Company reglstratlon number 11263281 (England and Wal) Charlty reglstratlon number 1180718 (England and Wal) INSTITUTE FOR THE FUTURE OF WORK (IFOW) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
INSTITUTE FOR THE FUTURE OF WORK {IFOW) LEGAL AND ADMINISTRATIVE INFORMATION DrAlmafidon MBE M E Dalton S Khareghani G J Nuttall OBE D Barone Soares Dr S Black ProfG Neff Charlty number 1180718 Company number 11263261 Principal Jddress Somerset House Strand Lond IhC2R 1 L4 Reglsterod office Fleldfi8her RNerbank House 2 Swan Lane Londc EC4R 3 Ind•pgndenl examlngr Rogers Spencer Newstead House Pelham Road Nottingham NG5 1AP Bankern Metro Bonk PLC 1 SoLrthampton Rtr H¢ll)orn London 1B5HA
INSTITUTE FOR THE FUTURE OF WORK (IFOW) CONTENTS Page Trusttss. report Independent examingrfs rewt 12 statement of financlal activf(ies 13 she8t 14 ststement of cash flows 15 Note8 to the finan¢lal stalements 16-27
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2025 The Trustees present their annual report and finanoal statements for the year ended 31 August 2025. The financial statements have been prepared in accordanGe with the accounting policles set out in nol8 1 to th8 financial statement$ 8nd compty wth the tharity's memorandum and artides of association inrPorated 19 Marth 2018 as amended by cèrtificate of incorporation on change of name dated 30 May 2018, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charth.es preparing their accounts In accordance with the Finanual Rep)rtlng Standard applicable in the UK and Republic of Ireland IFRS 1021 leffecllve 1 January 20191.. ObJ•ctlvè8 and adl¥ltlo8 The Instte for the Future of Work {IFOW) is an independent charitabl8 tru51 with a misson to shape a tsirer futwe through bettgr work. Our goal is to help everyone flourish through this period of technological transfomiation, and ow bglief is that creating, transitioning into, and sustslnlng good work is the best Way to athle thi$. The charriable objecls of the organisalion, a$ Set out In the artlcles of incorporation, ore as follows.. To promtsle the educatlon of the publlc around chaTrJes to the worfd of work vlth partlcular but not exdu$ive regard lo the impact of technology on work and society. To prevent or relieve poverty in the conlgxi of the impact of technoloyy on work aTrJ society. with partlcular but not exclusive regard to thos& in need by reason of youth. 4e, ilkheath, disability, financoal hardship or other disadvantage. To advance any such other charitsble purp08e8 as the trustees In their absolute disrydion detemne by, in particular, but not exdusivaly.. il Research and poliw developmant ill the development and testing ol new and improved way8 of wothng and support for work iii) recommendations on improvin9 all aspec18 of work. and iv) advocacy. In addition, the Board of Trust88s resolved that the acts'vilies of the Chanty should Include.. work lo promote the advanmen1 of human rights, conffllct resolutlcfi or reconciliation or the promotton of rel¥lou8 or racial hamony or equalty and diversity. Notable Devfrlopmonts There ccrtinue to be strong discourses around the new impacts of generatwe Al on sou6ty a8 a whole, and on th6 labour market in particulgr. The govemment, which had recently taken office at Ihe end of the last repoiknng Pgrlctrj, has con11nLd to commit to the idea of Al as a rout8 to gr¥th and woduclivity. and has bad(ed thi5 UP with continugd ¢10sg work wrth US technology finns. However. the h0[d-fc green shc¢ts of better growth for the economy as a wh¢Je have been elusive, and the poIIUcal cllmale across lh8 country has refieded greater instability and tension globally- in part mated by the re- election of Donald Trump as US President in November 2024, him taklng office in January 2025. His policy of threats of heavy tsriffs as a means of pre8sing for an 'America first. agenda In term8 of trade have caused uncertainty and instability, with dlrect consequence for the UK, and lo the context wthln which IFOW ha5 been working, with tri¢kle-d¢wn effects Into a tlghl labour market and a stagnant economic wcture, as well a$ incr8as8d pressuro to e0Y Al at pace. This sense of stagn¥tn and disenfranchisement has been attompanled by 8 charoing political landscape and growng sense of divislon across the country. somethin9 we hove witnessed In eommunlty reseafch in projects through this reporting Peri¢XI. Despite this wder turbulence and ¢hall&ng&s, IFOW has corrtiTrued to enjoy strong conneetlons across our stakeholder groups