December WorkerTech Roundup

As some of us wrap up the last full working week of the year, we do so against a background of continual change, transformation and hopeful progress.

Our portfolio companies have seen all the above throughout this eventful year, so in this newsletter, we take some time to celebrate the milestones seen by our incredible founders in 2024.

We also reflect on learnings from a new report from the Resolution Foundation, which sheds light on how low-to-middle-income families experience the labour market. This is the second in a series of reports from the Unsung Britain project – with support from JPMorganChase –  which is aimed at understanding the economic circumstances of today’s low-to-middle-income families.

Lastly, in the spirit of festive fun, we put our favourite delivery worker, Santa, to the test when it comes to his employment practices. Is he compliant, or will he be receiving coal in his stocking?

And now, if you’ll allow me the ultimate dad joke…

See you next year!
Aish Moothan
Ventures Manager

Spotlight on: Low-income families and the labour market

A new report from the Resolution Foundation sheds light on the labour market experiences of low-to-middle-income families and how they have evolved over the last 25 years.

Employment remains a key determinant of income, but it is not always enough to lift families out of poverty. Employment rates have risen significantly among low-to-middle-income families. In 1996-97, just 54% of adults in these households were in work, compared to 64% in 2022-23. Groups that have traditionally faced barriers to work, including single parents and people with disabilities, have seen particularly large gains, with employment rates increasing by 17 and 13 percentage points, respectively.

However, during this period, in-work poverty has increased. Today, 54% of families in poverty have at least one member in work, compared to 44% in 2000-01.

Low-to-middle-income workers are more likely to be in low-paid or insecure roles. Nearly one in five low-income workers earn close to the minimum wage, compared to just 5 per cent of higher-income workers.

Job insecurity is also more prevalent. While the majority of low-to-middle-income workers are in secure, permanent employment, a significant minority face greater precarity. They are more likely to be in temporary roles, on zero-hours contracts, or solo self-employed, leaving them vulnerable to income instability.

Low-to-middle-income workers are less likely than their higher-income counterparts to report job satisfaction. In 2022-23, 77% of workers in the lowest income quintile were satisfied with their jobs, compared to 84% of those in the highest quintile. Irregular hours, poor management, and a lack of control over working patterns are key sources of dissatisfaction.

That said, workers value more than just pay. Many prioritise good relationships with colleagues and managers, as well as job security. These softer factors, such as trust and respect in the workplace, are often seen as essential to a positive working environment.

Our portfolio companies Breakroom and Organise have made progress in bringing these factors and issues at the workplace to the fore, by using tech to give workers a voice. You can read more about their work in our 2023 impact report (p.s. do keep an eye out for the 2024 edition of our annual impact report in the new year).

From the world of WorkerTech: Celebrating our Portfolio

• Breakroom was acquired by US-listed company ZipRecruiter earlier this year.
  • This is our first portfolio exit and represents a firm case for the commercial potential of impact companies.
  • The founding team will continue progressing the company’s mission, including into the American market.
• TaskHer has had an incredible year of new launches, partnerships and news coverage
  • TaskHer has launched painting and decorating services on their platform, in partnership with COAT Paints.
  • A mention in Vogue, followed by a feature in BBC News.
  • TaskHer has just launched their crowdfunding campaign. Learn more about their incredible year and how you can be part of the movement to get more women into skilled trades here.
• EarlyBird has seen a series of wins this year, including:
  • Raising £800k in funding this year from investors like Google, Ada Ventures and Resolution Ventures.
  • The team won Digital Solution of the Year at the Employment Related Services Association Employability Awards.
  • They are one of 3 finalists for the Mayor of London’s No Wrong Door innovation challenge.
• Portfolio company Valla surpassed their Seedrs crowdfunding campaign, closing at 181% of their originally targeted amount.
• Mobilise has seen incredible growth
  • They launched across 13 councils in the North East of England (read more about their expansion strategy here)
  • Founder James was interviewed by Sifted magazine
  • The team is growing and in search of a Full Stack Developer. Find out more here.

Slinger’s founder Theo Lee-Houston was recognised as Entrepreneur of the Year at the Black Tech Achievement Awards

‍⚖️ All in good humour: Compliance or Coal? Looking at Santa’s Labour Practices. 
*Inspired by Lyons Davidson’s “Ho Ho No? A Legal Assessment of Father Christmas as an Employer”

Would Santa’s workshop meet employment law standards if it operated in the UK? Though Santa’s North Pole setup is beyond national jurisdiction—thanks to treaties like the UN Convention on the Law of the Sea— we took up the festive exercise to examine how his practices might fare under UK regulations.

Pay and Contracts 

UK law mandates that employees receive written contracts from their first day and earn at least £11.44 (for those aged 21+) per hour under the National Minimum Wage Act. Evidence from movies suggests Santa’s elves might not be compensated at all. Santa would breach wage laws without pay and fail to provide legally required pay slips. Running a multinational operation with an unpaid workforce would also raise significant ethical concerns from consumers and believers alike.

Working Hours and Rest Breaks 

UK regulations cap average working hours at 48 per week unless employees opt out in writing. For an operation the size of Santa’s workshop, securing individual agreements for millions of elf workers would be an administrative impossibility. Additionally, workers are entitled to regular rest breaks and at least 28 days of annual paid leave. While the intensive demands of gift production likely leave little room for such provisions, given the seasonal nature of Santa’s operations, it is possible that elves have generous leave during the summer months.

Health & Safety Standards 

The Arctic environment presents unique challenges. If Santa operated in the UK, the Health and Safety Executive would expect robust protections against workplace hazards. From machinery to environmental risks, compliance with the Health and Safety at Work Act would require significant investment in worker welfare and site safety measures.

Addressing Worker Grievances 

In the UK, workers have clear pathways to resolve disputes, including employment tribunals (portfolio company Valla explains how those work here). Issues around pay, hours, or unsafe conditions would likely lead to legal action. A properly set up human resources system would be essential for managing such claims and ensuring fair treatment.

While Santa’s workshop may run on magic and tradition, translating his model to the UK would expose serious gaps in UK labour law compliance.

Get involved

The Impact Shakers Accelerator is open for applications.
A 6-month tailored accelerator for underrepresented founders in Europe to scale their impact startup. The impact programme comes with 150k in funding and support. Check out the programme to apply here.

⚡Ingenuity Impact has opened up registrations for its entrepreneurship and innovation programme. The programme is free and accessible nationwide to help turn innovative ideas into ventures with potential for impact. If you have an idea within their 3 key challenge themes (stronger communities, health and wellbeing or climate change) you can apply here.

Applications are open for Bethnal Green Ventures’ Spring 2025 Cohort. Companies receive £60k in investment and access to BGV’s extensive network of mentors and advisors. You can learn more and apply here.

Ufi VocTech Trust will be opening applications for their Activate grant fund on January 6th. Grants ranging from £30k-£60k are available for projects lasting 3-12 months which have the potential to transform how adults gain and maintain skills for work. Pre-application workshops are available to book here.

✨ Investment from Resolution Ventures 
Apply for direct investment from Resolution Ventures. We accept applications from WorkerTech ventures on a rolling basis. Or you can book a slot in our office hours for an initial conversation.