Pensions reform and sickness absence on the agenda with DWP mandarin | EEF responds to government’s energy reforms | Government set to outline more thinking on plan to abolish Default Retirement Age | In the news | Week in review | The week ahead
Happy Christmas from all at EEF
This is the last Intelligence Briefing until January. It has been a busy year for EEF and in the next Briefing we will look back at some of our activity during 2010 and update you on our campaigning priorities for 2011. On behalf of all at EEF, we wish you a Merry Christmas and a Happy New Year.
Pensions reform and sickness absence on the agenda with DWP mandarin
We met this week with Sir Leigh Lewis, DWP Permanent Secretary, and his senior officials. In a constructive meeting we pressed the case for clarity on the introduction of pensions reform. Businesses need advance details so they can prepare for auto-enrollment in 2012. We also reported members' experience of the fit note and urged further work to inform and educate GPs. Sir Leigh retires very shortly, but this meeting helped to cement a strong relationship with DWP which will stand us in good stead with his successor.
For further information contact Steve Pointer, Head of Health and Safety Policy
EEF responds to government’s energy reforms
The government published a major package of electricity market reform proposals on 16 December 2010. The aim of the proposals is to help the UK meet its CO2 reduction targets by giving greater certainty over returns on investments in low-carbon technologies like nuclear and wind power. If implemented, they would represent the most radical intervention in the market since its privatisation and liberalisation in the 1990s. Whilst the proposals are designed to reduce the long-run cost of cutting emissions, they are projected to increase energy bills over the next 10-15 years.
EEF attended a launch event hosted by Chris Huhne, the Secretary of State for Energy and Climate Change. We used it as an opportunity to raise concerns about the impact of the proposals on industrial competitiveness. EEF has called for on the government to offset the cost of the new measures by reducing the burden imposed by existing measures like the Climate Change Levy and the CRC. Details of the proposals can be found on the Department of Energy and Climate Change Website.
For further information, contact Roger Salomone, Energy Adviser
Government set to outline more thinking on plan to abolish Default Retirement Age
The government will shortly publish its response to the consultation to phase out the default retirement age. Ahead of this, we ran a roundtable with members to address the real challenges that this will pose for them, what we should be seeking from government to help them to address and offset them and what services we should develop to assist members. The group of members has promised to keep working with us to help monitor the impact on them of the DRA abolition and to develop our services. We shall provide further details of the proposal once it is published.
For further information contact Ruth Nodder, Principal Legal Adviser
In the news
Energy issues took centre stage in our media coverage this week. We were quoted ahead of the announcement on Energy Market Reforms and Carbon Pricing in the Daily Telegraph, whilst the same paper reported our response, together with The Independent, FT (registration required) and the Times (only available online by subscription). The Times also reported our response to the funding announced for the Manufacturing Advisory Service whilst news of our latest pay settlements data was reported in City AM. Coverage for our recent 'Shape of British Industry' report continues with a major feature in the December issue of The Manufacturer magazine.
Week in Review
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 Consumer Price Index
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CPI annual inflation moved up again, to 3.3% in November. The most significant upward contributions to the change in the CPI between October and November were from: food and non-alcoholic beverages; clothing and footwear; and furniture, household equipment and maintenance. There was also some downwards pressure from the price of recreation and culture.
In the year to November, RPI inflation was 4.7%, up from 4.5% in October. The main factors affecting the CPI also affected the RPI. |
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 Labour Market Statistics
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The ILO measure of unemployment rose by 35,000 over the quarter to 2.5 million. This is the first quarterly increase in unemployment since the three months to April
2010: the three-month unemployment rate is now 7.9%. Conversely, the claimant count measure of unemployment – which records the number of people claiming Job Seekers’ Allowance – fell by 1,200 to 1.46 million. The claimant count rate remains at 4.5%. There are 156,700 fewer claimants than at this point last year. |
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 Bank of England Inflation Expectations
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The Bank of England’s survey revealed that median inflation expectations rose from 3.4% to 3.9% in November. Expectations are now at their highest level since August 2008. |
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 Retail Sales
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The volume of retail sales grew by 0.3% in the month to November compared with an upwardly revised figure of 0.7% in October. |
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 EEF Pay Settlements
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The three-month average pay settlement was 2.0% in November, up a little from 1.8% in October, though this figure is based on only a small number of settlements. 19.8% of pay settlements were between 0.0% and 2.0% in the three months to November and the proportion of pay deals between 2.0% and 3.0% was 39.7%. The monthly average pay was 2.0% in November, compared with a revised figure of 2.2% in October. |
The week ahead
Mon 20th: Trends in Lending
Tue 21st: Public Sector Finances
Wed 22nd: Balance of Payments; GDP (Q3); Business Investment
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