UK consumers losing out over ‘jobs red tape’
CONSUMERS are losing out because of a surge in the number of people needing licences to do their jobs, a report claimed last night.
Research showed that the proportion of employees in the UK carrying out work that requires some form of official certification has doubled over the past 15 years.
One in five workers in Britain needs to hold some form of occupational licence to practise. And significantly more occupations are regulated here than in France, Italy and Belgium.
Details of the explosion in workplace red tape were revealed in the report published by the Institute of Economic Affairs.
It warned that the regulation was restricting job growth, forcing up prices and blocking many competent workers from possible opportunities.
Ministers should launch a blitz to cut back the widespread use of licencing schemes to boost the economy, the research claimed.
Report author Len Shackleton, head editorial research fellow of the Institute of Economic Affairs, said: “It is disturbing to realise that more occupations in the UK are now regulated than in France or Italy – countries which are typically associated with heavy employment regulation. The government should open up occupations to greater competition.”
The report argued that officials too frequently reacted to accidents or other mishaps by introducing new regulatory bodies.
Instead, it says that more responsibility should be placed on employers to regulate quality.
Registration schemes open to anyone of good character and financial probity were likely to be less restrictive than licensing, which often required formal qualifications, years of supervised work experience, testing and often significant payment.
Technological change had reduced the need for complex skills in many areas, Prof Shackleton said.
His report listed taxi drivers and farriers as jobs requiring licences where an overhaul could lead to a better deal for customers.
He says that allowing consumers to do more for themselves online rather than using licensed workers could produce a boost for the UK economy.