Alma Economics was commissioned by the Department for Environment, Food and Rural Affairs (Defra) and the Seasonal Worker Scheme (SWS) Taskforce to investigate the potential economic and welfare impacts of implementing the Employer Pays Principle (EPP) within the UK horticulture sector. The EPP stipulates that the costs of recruitment should be borne by the employer and aims to reduce worker debt and exploitation.

Our approach began with a desk-based review before conducting over 60 interviews with various different supply chain actors. This allowed us to map the supply chain and understand the scale of recruitment costs faced by seasonal workers. An economic model was then developed to estimate the impacts of different EPP implementation models on outcomes, including grower profitability, job losses, output levels, worker indebtedness, and consumer grocery prices.

Our findings suggest that EPP could eliminate recruitment-related debt for over 18,000 seasonal workers annually, at an estimated cost of £43 million per year. The impact on consumer grocery prices would be minimal, at just 1-3p per weekly food shop. However, growers could face significant financial burdens, potentially leading to farm closures, job losses, and reduced domestic food production unless costs are shared across the supply chain.

The report is published here.