Employment Law News Roundup – 7.9.25

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Connect to Work Receives £338 Million Funding Boost

The Government has unveiled a significant expansion of support for individuals who are sick, disabled, or facing complex obstacles to employment through the Connect to Work programme, following the enactment of the Universal Credit Act 2025, which received Royal Assent on the 3rd September 2025. It represents a key part of the Government's "Get Britain Working" strategy,

Connect To Work

Backed by £338 million in new funding from the Department for Work and Pensions, the Connect to Work initiative aims to provide intensive, localised assistance to over 85,000 people in 15 regions across England. This targeted approach is part of a broader £3.8 billion package designed to tackle economic inactivity and to attain an 80% employment rate.

How The Programme Works

The key elements of the Connect to Work programme are:-

  • Integration with Health Services: Connect to Work is closely integrated with the healthcare system to help individuals manage their health conditions alongside their employment goals. 
  • Voluntary Participation: Individuals can self-refer to the programme or be referred through partners such as healthcare professionals, local authorities, and voluntary organisations.
  • Intensive, Personalised Support: Participants work one-on-one with employment specialists who provide individual coaching, career guidance, and assistance with applications and interviews.
  • Ongoing Help: Support continues after a participant is hired to help them successfully transition into their new role and sustain employment.
  • Employer Collaboration: The programme works with employers to find suitable job matches and help with any necessary workplace adjustments.

Aims & Objectives

Over the next five years, it is expected that approximately 300,000 individuals across England and Wales will benefit from the Connect to Work programme.

The need for such interventions, such as Connect to Work, is underscored by the fact that 2.8 million people in the UK are currently out of work due to ill health, a figure among the highest in G7 nations. Notably, more than one in four unemployed individuals now cites sickness as a barrier to employment, compared to one in ten just over a decade ago. These statistics highlight the growing urgency for tailored support that addresses specific challenges faced by disabled people and those with health conditions.

Several regions are receiving substantial funding allocations from Connect to Work: Central London will receive up to £71.9 million; South Yorkshire over £35.3 million; and Greater Essex up to £30.7 million. In South Yorkshire alone, nearly 10,000 people will be supported into work thanks to this investment.

Connect to Work is a central part of the government's broader welfare reforms, which seek to move away from a "can-versus-can't work" benefits system towards a more proactive, supportive, and inclusive approach. The Universal Credit Act 2025 aims to make welfare fairer by reducing disincentives to work and increasing the standard allowance.

Additionally, Connect to Work builds on programmes like WorkWell, which integrates health services with employment support and has already begun transforming outcomes in early delivery areas such as West London. Participants there are already securing jobs with help from coaches trained to address their unique barriers.

Accountancy Industry Faces Unprecedented Talent Shortage

The accountancy sector is confronting a severe talent crisis that is stalling growth and reshaping how firms operate globally. According to a new report from Advancetrack, 94% of accountancy leaders believe that the difficulty in recruiting skilled professionals is their biggest barrier to expansion, with nearly 40% describing the problem as “significant.” Indeed, the shortage is so acute that 74% of firms are unable to accept more clients or increase billable hours due to insufficient staff.

This challenge is compounded by demographic shifts, as 30% of surveyed firms report more employees nearing retirement than new entrants joining the profession. Nearly half of respondents say that the situation has deteriorated compared to three years ago.

In response, many firms are turning to outsourcing and offshoring, 61% and 33%, respectively, to boost their capacity. Additionally, rising salary pressures are prompting almost half of firms to invest in technology and staff development as part of future-proofing efforts.

Last Updated:  Sunday, September 7, 2025

FAQs

Who is eligible to participate in the Connect to Work programme?

Connect to Work is open to individuals who are sick, disabled, or facing complex obstacles to employment. Participation is voluntary and people can self-refer or be referred by healthcare professionals, local authorities, or voluntary organisations.

How does Connect to Work support individuals with health conditions?

The programme integrates closely with health services, ensuring participants receive personalised guidance that considers their medical needs. Employment specialists help manage both health challenges and career goals for a smoother transition into work.

What kind of assistance does the programme offer once someone finds a job?

Support doesn’t end when a participant secures employment. Ongoing help is available to aid the transition into work, provide advice on workplace adjustments, and ensure sustained employment success.

How does Connect to Work collaborate with employers?

The initiative partners with employers to find suitable job matches for participants and assists businesses in making necessary workplace adjustments, fostering inclusive recruitment and retention practices.

Why is there a talent shortage in the accountancy profession?

The accountancy sector faces a talent crisis due to difficulties recruiting skilled professionals and demographic shifts, with many employees retiring while fewer new entrants join the field, creating significant staffing gaps.

How are accountancy firms responding to the shortage?

Firms are increasingly turning to outsourcing and offshoring for capacity, while also investing in technology and staff development initiatives to address rising salary pressures and future-proofing their operations.

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