Make UK Labour Market & Skills Policy Committee: Key Themes and Outcomes from the Final 2025 Meeting

12th November 2025 marked the final meeting of the Make UK Labour Market and Skills Policy Committee for the year, bringing together senior HR and training leaders from across UK manufacturing to discuss major policy developments affecting the sector. The two-hour session placed particular emphasis on the Government’s Employment Rights Bill (ERB), recent labour market policy activity, and forthcoming reforms to post-16 education and skills.

Employment Rights Bill: Concerns on Union-Related Measures

Officials from the Department for Business and Trade (DBT) attended the meeting to discuss two October 2025 consultations on ERB proposals:

1. A new employer duty to inform workers annually of their right to join a union
2. A new framework for trade union access to workplaces

Employer Duty to Inform

Committee members expressed several concerns, including:

• Administrative complexity, particularly around delivering annual reminders and determining compliant communication channels
• Challenges for older or less digitally connected workers, where email or smartphone-based notifications may be inappropriate or ineffective

Workplace Access Rights

The majority of the discussion centred on the proposed union access framework, where members raised substantial operational and practical concerns.

Response periods:

• Members welcomed confirmation that sickness and absence would be recognised within the response and negotiation windows.
• However, the view was clear that five days to organise a site visit is unworkably short, especially as the requirement goes beyond simple acknowledgement.
• Similarly, 15 days for negotiation was seen as insufficient to achieve a workable agreement for both employers and unions.

Volume of requests:

Members noted the risk that employers, especially non-unionised workplaces, could become overwhelmed with requests, increasing the likelihood of accidental non-compliance.

Need for CAC resourcing:

Members urged DBT to ensure reforms do not simply shift bottlenecks into the Central Arbitration Committee, highlighting the need for enhanced capacity and resources.

Frequency of Access

DBT floated weekly site access as a potential “reasonable” frequency. This was strongly opposed:

• Weekly visits would create significant operational disruption
• Assumptions that unions would be too disorganised to request frequent visits were viewed as inappropriate
• The proposed caveat preventing “unreasonable interference” in business activities was seen as too weak

Practical and Digital Access Issues

Other issues raised included:

• Ambiguity around how access applies to contracted workers (e.g., cleaning staff working on-site)
• How to manage unreasonable behaviour by individual union representatives
• Physical constraints within workplaces that may limit on-site union activity
• Concerns about becoming a “middleman” for distributing union information through digital channels

Members asked to be involved in shaping the forthcoming Code of Practice, which DBT expects to draft in 2026.

Committee Functioning and Member Engagement

Barbara provided feedback from earlier consultations on committee operations. The majority of members felt the committee is working effectively and delivering value, though several areas for improvement were highlighted:

• Balance of content: Members appreciate updates but want continued opportunities to share best practice and shape policy positions.
• Administrative improvements: Papers should be sent in advance and minutes circulated promptly, especially where specialist internal input is needed.
• Future agendas: While much content is led by government activity, members are encouraged to propose additional topics.
• In-person meetings: There is strong appetite for periodic in-person sessions, provided agendas justify the time commitment.

Make UK Policy Update

Rose delivered an overview of key policy developments:

Employment Rights Bill

The ERB remains in parliamentary “ping-pong”, with the House of Lords pushing amendments on unfair dismissal and guaranteed hours.
Further consultations are expected once the Bill finally passes.

Autumn Budget 2025

Few major announcements are expected, but the new National Living Wage (likely rising by around 4.5%) and details of the Jobs Guarantee will be confirmed.

Temporary Shortage List (TSL)

Following previous discussions, the Migration Advisory Committee has published an initial list for consultation. Make UK is working closely with DBT on the accompanying Jobs Plan for advanced manufacturing. Members were encouraged to provide quantitative evidence to support Make UK’s submission.

Keep Britain Working Review

The Review has been published, with proposals focused on:

• New employer standards for health and wellbeing investment
• A new service to manage return-to-work support for workers with health conditions

The Government has not yet responded, leaving scope for Make UK to shape policy – particularly regarding whether employers may be expected to contribute financially to “Workplace Health Provision”.

Labour Market Data

Members discussed inconsistencies in recent ONS data – while vacancies rose overall, some manufacturing subsectors continue to see declines. Rose advised caution when interpreting recent figures.

Post-16 Education and Skills White Paper

The Committee reviewed the Government’s newly published white paper, which includes:

• Reform of Level 3 vocational options, including new V Levels
• Introduction of levy-funded “apprenticeship units” (from April 2026)
• Increased support for training providers through funding, capital investment, and teacher recruitment incentives

Members expressed concern about the limited ambition of reforms, particularly the reduced emphasis on flexible short courses. There was also discussion on the slow but steadily increasing uptake of T Levels.

About the Labour Market & Skills Policy Committee

The Committee plays a central role in shaping Make UK’s policy direction on labour market and skills issues in line with the organisation’s mission: Backing Manufacturing, Engineering the Future. Meeting four times per year, the Committee:

• Identifies emerging HR, skills, and labour market challenges
• Represents the views of UK manufacturing employers
• Helps inform Make UK’s positions and policy campaigns
• Provides a forum for engagement with government officials and external experts

A Chair and Deputy Chair, elected for three-year terms, lead the Committee, which is supported by the Make UK Policy Team and external advisers. Terms of Reference are reviewed every three years to ensure alignment with member needs and regulatory requirements.

As the sector prepares for significant legislative and policy changes in 2026 – including the Employment Rights Bill’s implementation, skills system reforms, and labour market interventions members emphasised the value of Make UK’s continued advocacy and early engagement with government.

The Committee will reconvene four times in 2026, including an anticipated in-person session to support deeper collaboration across the membership.