and appetite for our policy approaches. In particular. wth the culmination of our Plssarld88 Revlew, we not only secured a senior govemment minbster to delfver a keynote address at our dosing conference In January. bul - followro the release of the Final Rewrt - have cworwened a roundtable series DSIT on Al ané the Future of Ktjrk, delivergd workshop$ for D. and worked wth the Al Secunty InstitLrte to implement and integrate our ftameworks for automation into their econonmic modelling. We have a150 been working closely th fimis to operationalise finding trom our research on peopltrcenlred technology adoptknn. and wlth young people trom Iow4ncome backgrounds across dlfferenl part8 of the county in new spin-outs from the Revlew focused on improving access lo better work.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Ihjlth Ihg shape of the new padiament, and new rule5 around APPGS, there were scffle compliGation8 around reconstituting the APPG on the FLrture of tsrk. However, we had a SueSSfiJl AGM in Octobgr 2024, wth new officer8 dected and vAlh support from new partners. and were able to deploy SU88ful programme of evgnts and roundtables. Followlng the completion of the >year Pi5sarides Review, it was 8 g0(Kl opportunlty to refresh our Strategy. wlth the creation of three new pillars lo guide our work, as well as key challenges and targets for our work. The contlnued development of th18 has helped u$ to expand our vision for how we fr&me our work acro$$ aoveTnance, civil society and industy. with a Mder foDJ5 on Ihe creation of 8 )lourishirvJ souety, and work as a site of catalysis for that, as well as a le through whlch ch8nge Can be obseryed. Across thi5 work, we eCne lo have Six groups of key stakeholders that we interact with a¢ros$ our plllars of 'peoplfrcentred technology. 'good trarAb'on$', and 'fiouri8hing places.: Govemment Iwknrtllsing and ¢reating gocJ workl Regulato (steering and intervening lo proteci good wryk) Industy Ideveloplng and modelling gotsj work) Inve0 Ipriontising and requiring good work) Academ Iresearchlng the Impacts of technology on good work) CNAI Soclety lengaglng and informing good workl IFOWS work can be grouped under each of these three themes, and acb'vities are regularly reviowgd to ensure Ih8t they fiJrther the aims and objecbves of the ¢)rganisation. The IFOW executive team meets regularfy lo refiect on, refine and reformulate Ihe challenges that we seek to address. The IFOW Board pays due regard to guidance issued by the Charity commison In decrding what aGtivitie$ the tharty should undertoke, and regularfy review8 IFOW$ work lo ensur@ it refflects the Charity Commission's guidance on public b8ngfil. Achlevements and perforniance RunniThJ from Septomber 2024 to August 2025, the 202412025 Financial Year was a highly slgnifi¢ant for IFOW, wlth the completion of the Nuffidd Foundation-funded Plssandes ReW Into the Future of Welb8ing - thoLrt doubt the most imFJQrt8nt Prect In IFOWS Ilfe to date. ongsid8 9 signtficgnt number of report OLrtputs. this also $8w a 5orie¥ of policy roundtables wrfth major stskeholders in September 2024 - deploying IFOWS SPIA melhoddogy - and the ¢Ing conferenc8 of the Rwew. which took place in The Shard and ac$8 multlple satelllte venues in January 2025. The publicaticn of the final report from the ReeW and as80ciated finding$ then preapitated a ne$ of opportuniues for dlssemlnation, including work ¥th major govemmenl departments and opwrtunrtie8 for IFOW to present at a number of higprOfile events. Other projects also saw IFOW operationalise findings from the Revlew Into work with fimis on responsible Al adoption, with the Al Securlty Insutule with young people from low4ncome ba¢grounds on access to better wo and grgen jobs. and wrth key StakehderE across the creative indu8trfe8. Our work vthh the CIPD saw new ¢)pportunities for us to ernOY expert researchers on Al impacts, Iruding Semeli Hadjiloizou. We 80 gxpanded our capabllttkqs In comms and events. upgrading the Comms Associ* role to fu114ime.