Funding Boost For Acas

The Government will today announce support worth up to £37 million for the employment relations service Acas to help prevent work place disputes unnecessarily going to employment tribunals.

The measures are part of package designed to simplify the dispute resolution system, saving business and employees what, according to the government estimates, could be over £175m a year.

The extra funding, over three years, will allow Acas to boost its helpline and advice services and offer help at any stage of a dispute to make sure it is never too late to choose an informal resolution.

Minister for Employment Relations, Pat McFadden, said:

“The link between successful employment relations and productivity is clear. Early action can often prevent the need for tribunals, bringing enormous benefits to business and employees.

“We want to move from the current overly rigid and legalistic process to one where there is more conciliation between employers and employees.

“This new system will strike a balance between ensuring workers can protect their rights through employment tribunals while helping them to resolve disputes as early as possible.”

Recent research from the National Institute of Economic and Social Research showed that for every pound Acas spends, over £16 is returned, equating to £800 million a year in benefits to UK companies, employees and the economy.

Acas Chair, Ed Sweeney, said:

“Acas provides a first-class service to employers and employees, based on impartiality, integrity and expertise. We also give the taxpayer outstanding value for money, with every pound invested in us resulting in a £16 benefit to the economy.

“This new investment will enable us to increase our effectiveness and spread the benefits more widely. I am delighted by this news and recognition of the unique and valuable role that we play.”