£123m spent in the last year with social enterprises thanks to Buy Social Corporate Challenge

With the Labour Party returning to power, the issue of worker rights has emerged as a priority for government. The New Deal for Working People is the proposed flagship reform, offering a suite of policies aimed at enhancing protections and banning exploitative practices. While trade unions have been intimately involved in the development of this package, Labour has also been keen to stress the desire to work in partnership with business. Sector groups and leaders have welcomed some of the ambitions and policies announced in Labour’s election campaign - but, as the Confederation for British Industry (CBI) noted, there remain “legitimate concerns” within the business community[1]. However, our recent Social Enterprise Knowledge Centre research shows that such concerns are short-sighted, considering the impact that deteriorating working conditions have had on our economy. Since the 2008 financial crisis, wages have stagnated and living standards have plunged, largely due to employers’ growing power over workers[2]. Short-term gains from weak working rights are offset by the long-term damage poor working conditions have on the wider economy. Poor wages stifle demand and limit growth. Insecure work contracts lead to high staff turnovers, generating costs in the replacement process. Lack of investment in staff contributes to stagnating productivity and undermines the ability of businesses to invest in the future. These are not the economic conditions in which business can thrive.  Social enterprise has long recognised the inherent value of good working conditions, leading the way for wider business– as evidenced by some of our latest research findings: 8 in 10 social enterprises employers are paying the real Living Wage 77% of social enterprises are providing some form of workplace training 95% of social enterprises offer some form of flexible working arrangement[3] Far from being a burden to these businesses, many social enterprises have found investing in the quality of their employment offer enables them to retain and grow their workforce, even in the face of persistent crises. Social enterprises are demonstrating valuable business insights into how Labour should approach its New Deal for Working People. Our latest Social Enterprise Advisory Panel report suggests that social enterprises are broadly supportive of Labour’s proposals, but also some areas that deserve careful attention: Public sector contracts – Many social enterprises provide critical public services and rely on public sector contracts. It is imperative that these are properly funded, so that social enterprises and other businesses can pay staff fair wages and maintain decent working conditions. Flexibility where appropriate – While social enterprises are vocal critics of exploitative contracts, in some cases, flexible contracts can be mutually beneficial to both the business and their employees. The focus should be on ensuring that such contracts are available, providing workers are happy with terms, and with enhanced protections to provide additional security. New ownership models – From co-operatives to employee-owned firms, there are diverse ownership models that give workers a direct stake in their business. We need more support to encourage the establishment and growth of businesses where workers lead from the front. Good jobs are the foundation of a prosperous economy, and while the details will need to be carefully considered, social enterprises continue to help deliver better working conditions. Social enterprises show that business should not fear the New Deal for Working People but embrace protections that will raise living standards, improve incomes, boost productivity and create an economy where businesses and workers can thrive. You can download our latest Social Enterprise Advisory Panel report using the link below: [1] https://www.cbi.org.uk/articles/is-your-business-budget-ready/ [2]https://cep.lse.ac.uk/pubs/download/ea066.pdf?_gl=1*lmgqij*_gcl_au*MTc1ODIxMTQyNi4xNzIyNTExNjky*_ga*MTc4MDcyNjUzLjE3MjI1MTE2OTI.*_ga_LWTEVFESYX*MTcyNDE0ODk3Ni4xLjAuMTcyNDE0ODk4MC41Ni4wLjA. [3] https://www.socialenterprise.org.uk/app/uploads/2024/07/Good-Work-Working-conditions-in-social-enterprise-July-24.pdf