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 S1gnffinl developments across our work inGluded.. Continued publication of m8jor research output8 from the Pis88rides ReeW into the Future of Work and Wellbeing, funded by a £1.8m grant from the Nuffield Foundalion, which enjoyed coverage in the national press and all(xved us lo deepen engagemgllt and wtential for impact across our stakeholder group8. The C50sing Conference of the Pi88arides Review, which 88w Sir Patrlc Vallance - Minister of Stale for Science. Innovation and Technology d8liver a keynote address, and major fvJure5 from across academia, films and policy gather in The Shard in London and acro$s $atellfte venues in Comwall, Manch8ster. Edinburgh and Cardiff to diseuss fts)dlngs from the Review. A seriès of expert roundlables wth senior stakeholders in DSITto dIU$$ findings from the Review. An allday workshop Yth senior leaders at to ijlscuss finding8 from Ihe Review, impllcatkns for their work. Thls w88 organised in conjunction with lead economists at DW. Conb'nued parliamentary work, wth SeSsn8 of the All Paity Parliamentary Group on ts Future of Work, of whl¢h IFOW acts as Secretarial and Strategic Research Partner. Fruition of gur major BRAID (Bridging Responsible Al DiMdesl project on the Impacl of Al on the LK CraatlV8 Industries, working with the Turing Inslltute. Queen Mary University Lorbjon. and th& Unlverslty of the AJts, London. This culminated in a series of launch events at SXSW London, and in p8rllamenl. as V•EII as a webinar featuring key figures from acros$ the crealtve sector. Work on three major new funded prolgcls.. Al Adoption In Organisations woioct wth the CIPD. the Motivating Futures prolecl in partnership with the EY Foundatton, and the Flourish proied, funded by Ufi. Alongside these major developments, IFOW Blw enjoyed opportunM&s to share findings frcth our at numerous events hosled by 8 widg rang8 of organisations. These induded the Employment Lawyers Assoaation, Anthropy UK al the Eden Project, the ACAS Conference 2025, the TUC conference In Bnghtm, techUK'8 wlicy conference, Polrtico's Al ond Tech Summlt and the Health and Wellbeing ot Work conference. We were al80 delighted to be invited to attend a dosed roundt8ble %wth Sir Charfie Mayfièld lo feed Into thg Ke Britain Irking review. In accordance wlh IFOWS charitable obiecttves, all searCh reports ar events (where possible) are made publicly available via the IFOW webte. IFOW undertakes Folicy engagement and advocacy work that further its thafitable objects, strtctly adhering lo relevant regulatory guKlance from the Charity Commission on the activities of charitable think lanks, and on campaigning and polltlcal activity. IFOW b¥ independent of any Foltical paty, and the organisalion is careful to ensure that engagement with pditical actors remains balanced awss polibcal parties.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2025 The foll0vng details thg actlvlues of the IFOW over the last financial year, within the 8truL#ure of the three core IFOW pillars.. The flrst cue plllar of c4Jr work through this period coremS the i88ue of new lechnologieg #nd IxJ5iness models being designed in ways that challenge the traditional mechan18ms of good governance and meanlngful countability. One of the key thing$ that we hav8 surfac&J through the Pi88arid85 Review is that thnOlOgY loption processes are not centred ¢)n peopl8, 18ading lo impacts on the conditions, desgn, experience and qualty of work. We have been addressing this challenge through a number of different prolects. The Final ReF4)rt of the Plssarldes Reviw aggregated findings flom across the different Workstm8. Through a new sooal and economic paradigm of Good WorK ri proposed a new model of humana¢entred automation, comprehensive socio-technical approach that urbder5tands technolog1 transfomiation as highly interconnected, arKI Inlerd8pendent vAth P•)dtreca>nomlc change. Part of this work involved in-(kpth rase studles. whlch We published in January 2025. These investigated how workers across dwerse sectors were experiencing technology in their daily ro, and its broader impact that this wo$ having on I[ qualty. WkplaCe relatlon8hlps. and mental health. Based on in-depth focus groups wth 84 workers. the study hlghllghted the dergent nature of technological thango-offerlng greater flexiknlity and efflci¢n¢y but also exacerbating stress, job insecurity. 