John Philpott's blog

It might be pure coincidence, but in the three weeks since I became Director of our new Public Policy Department the CIPD has had more high level contact with Government ministers and officials than anyone can remember. We are once again genuine players in the corridors of power. It is therefore time for a festive celebration and what better than a cheery rendition of a seasonal sounding song. So, with apologies to Irving Berlin and Bing Crosby, feel free to join me as I sing:

I’m dreaming of a Whitehall Christmas
Just like the ones we used to know
When HR opinions stiffen
We make sure politicians listen
And get action on the go

I’m dreaming of a Whitehall Christmas
We’re having meetings all the time
Every day providing briefings
Addressing Parliamentary hearings
And showing HR is in the know

I’m dreaming of a Whitehall Christmas
With every ideas note I write
Now that CIPD is fully in sight
And we know workplace policy will be right

Thanks for reading my blog this year – if you have been. May I wish you all a very Merry Christmas and a most Happy and Prosperous New Year!
   

There are so many talent shows on television at the moment that I often get them mixed up. Tuning in last Saturday I briefly thought I was watching another blatant BBC funded commercial for one of Lord Andrew Lloyd Webber’s musical productions. On closer examination, the seriously ugly mug in view turned out not to be that of the Earl of auditions but instead belonged to X Factor judge Louis Walsh, whose often pained expression made me think that he might have had too many dodgy Irish pork sausages for breakfast.

Louis was at least pleased that his boy band mentees reached next week’s final (which I’ll have to make sure I miss). The loser was an attractive young blonde girl with a singing voice reminiscent of one time British acting legend, the late Jack Hawkins (after his major throat op that is). Her departure, like that of all those kicked off the stage, escorted from the dance-floor or ejected from the jungle in such shows, was accompanied by floods of tears, over enthusiastic hugging, hypocritical expressions of regret by the judges, and proclamations of great times had and friendships forged. I personally wish more of the failed contestants would berate their rivals or plant a Liverpool Kiss on the forehead of the likes of Arlene Phillips. But perhaps it’s not a bad thing that most high profile losers are dignified when being given the elbow especially if, at a time of mounting redundancies, it teaches the rest of us that it’s best to stay calm and remain positive when handed our P45.

This is certainly the message from government ministers now that unemployment is set to rise well above 2.5 million again. Although the government doesn’t forecast what will happen to the jobs market, its expecting the worst and is in the process of recruiting 6,000 extra jobcentre staff, reversing the trend of recent years which have seen jobcentres being shut. The Work and Pensions Secretary, James Purnell, has been given £1.3 billion of extra funding for measures designed to keep the lengthening dole queues in check, including an extension of rapid response training and job search assistance to help people as soon as they hear they are to be made redundant. But Mr Purnell expects that in return for this help both the newly jobless and those long-term out of work and living on state provided benefits should demonstrate that they are doing as much as they can to get back into work.

The government’s renewed commitment to the rights and responsibilities ethos is evident in the Welfare Reform Bill, which featured in last week’s Queen’s Speech to Parliament, and in the recommendations of a government sponsored review conducted by leading economist and labour market and welfare expert Professor Paul Gregg.

Having examined both UK and international evidence on this subject Professor Gregg reckons almost all those on benefit should be expected to be actively doing something to prepare for a return to work and should receive benefit only on condition that they do so. Lone parents with babies younger than a year old, the very severely disabled and full-time carers would be alone in not having to meet this condition. Mr Purnell will this week publish a White Paper outlining how the government proposes to take forward the findings of Professor Gregg's review.

Professor Gregg’s ideas, and Mr Purnell’s legislative proposals, have received a hostile response from the welfare lobby. The government is accused of punishing the jobless at a time when there are fewer jobs available. Some critics even go so far as to argue that existing conditions on receipt of benefit should be relaxed at this time. Such opposition is well intentioned but completely misguided.

The experience of previous recessions, both in the UK and abroad, is that the best way to prevent a substantial and prolonged rise in unemployment is to ensure that people on welfare remain attached to the labour market, search actively for openings amongst the thousands of vacancies that come onto the market even when times are tough, and prepare themselves to take early advantage of the opportunities that will arise when things improve.

