REC calls on government to lower hiring costs. Plus, £110m in public sector tenders for agencies
Here’s a news brief updating recruitment agencies and agency contractors on developments that could impact hiring trends
The Recruitment and Employment Confederation (REC) has called on Ministers to take immediate action to lower hiring costs. That’s because severe skills shortages continue to create serious operational challenges across sectors including IT, engineering, and finance.
The REC urged government leaders to ease business pressures, stating that “policymakers must ease hiring costs” to jump-start national employment.
The group wants targeted National Insurance relief when businesses employ young workers under twenty-five. They also recommend giving recruitment agencies an active seat on local skills boards.
However, recruiters fear that broader labour market changes could easily increase overall operational costs for recruitment businesses.
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£110 m boost for staffing agencies
Despite wider economic pressures, recruitment agencies have secured access to a major new public sector funding route, it has been reported. Last week, industry body APSCo highlighted the APSCo Connect2Framework Tender Notice.
The framework agreement is worth £110 million. Its purpose is to supply interim, temporary and technical staff to public sector organisations nationwide.
It offers staffing firms a structured route to win profitable government recruitment contracts. For contractors and umbrella company workers, this large framework could create steady public sector work assignments.
The objective is to guarantee skilled professionals reliable project income despite ongoing economic uncertainties across the private sector.
The opportunity covers staffing disciplines, including:
- Administration and Business Support;
- Customer Services;
- Finance;
- Human Resources (HR);
- ICT and Digital;
- Procurement;
- Engineering;
- Housing;
- Facilities Management;
- Environmental Services;
- Project and Programme Delivery; and
- Technical Specialist roles.
According to APSCo, the deadline for tender submissions is 25 August 2026. The framework is due to commence on 5 October 2026.
You can view the tender notice on the Find a Tender service.