City Health Care Partnership’s (CHCP) annual patient and colleague surveys show a clear link between happy staff and happy patients. 76% of colleagues completed the survey on what it’s like to work at CHCP, a local NHS organisation providing community health and care services in Hull, the East Riding and Merseyside. 91% said they would recommend CHCP to friends and family who needed care or treatment. This is reflected in the annual patient survey, which asked 2,422 people about the service they’d received from CHCP last year. 93% said they were satisfied with their overall experience but even more striking was the 98% of patients who said they were treated with care and respect by their health professional; 96% said they were happy with the amount of time their clinician spent with them. Andrew Burnell, group chief executive at CHCP, says these results show that when people feel valued and appreciated, they pass this on to their patients: “As a registered nurse myself, I know what it’s like to work in our services and I know that feeling that you’re doing the best you can for your patients is crucial to a positive experience of work. “The health and wellbeing of all our colleagues is vitally important; in the survey they mention the positive work culture, job satisfaction and the feeling of being valued as reasons for 81% of them recommending CHCP as a place to work. “And our patients reap the benefits of this. They talk about the friendliness, professionalism and efficiency of the people looking after them and that our staff are caring and supportive. “But there is always room for improvement and we are looking at the areas where we need to do better for colleagues and patients. We are working on reducing waiting times and making it easier to get an appointment. “One of our patients said, ‘You can’t improve on excellent’ but I want us to try! We are delighted with these results, but we can always do better.”

Minister for Climate, Kerry McCarthy, visited Low Carbon Hub last month in her first ministerial visit, to learn more about community energy and the innovation work we’re doing at the grid edge to drive the transition to Net Zero. Low Carbon Hub welcomed a delegation from the Department for Energy Security and Net Zero including Kerry McCarthy, Minister for Climate, Katherine Wright, Deputy Director, Local Net Zero Strategy Directorate and Anca Mihalache, Head of Smart Energy Policy. The visit kicked off with a roundtable discussion highlighting the role that community energy is already playing in the transition to net-zero, and the impact that policy changes to support greater community ownership and enable local energy trading could achieve. The Minister also took time to take in a tour of Osney Lock Hydro and a local business, the Vishuddah Yoga Centre. Both participated in Osney Supercharge trial, part of the £40 million Innovate UK funded Project LEO (Local Energy Oxfordshire.) Minister for Climate Kerry McCarthy said: "Tackling climate change is a shared challenge that can start at home. In my first visit as Climate Minister to Osney Hydro Lock and the Low Carbon Hub, I’ve seen first-hand the hugely important role local communities are playing in our mission for clean power – with investment funnelled straight back into innovative energy projects. As we accelerate towards net zero, we want to see more of this. That’s why through Great British Energy we will create the Local Power Plan, so that local authorities and communities are empowered to support cleaner and more secure homegrown energy for their towns and villages." Dr Barbara Hammond, CEO of Low Carbon Hub said: "Low Carbon Hub was pleased and proud to host the Minister’s first visit in her new role and to share with her some of the pioneering and inspiring work communities are doing in Oxfordshire. We are tremendously excited by the potential of the Local Power Plan to make sure the transition happens in a way that can truly involve, and benefit, everyone." Osney Supercharge set out to understand how better collaboration around the way we use, store and generate electricity can sit at the heart of a smart, low carbon, locally balanced energy system that creates opportunities and benefits people in an equitable and fair way. The tour brings to life the challenges and opportunities that arise in the transition to a net zero. It’s available to experience digitally here. During the roundtable discussion the Low Carbon Hub team were joined by Malcolm McCulloch (University of Oxford), Eleanor Watts (Rose Hill & Iffley Low Carbon), Cllr Anna Railton from Oxford City Council and Cllr Pete Sudbury from Oxfordshire County Council, who were able to bring their perspectives to the table. Our CEO Barbara Hammond chaired the discussion with topics ranging from the importance of ‘grid edge co-ordination’ to bridging the gap between strategic local area energy planning and delivery on the ground and need for social justice. As Eleanor stressed, we must make sure we bring everyone along on the transition to net zero. A takeaway we can all get on board with. About Low Carbon Hub Low Carbon Hub is a social enterprise that’s out to prove we can meet our energy needs in a way that’s good for people and good for the planet. Our work includes developing community-owned renewable energy projects in Oxfordshire, enabling homes and businesses to reduce their energy demand, and innovative energy trials accelerating the transition to net zero energy system. Because we are run for the benefit of the community, we use all of our profits to fund community-led action on climate change. Find out more: lowcarbonhub.org