October WorkerTech Roundup

This month’s newsletter brings you a world-first. We’ve been working with our friends at Bethnal Green Ventures to create the first market map of WorkerTech innovation in the UK. The State of WorkerTech in the UK report is an in-depth reflection of the social investment activity in the space and a taxonomy of the ventures working to change the face of work across the country.

And, while the upcoming Budget dominates headlines (and tune in on Thursday to hear the reactions of RF economists) we’re focused on the workers’ rights reforms that are also on their way. Most of them take effect in 2026 but are being described as a ‘major shakeup’ and ‘the biggest upgrade to worker’s rights for a generation’. We look at what we know about the Bill so far and what impact it is likely to have in the long and short term.

We’re also revisiting the fight against exploitation in Leicester, where garment workers are fighting back against the factories which have long been paying them below minimum wage.

As a ✨bonus read ✨: The updated Living Wage Rates from the Resolution Foundation and the Living Wage Foundation, have been released; a change which will result in a pay rise for millions of British workers.

And with all that, we will see you next month,
Aish Moothan
Ventures Manager

How Far We’ve Come: The State of WorkerTech in 2024 Report

Resolution Ventures has been championing WorkerTech since 2019, supporting ventures that transform work for low-paid and precarious workers. Partnering with Bethnal Green Ventures, we launched the WorkerTech Partnership in 2020 with a clear focus on improving pay, progression, power, and wellbeing in sectors where low-paid or insecure employment was prevalant.

Our journey together has led to nine co-investments with BGV and ten additional companies backed by Resolution Ventures (read about our recent successful exit here) all while navigating massive shifts in work due to the pandemic and AI.

We’ve seen the sector transform, grow and evolve – and so we are excited to share the newly launched State of WorkerTech in the UK report. This comprehensive look at WorkerTech funding includes the first-ever WorkerTech Market Map—a detailed database of companies creating better futures for low-paid and insecure workers.

As the world of work continues to change, defined by dramatic tech shifts and legislative reform, we see WorkerTech as a sector primed for growth and innovation. We data and learnings like those shared in the report encourages founders and funders alike, to get involved.

The Government’s Employment Rights Bill: A thorough approach to reforms

The Government’s new Employment Rights Bill aims to reform workplace protections, focusing on transparency, flexibility, and fair treatment for workers.

The Bill is primarily a legal framework for the planned reforms – a lot of the critical specifics are yet to be determined through consultations with unions, employers and legal experts.

Among the core provisions are measures to address zero-hour contracts, enhance workplace protections around dismissals, sickness pay and parental leave and make flexible working arrangements more accessible.

Yet, crucial details about these reforms, like the structure of guaranteed hours contracts, eligibility, and probation period specifics, remain undecided. Analysis from the Resolution Foundation has concluded that this is for a good reason.

Many of the reforms being proposed mark a significant change from existing rules and this is an indication that the Government wants to develop policies through consultations with unions, employers and legal experts. The Bill and its initial readings in Parliament mark the start of a process rather than the end. The Government will likely spend 2025 consulting on individual reforms, which means most of them will take effect the following year at the earliest.

However, for the 2 million workers who continue to be on zero-hours contracts and for the millions more who still don’t have access to paid sick leave or paid parental leave, its important that the Government get this right. The Bill represents the potential for genuine improvement for those millions of British workers. The Government’s gradual and precautionary approach indicates that they are optimising for effectiveness and longevity of the reforms.

You can read our colleague Nye Cominetti’s comments on the Bill here.

WorkerTech stories

✊Revisiting the Leicester garment workers fighting against exploitation

The increasing adoption of the Living Wage rate is a clear sign of progress when it comes to worker wellbeing in the UK, the National Living Wage is what the majority of low-paid workers get paid. However, issues with enforcement can lead to exploitation, like that seen in the Leicester garment industry.

While many British brands have moved production out of the country to lower costs, Leicester remains a major hub for garment production, employing thousands of workers. Its predominantly minority garment workforce – including immigrants vulnerable to exploitation – faces low wages, high unemployment, and limited options. The pandemic and resultant lockdowns lifted the lid on some of these issues and due to intense public pressure, employers in Leicester began to address them.

However, rising costs have threatened to undo some of that progress. Recent reports show that cost-cutting measures have led to a return to exploitative practices like sub-minimum wages, lack of holiday or sickness pay and poor working conditions – despite the reforms that were made during the lockdowns.

Analysis from the Resolution Foundation has consistently discussed how existing employment regulation needs better enforcement to actually protect low-paid workers. In the Economy 2030 Inquiry report, we proposed a series of what we call  ‘Good Work Agreements’ for sectors with entrenched issues of exploitation, poor-quality work, and underpaid wages. GWAs would act as frameworks for workers and employers to address specific problems in their industry.

It is yet to be seen whether the new Government is prepared to take on new ideas the likes of the one described above. As part of the Employment Rights Bill, it is proposing the creation of a Fair Work Agency that would consolidate the enforcement functions for all employment rights. Its also planning on introducing an Adult Care Social Negotiating Body, to boost the bargaining power of adult social care workers.

Highlights from the WorkerTech portfolio:

EarlyBird is growing!
The employability support platform is looking for a Senior Founders Associate to get stuck into the business as they grow. If you’re someone who thrives when working across a range of business areas and likes to take ownership and deliver then this might be the role for you.

You can view the job specification here and applications are being reviewed on a rolling basis.

Get involved

London Social Ventures launched this month. This is an initiative aimed at help university students, researchers and academics to launch their own social enterprises. It will invest in and support 14 ventures initially but is projected to support up to 25 ventures over its pilot year. London Social Ventures is funded by the UKRI and is led by founder Amir Rizwan.

LSE’s 100x Impact Accelerator has opened applications for its 2024-2025 Cohort. The 12-week accelerator programme offers social ventures a £150,000 grant, access to the university’s expertise and bespoke support from mentors. Find our more and apply here.

GoodTech Ventures is hosting a Showcase for its latest cohort of impact-led tech ventures. Hear pitches from companies working in language learning, accessibility and clean air (to name a few).  You’ll also get to meet people working at the forefront of social innovation.
Register to attend here.
Location: Techspace Shoreditch
️ Date: November 21st, 2-5pm

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.