Too often in past recessions governments have gone soft on benefit conditions only to find that this results in a build-up of long-term unemployment and chronic welfare dependency. As a result, unemployment has tended to peak at a higher level than necessary and, in particular, taken longer to fall back during economic recovery. Indeed, high profile news stories in recent days have highlighted to extent to which a failure to incentivise jobless people to find work has resulted in some reaching their thirties and forties without ever having held down a job, rendering them prone to all manner of errant anti-social behaviour. This is as bad for the individuals concerned as it is for the rest of us – which is precisely why some welfare reform protagonists refer to the rights and responsibilities ethos as ‘tough love’. In hard times such as today, Britain’s jobless people need to stay in condition. Society should do all it can to help them but we also have a right to expect something in return.        

Older readers will remember a time when ventriloquist acts were all the rage. When I was a kid they were always on the telly. Yet I can’t recall the last time I saw one. It was with a sense of nostalgia therefore that I watched The Queen deliver her annual speech to Parliament earlier today. Her Majesty frequently looks bored when spouting the words put into her mouth by the Government. Little wonder. Reading out a list of Bills to be considered in the course of the new Parliamentary session is enough to make anyone yawn. But at least on this occasion the Monarch’s constitutional duty was fulfilled in a relatively short space of time. The Queen spoke for just 7 minutes, ministers having decided on the lightest programme of proposed legislation in a decade.

I must confess I rarely take much notice of this event. But this year is different. The more observant among you will know that I am the CIPD’s Chief Economist. At the start of this week, however, I also began work as Director of the Institute’s newly established Public Policy Department. My team will beef up the CIPD’s thinking on legislation affecting the workplace and enhance our influence with Government and opposition parties. I’ll begin meeting Cabinet ministers and shadow spokespeople before Christmas to start putting across our view. I’ll be placing our existing policy positions under the forensic microscope too, so I was particularly interested in The Queen’s references to Bills relating to skills training and the promotion of gender equality at work.

My economist’s eye will also focus on a significant policy decision not directly referred to by Her Majesty but made to coincide with her Speech i.e. confirmation that the statutory right of employees to request flexible working will from April 2009 be extended to parents of children aged up to 16. 

The right to request was originally introduced five years ago for employees with children aged under-six or disabled and subsequently extended last year for those with an adult to care for. Ministers reckon the right has greatly benefited working parents, carers and employers alike. Evidence suggests the law has pushed on an open door, with hardly any requests from amongst the 6 million eligible employees being turned down. A review completed earlier this year by J Sainsbury’s HR director Imelda Walsh recommended the right be extended to all parents of children of compulsory school age. Until today, however, there was a suggestion that the Government might reverse its initial decision to implement Ms Walsh’s recommendation in April next year and postpone implementation because of the recession.

Business groups had lobbied the business secretary, Lord Mandelson, for a delay and will be disappointed by today’s announcement. The CIPD by contrast is joyous. The Government has given the benefit of the doubt to our view that a delay would have conveyed the impression that flexible working was a burden on business and thus have damaged efforts to promote the wider business case for moving in this direction. Our evidence based contention is that flexible working is good for employers and employees alike, staff working in this way being happier, more engaged and more productive.

Yet while the business case is indeed strong one can see why some business people question the merit of extending the statutory right at this particular time. Employers who recognize the benefits of flexible working in an economic downturn will doubtless already offer it to their staff. But those that aren’t doing so might not be well placed to immediately respond to requests when times are tough. This increases the likelihood that more requests will be turned down – which could actually reduce employee engagement and, at worst, trigger a rise in employment tribunal cases, probably the last thing hard pressed employers need in a recession.

Policy makers should always strive to strike a sensible balance between improving working conditions and not putting an undue burden on business. The Government, with the CIPD’s support, reckons early extension of the right to request flexible working to parents of older children does so, regardless of the timing. We’ll soon find out.