From falling support for working mums to SMP rates: this week’s HR news digest

The New Startup Index says the number of companies incorporated is an 11.8% increase on 2022.

The first quarter of 2023 saw the most companies incorporated out of any quarter in 2023, with subsequent quarters slowing.

Of the female-founded businesses, 89% were solo director companies, compared to 87% for male-founded businesses. The report says: “While sole director companies can be positive contributors to the economy and may offer flexible working structures and opportunities to leverage individual expertise, they are more likely than multiple director companies to be consulting or personal service companies. This suggests that while there is a growing presence of women within the UK’s entrepreneurial landscape, many of the companies will be operating on a small scale.”

Between 2019 and 2023  the number of all-female or solo female director teams has grown by 26.2%, although the report says year on year the proportion of  companies being incorporated by female directors is stable over time. The majority of new companies incorporated in the UK have entirely male boards. For example, in 2023, all-male directors incorporated 68.7% of all new companies. 31% of companies incorporated in 2023 have mixed gender boards.

Recent insolvency figures show the number of companies that went bust last year in England and Wales hit a 30-year high, with more than 25,000 insolvencies registered in 2023 – the highest number since 1993.

High numbers of long-term sick recorded

The number of people off work due to long-term sickness in the UK has reached a record high of 2.8m, according to new figures from the Office for National Statistics (ONS) in the week that the UK entered a ‘technical recession’.

The figure is part of the 9.3m economically inactive individuals in the job market, with the inactivity rate remaining at 21.9% in the final quarter of last year. Experts warn that the strain on health services and long waiting lists may cause this number to continue rising. The Resolution Foundation highlights that the UK is the only G7 economy yet to return to pre-pandemic employment levels due to the high number of economically inactive individuals. The Institute of Directors (IoD) has described the record long-term sickness as a “particularly worrying sign of structural issues” in Britain’s jobs market.

Meanwhile, new figures from the Recruitment and Employment Confederation show the number of active job postings for Early Education and Childcare Practitioners in January 2024 was up 146.2% on pre-pandemic levels, showing the extent of the recruitment crisis in the sector ahead of the expansion of the Government’s childcare plans.

Environment charities lag behind on racial diversity

Workers at environmental charities have expressed their frustration with the lack of action on diversity and inclusion, despite public statements from employers.

A survey of the sector from the Race Report campaign shows that only around one in 20 workers identified as an ethnic minority, compared to one in eight in the wider UK workforce. Three-quarters of workers of colour reported they felt they belonged in their organisation – compared with 84% of white identifying workers. The research also found that the senior leadership of environmental organisations lacks diversity.

Call for doubling of SMP rate

The government should increase statutory maternity pay to £364.70 a week so new mothers are not forced back to work too early, according to UNISON and Maternity Action.

Both organisations are concerned some women are cutting short their maternity leave, skipping meals and making other difficult choices because they cannot afford to live on the current statutory weekly amount of £172.48.

UNISON and Maternity Action are urging ministers to more than double the payment at the very least so women receive the equivalent of the national minimum wage of £10.42 an hour.

A recent survey by Maternity Action on behalf of UNISON shows a quarter of women on maternity leave say they have gone without eating – sometimes all day – so they can afford to feed their families.

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