ever looked at your rate calculations and thought, &ldquo;how does this add up?&rdquo;, you&rsquo;re not alone. We don&rsquo;t think transparent pricing should just be a box to tick &ndash; it&rsquo;s the foundation for building trust and making sure your business gets the value it deserves.
<h3>Money talks &ndash; but is yours saying what you think it is?</h3>
Let&rsquo;s face it, if your current supplier can&rsquo;t explain exactly how their rates are calculated, that&rsquo;s a red flag. Hidden costs, vague explanations, and unexpected surcharges can leave you questioning if your spend is working hard &ndash; or hardly working.
Clarity isn&rsquo;t just a nice-to-have; it&rsquo;s non-negotiable for making informed decisions and maintaining control over your spend. Without transparency, it&rsquo;s impossible to see whether the rates you&rsquo;re paying align with the value you&rsquo;re getting - or if you&rsquo;re funding inefficiencies that could have been avoided.
<h3>Margins that look too good to be true (which means they probably are)</h3>
A low margin might look good on paper, but it often hides overcharges in other areas. Are you paying more for overtime or holiday pay than you should? Is your supplier&rsquo;s markup quietly creeping into costs labelled as &lsquo;extras&rsquo;? &nbsp;Because, if it feels too good to be true, it probably is.
And here&rsquo;s the real risk: some providers offering suspiciously cheap rates are using <a style="color: #242c52;" href="https://www.gap-personnel.com/employers-news/umbrella-companies/" target="_blank" rel="noopener">umbrella schemes</a> to drive down costs. These schemes are now under increased government scrutiny, and for the first time, liability could be traced back to your business directly &ndash; just as we saw with IR35.
With upcoming regulatory changes, the days of outsourcing risk through questionable supply chains are coming to an end. If your provider&rsquo;s rates seem unusually low, it&rsquo;s worth asking why &ndash; before your business finds itself caught up in compliance risks it never signed up for.
<h3>Transparent pricing done right</h3>
Pricing shouldn&rsquo;t be a guessing game. We keep it simple, competitive, and - most importantly - clear, using the Association of Labour Provider&rsquo;s (ALP) transparent charge rate guidance as the foundation for how we structure our rates. It&rsquo;s not just industry best practice - it&rsquo;s how we make sure every client knows exactly where their money is going. And this year, another cost factor is at play: the Employer&rsquo;s National Insurance (NI) thresholds and contributions are shifting, bringing significant cost implications. If your supplier is offering reduced rates despite these increased costs, it&rsquo;s worth questioning how they&rsquo;re making up the difference. We help businesses navigate these changes with accurate, transparent rate calculations, ensuring full compliance and financial clarity.
<h4>Here&rsquo;s what that means for you:</h4>
<ul>
<li class="MsoNormal" style="text-align: justify; color: #242c52;">All our costs are broken down so nothing&rsquo;s hidden in the &lsquo;fine print&rsquo; (we&nbsp;know you&rsquo;re heard that before).</li>
<li class="MsoNormal" style="text-align: justify; color: #242c52;">&nbsp;No sneaky fees creeping in to eat away at your margins.</li>
<li class="MsoNormal" style="text-align: justify; color: #242c52;">A fair, industry-backed structure that keeps everything above board.</li>
</ul>
<h3>Let&rsquo;s get transparent together</h3>
We&rsquo;re taking our commitment to transparency a step further this March with our ALP rate reviews. Whether you&rsquo;re already working with us or considering making the switch, these reviews are designed to ensure you&rsquo;re getting maximum value from your<a style="color: #242c52;" href="https://www.gap-personnel.com/employers-news/best-price-vs-best-value-blog/" target="_blank" rel="noopener"> recruitment spend.</a>
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Ready to eliminate the guesswork? <a style="color: #3598db;" href="https://www.gap-personnel.com/employers-get-in-touch/" target="_blank" rel="noopener">Contact us today </a>to discuss how we can take the stress out of pricing with clear, honest, and tailored solutions for your business.

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Work push or setback? The Government’s big benefits overhaul

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