Advancing the skills of low-paid workers is essential if the UK is to remain globally competitive, says a new Social Market Foundation (SMF) report, sponsored by support services and construction group Interserve.

As part of its pioneering SustainAbilities plan, Interserve has worked closely with the SMF in the development of the new report - Making Progress: Boosting the skills and wage prospects of the low paid.

Interserve's input as a top 20 UK employer has helped develop and shape an innovative, cost-neutral scheme that is focused on giving people in low pay the tools and opportunity to progress.

The report highlights the fact that the number of people on low pay in the UK is high by international standards and that a large proportion of the workforce have only low-level skills. It identifies as a particular concern the one in eight workers over the age of 25 over who remain stuck in low pay for at least 12 months, representing some 2.9 million employees.


Making Progress argues that tackling low pay is also crucial as all political parties seek to reduce the benefit bill, with tax credits going to working households currently costing the state £21bn per year.

It calls for a radical new government-backed 'Skills for Progress' scheme to boost the skills and wages of those stuck in low pay, decrease the amount paid out in benefits to working households and improve the poor productivity of the UK economy.

Based on new calculations of the earnings boost that comes from training, Making Progress finds that the government would be able to spend over £2,000 on each person stuck in low paid work through a mixture of training costs and financial incentives, recouping the money through increased tax receipts and lower benefits pay out.

Interserve Chief Executive Adrian Ringrose, said: "This report is a welcome addition to the critical debate about how best to tackle the challenges of low-pay by focusing on developing peoples' skills as the key to increasing their income.

"With 50,000 employees in the UK Interserve is a major employer. We believe that skills must be a core part of any solution that aims to address the prevalence and persistence of low pay and the lack of progression within the UK working population.

"We believe that a real partnership between Government and business is the best solution to support economic growth through structuring real opportunities for the UK's lowest paid workers."

(CD)