Fair Work Action Plan: impact report 2025

8. Evidence, monitoringand reporting

8.1 Aims

The delivery of the FWAP needs to be supported by a wide range of evidence to ensure that we are responding effectively to the current context and how it changes as economy and labour market outcomes evolve over time. We are also keen to draw lessons from other comparable countries to guide our ambition to be a leading Fair Work nation and to understand what works across the different dimensions of Fair Work.

8.2 Delivery overview

8.2.1 Our programme of action

The Fair Work Evidence Plan supports the implementation of the FWAP and future development of Fair Work policy, and sets out the approach the Scottish Government, engaging with partners, intends to take to:

• Monitor the progress Scotland is making towards becoming a leading Fair Work nation
• Monitor and evaluate the delivery of actions set out within the FWAP
• Develop and enhance the available data and evidence around Fair Work in Scotland to inform and support future policy development

The Fair Work Oversight Group was convened in August 2023 and provides an advisory and challenge function. The group meets biannually to drive progress in FWAP actions. Minutes of meetings and key publications are published on the Scottish Government website.

8.2.2 Update on the ONS Labour Force Survey and Annual Population Survey

The indicators in the Fair Work Evidence Plan draw primarily from official sources, in particular the Annual Population Survey (APS) produced by the Office for National Statistics (ONS).

ONS recently conducted analysis to assess the impact of falling sample sizes over recent years on the quality of APS estimates. ONS states that although the APS estimates are robust at national and headline regional level (which includes Scotland), there are concerns with the quality of estimates for smaller groups of the population such as minority ethnic groups [4]. ONS is continuing to address the quality concerns by assessing the impact of the improvements made to the data collection and methodology on sample sizes and communicating how the data should be used. Alongside its monthly labour market statistics release in May 2025, ONS published an assessment of Labour Force Survey data quality.

Given the increased uncertainty in the APS estimates, the Chief Statistician for Scotland published a statement in November 2024 [5]. This noted Scottish Government labour market analysts’ intention to conduct a detailed quality assessment of the APS data used in their publications to ensure their outputs continue to provide the best value and quality of data possible for users. In April 2024, phase one of the Scottish Government’s Quality Assessment of the Office for National Statistics Labour Force Survey and Annual Population Survey data for Scotland was published. Annex 5 of the report provides a detailed quality assessment of the results for the Fair Work Convention Fair Work Indicators.

Going forward, the most significant area of data development will arise from the ONS Transformed Labour Force Survey (TLFS). The TLFS is the long-term solution for providing high-quality and granular estimates of changes in the labour market. The survey is moving to being ‘online-first’, which will enable the ONS to increase the sample size, improve response rates and improve representativeness.

ONS has successfully tested an experimental, shortened TLFS questionnaire and continues to undertake quantitative and qualitative research and methodological development. A new TLFS design will include a short longitudinal ‘Core’ labour market-focused survey as well as a separate cross-sectional ‘Plus’ survey to provide wider socioeconomic, household, and local data. Work is under way to make the new TLFS design operational, and ONS intends to transition to TLFS as the main source of headline labour market statistics by November 2026. However, ONS states that ‘transition timing will be data-led and it could be 2027 if our assessment or user needs require more data to be collected and assessed.’ The Scottish Government will require further information from ONS on the outcome of this work to fully explore and understand the impact the TLFS will have on Scottish labour market data. Further detail on recent developments around the TLFS is available in ONS’s recent Labour market transformation – update on progress and plans - Office for National Statistics – July 2025.

8.3 Delivered to date

• The Fair Work Evidence Plan was published in January 2024. This set out how the actions outlined in the FWAP would be evaluated and identified indicators for monitoring progress towards the FWAP outcomes.
• Scottish Government Labour Market Statisticians intend to publish the Fair Work measures available from the ONS APS as a standalone output.
• As outlined above, Scottish Government Labour Market Statisticians are currently undertaking a quality assessment of the ONS APS data for Scotland. Phase one of the assessment has been published, and they are now progressing with phase two, which will focus on available options to improve Labour Market Statistics for Scotland. The extent of the data that can be published will not be fully known until after these assessments have been completed.
• The Fair Work Evidence Plan identified areas where we would seek to build the evidence base to enable barriers to Fair Work to be identified and addressed through future policy development.
• Evidence reviews on the contribution of unpaid care to closing the gender pay gap and international practice on supporting employment for disabled people were taken forward in summer 2024. These papers have been published on the Fair Work Oversight Group webpage.
• A supplier has been contracted for the evaluation of Fair Work First, which will run until July 2026. The evaluation aims to assess Fair Work First implementation, impact on organisations and workers, and differences before and after conditionality, while identifying good practices and challenges such as organisational changes and barriers. The project will provide ample opportunities for stakeholder engagement.
• Evaluation of the Minority Ethnic Recruitment Toolkit was undertaken by Ipsos Mori. Officials are reviewing the findings to inform an updated version of the Toolkit for publication.

8.3.1 The Undervaluation of Women’s Work

In 2021 the Scottish Government commissioned research to identify practical mechanisms and approaches used internationally to redress the undervaluation of women’s work, along with evaluation of their effectiveness and applicability in the Scottish context. This research was to add to the evidence base and to inform policy approaches to tackling the drivers of the gender pay gap. The research focused on identifying measures that would support women in traditionally low-paid jobs in social care, early learning and childcare, retail, catering, and cleaning.

The report highlighted important issues and helpful recommendations. Many of these align with the ambitions of the FWAP and have helped inform areas of policy and delivery across government that are within devolved competence including:

• Significant developments in Fair Work Agreements across sectors outlined in Chapter 6
• Providing workers in low-paid sectors channels for effective voice, which has been a condition of Fair Work First criteria since July 2023
• Progressing sectoral bargaining for the commissioned adult social care sector in line with the recommendations of the Fair Work Convention
• Providing resources to union members and representatives to support workforce development through Scottish Union Learning, and the Fair Work in Action Fund
• Undertaking an evaluation of Fair Work First before exploring options to extend conditions to other forms of support
• Updating the Fair Work First Guidance to enhance advice given to organisations on how to address pay and employment gaps
• Public Sector Equality Duty (PSED) improvement activity is underway to extend pay gap reporting regulations on listed authorities to report on ethnicity and disability pay gaps. We have also established a PSED Improvement Stakeholder Reference Group to inform work in shaping the Scottish Government’s future PSED improvement activity beyond 2025
• Launching a Fair Work digital hub, which includes a section for employers on actions they can take to reduce the gender pay gap such as signposting to advice on how to undertake job evaluations to support equal pay.

We continue to consider recommendations raised in the research that fall outside devolved competence and are working with the UK Government on the development of provisions in the Employment Rights Bill and wider Make Work Pay agenda that support women. This includes engaging on the content of mandatory gender pay gap action plans as part of the reporting regulations, provisions that would enable the establishment of a Social Care Negotiating Body in Scotland, and the development of a Regulatory Enforcement Unit for Equal Pay.