July WorkerTech Round-Up

This month not only brought a new Prime Minister to Downing Street, but also a string of announcements that are highly relevant to the world of WorkerTech.

We cover two of the biggest below: the DWP's new Pathways to Work Innovation Fund, and a shake-up of vocational education aimed at tackling youth unemployment.

We also round up the latest research from the Resolution Foundation, including a deep dive into the UK's fiscal challenges and taking stock of regional economic inequality across the country.

Until next month,
Aish

Spotlight on: Pathways to Work Innovation Fund

Applications for the DWP's new £60 million Pathways to Work Innovation Fund open in September, marking a potential next step to the Keep Britain Working Review we covered in our November round-up.

Launched on 14 July, the fund sits within the government's wider £3.5 billion Pathways to Work employment support package, and will invite public, private and voluntary sector organisations to bid for funding to test new approaches that help disabled people and those with health conditions get into and stay in work.

The Review set out the scale of the problem: over 1 in 5 working-age people are now out of work and not looking for it, and disabled people remain locked out of work at twice the rate of non-disabled people.

This fund forms part of the government's answer to this issue. The intended bidders appear to be tech companies, given the Fund was launched at a techUK innovation showcase.

Research previously published by the Foundation has discussed the barriers that people with disabilities or health conditions face in finding work. And through the companies we meet, we know that technology has the potential to remove barriers to work.

Our portfolio company Earlybird is an example of the type of tech innovation that helps people get into work. Their voice-powered platform helps frontline employability advisers cut admin time through multilingual conversation tools and automated case notes, freeing advisers to spend more time with the people in front of them rather than on paperwork. This makes a real difference to someone navigating a disability or health condition while trying to get back into work. Less time spent waiting on a system weighed down by admin means more time with an adviser who can actually help. Earlybird's deployment with Sheffield City Council's Opportunity Sheffield programme cut adviser admin time by 75%.

Full application guidance is still to come, so there's more detail to follow before bids open in September.

New announcements about vocational education 

Also among announcements, on 28th July, the new Prime Minister announced a proposed shake-up of the education system, introducing new technical education pathways from age 14. Students will combine core academic subjects with technical education, work experience and direct employer contact, tailored to local growth sectors including AI, digital and technology.

The announcement is part of a response to the NEETs crisis and the Milburn Review, which we have covered extensively in our previous round-ups. The final report from the Milburn Review is expected later this year, so there may be more to come in terms of findings, Government response and of course, analysis from the Resolution Foundation.

Other insights from the Resolution Foundation

The Great Escape
Analysis from the Resolution Foundation says that weak economic growth since 2007 has cost the UK £450bn a year in lost tax receipts, though this has been partly offset by lower public sector pay and welfare spending, which slowed in line with the wider economy. The report warns that public debt is on an unsustainable path, potentially exceeding 300% of GDP within 50 years if current policy continues. Faster growth alone won't fix this, since rising wages tend to eat up much of the extra tax revenue. Instead, the report recommends running a current budget surplus of at least 1% of GDP outside recessions, replacing the State Pension triple lock with a more sustainable alternative, and publishing a medium-term fiscal strategy with OBR-style costings attached to political manifestos.

Regional economic inequalities: challenges and opportunities
This month, we published research presented by our Chief Executive Ruth Curtice at an Atom Bank briefing event in Newcastle. The research takes stock of regional inequality in the UK, looking at the good (in terms of progress), the bad and the ugly.The good: employment gaps between local authorities narrowed by 3 percentage points over the 2010s, and pay gaps have shrunk thanks to a rising minimum wage. The bad: household income and productivity gaps between places remain large and have barely moved in 26 years. The ugly: poor-performing areas tend to stay that way, and even Manchester, the fastest-growing UK core city since 1997, still has an income per head two-fifths below London's. The publication concluded that in response, policy priorities should include expanding mental health provision and apprenticeship funding for NEETs, and targeted transport and housing investment focused on Britain's second cities.

Latest news

Nominations have opened for the Government's Pro Worker AI Adoption Prize
The Department for Science, Innovation and Technology has launched its Pro-Worker AI Adoption Prize, which recognises UK organisations that are adopting AI in ways that can provide workers with new capabilities, create new jobs and put worker voices at the centre of AI adoption. You can learn more about what organisations are eligible, and how you can nominate one here.

Watch: new videos on impact from our portfolio companies
Two new films from our portfolio illustrate the impact they are driving for their customers. Blend shares 6 months of results from Pizzarova, where TikTok-style training has replaced draining compliance training, saving time and helping them scale while maintaining standards across locations. And this film from Earlybird features voices from employment advisers in Bournemouth, who say the tool now saves them around two hours of admin a day, time they can spend instead with the people they are supporting into work.

Apply for direct investment from Resolution Ventures 
We accept applications from WorkerTech ventures on a rolling basis. You can book a slot in our office hours for an initial conversation.