Keep Britain Working Review Last modified: February 2, 2026

SECTION GUIDE

What is the Keep Britain Working Review?

The Keep Britain Working Review is an independent report led by Sir Charlie Mayfield, published in 2025, that examines how the UK can strengthen its labour market, raise productivity, and support more people into good work.

Commissioned by the Government, the Review identifies barriers to employment, training, and career progression, and sets out practical recommendations to make the UK workforce more resilient, inclusive, and productive.

What does the Keep Britain Working Review aim to achieve?

The Review’s purpose is to ensure Britain remains a place where everyone who can work, does work — and where every job supports long-term growth and wellbeing.

It focuses on five key priorities:
- Increasing participation: Helping people who are economically inactive return to work, especially older workers, carers, and those with health conditions.
- Boosting productivity: Improving management capability and access to technology across SMEs.
- Enhancing skills: Making lifelong learning accessible and relevant to modern industry needs.
- Supporting job quality: Encouraging fair pay, flexible work, and good management practices.
- Improving regional outcomes: Tackling inequalities in employment opportunities between different parts of the UK.
Why the Keep Britain Working Review matters for HR and SMEs

For HR leaders and business owners, the Review highlights the strategic importance of people management and workforce planning.
Key takeaways include:
- HR as a growth driver: SMEs need to view HR not just as compliance, but as a performance lever.
- Upskilling managers: Leadership and people-management training deliver some of the highest productivity returns.
- Health and work integration: Managing wellbeing and reducing absence rates is a national economic priority.
- Employer collaboration: Partnering with local education providers and Jobcentres can help attract and retain talent.

Keep Britain Working Review

Key findings

Economic inactivity is rising
SMEs face persistent skills gaps
Management capability is a major productivity barrier
Flexible work drives inclusion
Data and digital skills are critical

Economic inactivity is rising

More than 9 million working-age adults in the UK are now classified as economically inactive — meaning they are neither in work nor actively seeking employment. Health issues, caring responsibilities, and long-term conditions such as anxiety and chronic pain account for a large proportion of this increase.

For employers, this represents both a challenge and an opportunity. Businesses that invest in wellbeing, occupational health, and flexible return-to-work pathways can access a largely untapped talent pool. The Review calls for stronger collaboration between employers, the NHS, and local Jobcentres to help people back into sustainable work.

SMEs face persistent skills gaps

According to the Review, around 40% of SMEs struggle to recruit skilled staff, particularly in digital, engineering, and management roles. Many smaller businesses report that training provision is fragmented, expensive, or not aligned to their needs.

To close these gaps, the Review recommends:

Expanding local skills partnerships between employers, training providers, and regional authorities.
Increasing awareness and uptake of apprenticeships and mid-career training.
Providing more targeted support for leadership and digital upskilling in smaller organisations.

Management capability is a major productivity barrier

The Review identifies weak management and leadership capability as one of the most significant barriers to UK productivity. Compared with leading economies such as Germany and the Netherlands, the UK invests less in management development, particularly at SME level.

Poor management practices are directly linked to:

Lower employee engagement and productivity
Higher turnover and absenteeism
Poorer adoption of new technologies

By contrast, SMEs that invest in structured manager training, coaching, and performance frameworks consistently outperform their peers.

Flexible work drives inclusion

Flexible working arrangements — including remote, hybrid, and part-time models — are proven to increase participation among parents, carers, older workers, and those with health conditions.

The Keep Britain Working Review emphasises that flexibility is no longer a benefit, but an expectation. Employers who fail to offer it risk excluding valuable talent and reducing their competitiveness in a tight labour market.

Data and digital skills are critical

The Review highlights that digital capability is now a core driver of competitiveness, particularly for SMEs. From data analytics to HR software, the ability to leverage technology improves efficiency, decision-making, and employee experience.

However, many organisations still rely on outdated systems and manual processes. The Review recommends a national push to support SME digital adoption — through grants, peer networks, and leadership mentoring.

What employers can do now

The Keep Britain Working Review makes one thing clear: employers play a vital role in boosting participation, skills, and productivity. For SMEs, now is the time to take practical steps that build workforce resilience and long-term competitiveness.

Start by conducting a skills audit to map current capability and plan for future needs. Identifying training priorities, succession risks, and digital skill gaps ensures investment goes where it matters most. At the same time, reviewing wellbeing and absence policies can help retain valued staff — especially where health or caring responsibilities affect attendance.

Developing strong line managers is also key. Training them in coaching and inclusive leadership improves communication, engagement, and performance. Employers should also strengthen local partnerships — working with colleges, job centres, and business networks to widen their talent pipeline and attract a more diverse workforce.

Finally, harness technology to track progress. Using HR software to provide real-time visibility of performance, absence, and engagement data — helping leaders make informed, evidence-based decisions that align with the Review’s call for smarter, more people-centred management.

Your Questions Answered

Everything you need to know about the Keep Britain Working Review

What is the Keep Britain Working Review?
It’s a government-commissioned report by Sir Charlie Mayfield that sets out how to improve UK workforce participation and productivity.
Who led the Review?
Sir Charlie Mayfield, former Chair of the John Lewis Partnership and founder of Be the Business, led the Review.

How does the Keep Britain Working Review affect small businesses?
The Review calls on SMEs to invest in management skills, digital capability, and employee wellbeing to drive sustainable growth.

Where to find out more A collection of hand-picked useful resources for the Keep Britain Working Review from impact HR and beyond

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Keep Britain Working Review Last modified: February 2, 2026

What is the Keep Britain Working Review?

What does the Keep Britain Working Review aim to achieve?

Why the Keep Britain Working Review matters for HR and SMEs