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National Minimum Wage and National Living Wage increases for April 2024

National Minimum Wage and National Living Wage increases for April 2024

by | 28 Mar, 2024 | Employment

The government has announced an increase to the National Minimum Wage and the National Living Wage, which will take effect from 1 April 2024.

These wage increases are significant because:

  • the Low Pay Commission has highlighted it as the largest-ever increase to the minimum wage in cash terms
  • the age that workers must receive the highest rate of the National Living Wage is being lowered, so it now applies to employees or workers aged 21 or over – it used to only apply to those aged 23 or over.

This effectively gets rid of the old ‘adult’ rate, which used to apply to those aged 21 or 22. The National Minimum Wage is the rate that applies to employees or workers aged under 21 or apprentices.

Those who are entitled to receive the apprentice rate must be aged under 19, or 19 and over and in the first year of their apprenticeship agreement. If an apprentice is 19 or over and has completed the first year of their current apprenticeship, they’re entitled to be paid at least the minimum wage for their age.

What are the new rates?

  • Age 21 or over (National Living Wage) – £11.44 an hour (increased from £10.42 an hour or from £10.18 an hour for those aged 21 or 22).
  • Age 18 to 20 – £8.60 an hour (increased from £7.49 an hour).
  • Age 16 and 17 – £6.40 an hour (increased from £5.28 an hour).
  • Apprentices – £6.40 an hour (increased from £5.28 an hour).

It’s important to make sure that pay is increased in line with any birthdays, or work anniversaries for apprentices moving into their second year.

CLC Latest: Material Supply Chain Group

CLC Latest: Material Supply Chain Group

by | 28 Mar, 2024 | Material Shortages

Statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Material Supply Chain Group.

As the first quarter of 2024 draws to a close the latest report from Construction Leadership Council’s Material Supply Chain Group (formerly Product Availability Group) continues to show good levels of product availability across the board.

The beginning of 2024 has also brought early signs of improvement in construction activity, although housebuilding is expected to be flat for most of the year.

Overall construction activity trended upward in January and February reaching its highest level since August 2023, despite poor weather. The weather is likely to have affected sales volumes through builders’ merchants, which remained static during the first two months of the year. Most regions, however, saw an increase in volumes in March and there are hints of pent-up demand as a handful of regions are showing high levels of sales compared to 2023.

Prices generally have increased by 3 to 4%, which mirrors the wider economy where CPI inflation in January was 4.0%.

Previous concerns about the impact on products normally transported via the Red Sea seem to have dissipated or are manageable. Although some are experiencing increased shipping costs and slight delays in delivery of ironmongery and sanitaryware this is now described as an ‘inconvenience’, and not a major issue.

Separately, the electro-technical sector has flagged concerns about the ongoing geopolitical risks in East Asia and the potential impact on any construction products, plant and tools with chips sourced from that region. The Group is considering adding this issue to its ‘horizon scanning’ and some members are independently analysing the situation.

However, the availability of skilled labour (outlined in the Group’s report of 20 February 2024) remains the most immediate and pressing concern for most in the Group, with several expressing the view that current market conditions have been masking the true scale of this issue, which will be exposed when the market picks up. The Group has shared these concerns with the CLC’s People & Skills Group where they will be taken up in further detail.

FIS attends SME Connect with Prime Minister

FIS attends SME Connect with Prime Minister

by | 22 Mar, 2024 | Employment, Skills

FIS CEO, Iain McIlwee was a guest at the Government’s Business Connect Conference this week where The Prime Minister announced a reform package to support small businesses.

Key announcements include: 

  • From 1 April, the Government will fully fund apprenticeships in small businesses by paying the full cost of training for anyone up to the age of 21.
  • The amount of Apprenticeship Levy funds that employers can transfer to other businesses will be increased from 25% to 50%.
  • The Government will increase the thresholds which determine whether a company qualifies as a small or medium‐sized company by 50% and remove a number of reporting requirements.
  • New taskforce to be established to boost private investment in women-led businesses and make the UK the best place in the world to be a female founder.

Prime Minister Rishi Sunak said:

“Whether it’s breaking down barriers and red tape for small businesses, helping businesses hire more young people into apprenticeships and skilled jobs or empowering women to start up their own businesses – this government is sticking to the plan and leaving no stone unturned to make the UK the best place to do business. Taken together, these measures will unlock a tidal wave of opportunity and make a real difference to businesses and entrepreneurs across the country.”

Education Secretary, Gillian Keegan said:

“This Government has built a world-leading apprenticeship system from the ground-up – with apprenticeships now available in around 70 per cent of all occupations. Apprenticeships are a fantastic way for businesses to develop the skills they need, and these new measures will help more businesses and young people benefit from them.  Our plan to deliver a high-growth, high-skilled economy is working, with more opportunities available to young people than ever before.”

