4 Accepted

The food and drink sector has responded to the current labour shortage by increasing wages...

Conclusion
The food and drink sector has responded to the current labour shortage by increasing wages and introducing various incentives. However, this has not always been successful and, where it has worked, it has often resulted in labour movement and churn within the sector leading to higher labour costs which will have to be passed on to the consumer. This shows the need, at least in the short term, to increase the overall supply of labour through revised immigration measures to address the current crisis.
Government Response Summary
The government describes actions already taken, including engaging with employers and stakeholders about the EU Settlement Scheme and new immigration system and does not intend to stand up the Food Resilience Industry Forum regularly in response to labour shortages.
Paragraph Reference
26
Government Response
Accepted
HM Government Accepted
respond to disruption. This was successfully demonstrated in response to unprecedented disruption to both supply and demand throughout the Covid-19 response. Since March 2020, the Home Office has delivered an extensive, wide-reaching campaign and engagement programme targeting employers and other interested parties about the EU Settlement Scheme and new immigration system. As of mid-May 2022, the Home Office has delivered over 550 events reaching over 40,000 stakeholders. The agriculture and food supply sector has been present at many of the cross-sector events and the Home Office has also specifically led or participated in 17 agriculture or food supply sector focused events during this period. Defra does not intend to stand up the Food Resilience Industry Forum regularly in response to labour shortages in the food and farming sector. Instead, Defra will continue to engage with industry through a range of stakeholder engagement and forums and to monitor any key pressures in the labour market. The Home Office will attend Defra forums to engage on immigration issues when relevant, alongside other departments, such as the Department for Education and Department for Work and Pensions to have a rounded discussion on workforce capacity issues. A Food Resilience Industry Forum can be stood up at short notice should the need arise.