2021 was a significant year for the world of work. The year began with a national lockdown to stem the tide of spiralling cases of Covid-19, causing certain sectors of the economy to grind to a halt, and leaving many workers facing heightened insecurity. The rapid increase in the take-up of remote and hybrid working as a result of the pandemic was sustained, representing a large scale and likely long-lasting transformation of our working lives. A combination of the pandemic, Brexit and other factors led to some sectors facing rising worker shortages, felt most acutely in hospitality, retail and transport and logistics. By the end of the year, employment levels were increasing, unemployment was heading back down towards pre-Covid levels, and there were a record numbers of job vacancies. However, the emergence of the Omicron variant left us facing fresh uncertainty by the new year.

We asked members of the Work Foundation team to share their key policy moment of 2021 and what they think we should be looking out for in 2022.

Melanie Wilkes – Head of Research

Key moment of 2021: Universal Credit taper rate reduction

The Government made important changes to support workers on low incomes, reducing the taper rate at which Universal Credit payments are reduced as claimants move in to work, and allowing some single parents and disabled workers will to keep more of their UC as they start earning through an increase to work allowances. The potential impacts of these reforms were hampered by the decision to remove the uplift to benefits introduced through the pandemic, but they do signal recognition of the need to address fundamental flaws within our social safety net. Building on this, we’ve outlined some further simple reforms that would make our welfare benefits work better for working people.

What to look out for in 2022: Employment rights and protections

After an extended gap, we now have a Director of UK Labour Market Enforcement. Margaret Beels OBE will have a packed agenda for her first year in post, delivering on a new enforcement strategy and laying the groundwork to set up a new single enforcement body for workers’ rights in the UK. 2022 may also see the launch of the long-anticipated Employment Bill. With the UK no longer required to remain in step with EU states on new employment legislation, we’ve outlined the key policy areas that could be in scope for reform over the years ahead through our briefing Standing at a crossroad: Brexit and the future of workers' rights.

Rebecca Florisson – Policy Advisor

Key moment of 2021: Remote working here to stay

The past year has shown that the shift to remote and hybrid working is set to become a lasting feature of the post-pandemic world of work. It also became clear that positive impacts, such as better work life balance, must be balanced against the risk of challenges to diversity and inclusion. Most importantly, it is now time to consider how the wider spectrum of flexible working options, such as job share or flexitime, can be used to support workers to thrive at work.

What to look out for in 2022: Potential reform of flexible working regulations

In 2022, the Department for Business, Energy, Industry and Strategy (BEIS) will respond to the consultation on flexible working regulations. Key areas include: reducing the requirement of 26 weeks of service to a day one right to request flexible working, reducing the time frame an employer has to respond, and allowing workers to make more than one request per year.

Heather Taylor – Policy Analyst

Key moment of 2021: The Supreme Court’s ruling that Uber drivers are workers

In February last year, the Supreme Court ruled that Uber drivers must be treated as workers rather than self-employed contractors. This distinction is important given that workers have various protections that are not afforded to the genuinely self-employed, including the right to be paid the national minimum wage and the right to paid holiday.

The precedent set by this ruling could have sizeable implications for the future of the gig economy in the UK, and strengthens the case made in the Taylor Review for greater fairness for those who work through platforms. However, more now needs to be done by government to prevent exploitation and protect workers from insecurity, while preserving the flexibility and autonomy that platform work affords.

What to look out for in 2022: Algorithms and data at work

Algorithmic management and worker surveillance are defining features of platform work, although their use is extending beyond the gig economy. This trend has accelerated since the onset of the pandemic, with more than 1 in 7 (15%) employees reporting that monitoring by their employer has increased since March 2020.

it is vital that in embracing new technologies to improve productivity in the workplace, workers’ rights are not put at risk. A new Accountability for Algorithms Act would ensure that algorithms are used in a fair and transparent way, and that people are properly accountable for their decisions about their design and use. However, even in the absence of action from Government on this in 2022, expect Trade Unions to make data part of their bargaining agenda and continuing their campaigns on transparency over the collection and use of employee data.

Disclaimer

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.