Secretary of State for Business and Trade Kemi Badenoch said:

“Almost every job in the UK is owed to what is, or what previously was, an SME. They are the engines of economic growth for this country..   Whether it’s through cutting red tape, unlocking investment or lowering business costs, today’s announcements show that this government is committed to doing all it can to turbo-charge SMEs so that they can go further and faster than ever before.”

FIS CEO, Iain McIlwee responded:

“There were some positives to take away from Monday, but I am not convinced that the new apprenticeship fund is a game changer. It does, however, simplify the funding mechanism for apprenticeships – that is a good thing. The focus on women in business is important, but the discussion on finance was sadly quite remote for construction and I am not convinced will bring us anything tangible.

My underlying concern is that we are in election season now, we are getting sweeties and headline grabbing policies when we need vision and a clear plan. We have a failing housing strategy, we have dwindling numbers of trade apprenticeships and finance for construction is in short supply.

Construction is a key enabler and fundamental driver for economic growth. This was a good opportunity to raise questions and encouraging attempt by Government to engage with business discuss SME support, but came up a bit short for me. We need a clear long-term economic strategy that we can buy into and plan around. We also desperately need procurement reform to support SMEs in construction and free up investment”.

FIS CEO Iain McIlwee’s comments at the conference were covered in this Financial Times Article

See the FIS Manifesto for Construction Here

FIS launch updated Best Practice Drylining Guide

FIS launch updated Best Practice Drylining Guide

by | 22 Mar, 2024 | Drylining

FIS has launched a revised and updated Best Practice Guide – Installation of Drylining to help promote best practice in the installation of drylining, and to take account of new working practices, the Building Safety Act and sustainability.

First published in 2015 and updated in 2018, this revised guide is an invaluable aid to specifiers, contractors, clients and installers. This publication will guide them through the design and installation of internal, non-loadbearing drylining constructions using gypsum plasterboard on rigid metal framework. It also includes descriptions of other non-plasterboard, such as calcium silicate board, which are also used in drylined systems. This guide includes drylined partitions, linings and passive fire protection.

Split into sections, the revised guide covers everything from the initial tendering and planning stages through to the eventual installation. It offers a series of points to consider when carrying out the installation of all types of drywall and provides updated and revised information including:

The guide sits alongside other FIS Best Practice Guides that relate to drylining:

Commenting on the drylining guides, Iain McIlwee, FIS Chief Executive said:

“Drylining systems form firewalls, fire escape routes and provide passive internal fire protection so it is incredibly important to get it right at all stages of installation and this has to start far earlier and long before boots hit the ground. Our new and updated guides allow professionals to reduce risks, support compliance and most importantly of all encourage responsible planning.”

A valuable resource for improving works package delivery, these guides work well when they are included in proposals and project plans to demonstrate how to best approach a project.

You can download the Best Practice Guide – Installation of Drylining here.

For further information or for any questions and comments please contact the FIS at info@thefis.org or call 0121-707-0077

 

 

 

Diabetes: the invisible epidemic creating major health and safety risks

Diabetes: the invisible epidemic creating major health and safety risks

by | 21 Mar, 2024 | Health and Safety

FIS is working with The Diabetes Safety Organisation (DSO) to draw attention to the vital issue and risks that can be posed by diabetes in the workplace. Diabetes is often misunderstood and underestimated as a condition, and its impact on individuals and the workplace is not always visible. Around 8% of your employees have diabetes and around 33% have pre-diabetes. Many employees with diabetes ‘hide’ their condition at work and/or feel unsupported by their employer, leading to poor diabetes management for individuals and greater diabetes risks for them and the business.

In a previous issue of SpecFinish, we heard from Kate Walker, Director at Diabetes Safety Organisation, who explained that the rapid increase in the number of people with diabetes means that it is very likely that some employees on site will have the condition. Employers, therefore, must understand the risks and know how to support affected employees and their colleagues. You can read he full article here https://www.specfinish.co.uk/diabetes-the-invisible-epidemic-creating-major-health-and-safety-risks/

There are 1 million people living with undiagnosed diabetes. Undiagnosed and poorly managed diabetes can lead to significant changes in eye sight, lack of sensation in feet and lower concentration levels. Additionally it causes long term damage to key organs like the heart and kidneys, increasing the number of people who exit the workplace early. With the correct support at work, people can better manage their condition, improving their productivity, concentration and over all safety.

There is limited real world data on diabetes in the workplace and we are looking for organisations to help us and themselves understand key organisational risks such as:

  • Whether work practices are compromising the ability of employees with diabetes to manage their condition according to their health providers’ recommendations
  • Whether severe hypos are being hidden/not recorded in health and safety data
  • Whether employees know how to recognise and assist a colleague experiencing a hypo
  • Whether employees with diabetes are choosing to not disclose their condition to their line manager/HR
  • Whether employees with diabetes are compliant with DVLA driving regulations
  • Whether employees understand the risks from undiagnosed diabetes
  • Whether line managers are confident in their knowledge of diabetes risks at work and ability to support employees with diabetes

The survey is confidential and can be completed here – https://forms.office.com/r/iZ1aX051Va

 

Construction output rose by 1.1% in volume in January 2024

Construction output rose by 1.1% in volume in January 2024

by | 21 Mar, 2024 | Market data

Monthly Construction Update for January

  • Construction output is projected to have declined by 0.9% in the three months leading up to January 2024, primarily due to a drop in new work by 4.5%, while repair and maintenance saw an increase of 4.0%.
  • The decline in the three-month period was driven by reductions in infrastructure new work and private housing new work, which decreased by 9.3% and 5.2% respectively. Conversely, non-housing repair and maintenance, and private housing repair and maintenance saw positive growth of 3.2% and 3.3%.
  • January 2024 witnessed a 1.1% rise in monthly construction output in volume terms, following three consecutive monthly declines, with a recorded value of £15,422 million for January 2024.
  • The monthly output increase stemmed from growth in both new work (1.1%) and repair and maintenance (1.2%).
  • Across sectors, six out of nine sectors experienced an upturn in January 2024. The primary contributors to this monthly rise were private new housing and non-housing repair and maintenance, showing increases of 2.6% and 1.9% respectively.

Read the full report here.

Download the ONS Construction update here.

Product Platform Rulebook Update

Product Platform Rulebook Update

by | 21 Mar, 2024 | Market data, Material Shortages

Delivered as part of the Government’s Transforming Construction programme, the Product Platform Rulebook is a shining example of what can be achieved when government and industry come together to drive change. The Rulebook remains one of the Construction Innovation Hub’s most influential outputs and forms a key enabler for the Infrastructure and Projects Authority’s (IPA) Transforming Infrastructure Performance (TIP) agenda. Given such potential, it is critical that government and industry find ways to continue this impact now that the Hub’s initial funded period has now concluded.

In this spirit, we are delighted to announce that the Construction Leadership Council will be taking over the reins of the Product Platform Rulebook in 2024 thanks to our new Industrialised Construction workstream. This work will see the Rulebook revised and re-released in the form of a new ‘Platform Playbook’, setting out a clear path to the adoption of platform approaches for social infrastructure delivery. The group is chaired by Ron Lang, former Chief Technical Officer of the Hub and now Regional Director at AtkinsRéalis.

“The Product Platform Rulebook and the concepts it contains present a logical path to a more industrialised, more productive construction sector. But this work is far from complete, and we continue to learn through our collective experiences of applying these concepts in practice. I am delighted to have the opportunity to lead the next step in its development through the CLC and thank my industry peers for continuing to commit their time and expertise for the collective benefit of our sector.”

The decision to pass the Rulebook over to the CLC for update has been warmly welcomed by leading figures within the former Construction Innovation Hub. The Hub’s Programme Director, Keith Waller, believes the Rulebook still has a powerful role to play going forwards:

“Yet another of the Hub’s output has found a new home to drive forward its legacy. Given that our analysis identified that the adoption of platform approaches in construction could unlock long term productivity gains of up to £7.8bn per annum, I am delighted the CLC will now be using its convening power to ensure these benefits can be achieved.”

Steven Yeomans, former Hub programme lead and now Chief Engineer for Construction at the Manufacturing Technology Centre believes the planned update shows what can be achieved through continuing collaboration:

“As the former lead partner of the Hub, we’ll continue to support this ongoing, transformative work through our participation in the CLC’s Industrialised Construction workstream. In doing so, we can enable the construction sector to address performance and productivity challenges.”

The new Platform playbook is expected to be published for comment in November with a series of supporting activities being planned for 2024. For more information, please contact ron.lang@atkinsrealis.com

CIJC Promulgation Notice

CIJC Promulgation Notice

by | 21 Mar, 2024 | Employment

The Construction Industry Joint Council (CIJC) has released an updated Promulgation Notice to account for the rises in the National Minimum Wage and National Living Wage starting from April 1st. The General Operative rate will be raised to £11.44 per hour, and the Apprentice rate for 19 to 20-year-olds will be increased to £8.60 per hour.

Download the document
Building Inspectors Extension

Building Inspectors Extension

by | 21 Mar, 2024 | Building Safety Act, Health and Safety

HSE Director of Building Safety, Philip White, has officially announced in a public letter to the industry an extension to the deadline for experienced Building Inspectors in England to finish their competence assessment. Qualified Building Inspectors must meet the following criteria and will now have until July 6 to complete their assessment:

  • Current Building Inspectors
  • Register as a Class 1 Registered Building Inspector (RBI) by April 6
  • Undergoing competency assessment by an approved scheme by April 6
  • Not informed by an approved scheme of failing the competency assessment twice

Building Inspectors meeting these conditions can continue their building control duties for the RBI class they are assessed for until July 6, by which they must upgrade their registration to Class 2, 3, or 4. The transitional arrangements are now part of the Code of Conduct for RBIs, and as of March 14, 3,261 Building Inspectors had applied for registration.

The Welsh Government has stated that Building Inspectors in Wales must register by April 6 and now have until September 30 to complete their registration.