8nd social isotion. Key findings revealed how •mollonal responses to technology - rarvJing from anxiety lo empowement- We $haping Prodlivity and wellbeing. The report ¢alled for policies and praclices to prioritise worker needs In tsslgning and deploying technology to foster irtlusw8 workplaces. A COn¢t¢d report, published December 2024 vlth fundlng from TN$t for London and led by IFOW Senior Research Fellow, Professor Phoebe Moore, explored the growng issue of '8ffèctiv8 compLrting' _ systems that 8e&k to read workers, emotions, and use the8e reads lo feed algortihmlc management systems that may Impact pay. hours or work conditions. This Is openlng a new frontier in surveillance and prfvacy concems. and has slgnlflcant regulatory impliGations auoss domains, from definitions to IhB need for speafK, updated protecvon In th hard and soft law. Thls led dlredy to a major new proj8Ct in pathrshlp I1h the CIPD belng commissioned. Working dlrectty wrth a number of fim8. thi8 has sought to understand the areas of HR, organisation stratsgy, and ppIe devekpment prath.ce cructal to sucee$sfvl Al implementation al Work. Publishing in 8pfMig 2026, this work alms to tlId 8 deewr understanding of howAI Is or could be used by organisations, ond ils impact on work8rs. IAbrk in this pillar has also ewored the imp8Ct8 on thè craative industriès. thlch remain Such a powerhouse of thg UK economy. Wth funding from BRAID. and working in partnership with the Turing Instttute and Queen Mary Unlversty LorKlon, the CREAATIF project- Crafting ReSponVe A$ses5ments of Al Tech-lmpacted Futures- look the Good Work Algorithmic Impact A8se88menl methodology that IFOW pbjneered and sought to apply this to those working in the creatSve Industries, many of whom are In freelance roles, or roles hlghty exposed to displacement by automation. The project ran a large survey, and - wth 8UPPOrt from key Unn$ - cnV&nd workshops to list8n to th8 exp8ri8nces of workers across film. teleMsion. animabon, translaon, musl perfomanee and writing. By this, it sought to bring the voices of creative workers Snlo the foreground. partieularly wilhln policy guidance for tho UK labour context. Centrfng thelr expedences in this period of technologlcal transfomation hopes 10 sustain a sector able to create hIgalitY creallv6 outputs whlle mlnlmi8ing averse working eondib'on$ and job displacemgnl. We were delighbj to be InvW to present t5 %Ksrk at thg inaugural SXSW event in Shoredltch, wth an expert panel on one of th&ir mainstages, featuring the writer Tracey Chevalier. aulhor of Girl th a Pearl Earring. This work has also been extended by IFOW in a fvrther BRAI[nded projecl condLKted in partnership with the Vinderoo Centre for Technology and Democrary. with IFOW Rasearch Fgllow Dr Clementine Collette explorfng the irnpact of generative Al on the novel. ThroLtgh thls reporting period, Dr Collette convened exwi roundtables to listen lo wrer5 across all genr8S. those in publishing, and those working in policy in DCMS and Dsrr. She 8180 ¢onvened a day-long rxjlicy forum hosted by Jesus College. Cambridg$ in Jung 2025. Publication8 from Ihls work will bè r6p)rted in thg next rgPOrtirvJ period.
INSTITUTE FOR THE FUTURE OF WORK {IFOW) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Supporting all of this on p&)pl¢red technology, the All Paty Parllamentary Group on Ihe Future of Work of which IFOW acts as Secretariat and Str8tegic R8search Partner- convened a session on 5th June 2025 to (tiscuss the impact of Al on the creative industn'es. Thls generated huge inlerest and led to extremdy moving storf9s belng shared by those whose livelihoc¥Js have alr9ady seen significant impacts. This $e$$ion was Chaired by Lord Jim Knight, and also fealured Lord Jim Knight, P8uI W Fleming, General Se¢xetary ol Equlty UK, Professor David Leslle, Dlreclor of Elhtcs and Responsible Innovation Research at The Ajon Turing Institute, NICO Solomon OBE. Sollcilor and independent Gonsullant to creators, fomier Chair of the Creators, Rights Alliance and former Chief Execuuvo of the Society of Authors, Linlon Stephgns, Classical Musician and Broadcaster for BBC Radio and TV. and Dgbgrah Vmlliams OBE, Data Governano Coach and Futurist. The Final Repcft of the Pissarides Review was publl8hed In January 2025 and was very well received. Thls led to numerous engagements with key stakeholders in a Chatham House style. lea¢th'ng to a wlde range of applications. Iuding- In thls raporting period.. Close work wlh Senior pollcymakers and key stakeholders in a series of fve workshop8 curaied and co- hosted by IFOW for and wlth DSIT. Other departments attended regularfy including HMT, OfE, DWP. Th8 ffinal session was attended by Secfetary of State for DSIT and Minssler for Al, listed a$ official engag8m@nts taking place MaYUlY 2025. A s¶te remote event to disseminate finding$ wa$ held for DLUHC which wa5 not working wlh the other departments In this area at the time of the seminars. A whole day bespoke workshop convoned by chief economlsts at DWP lo explore implithion8 of tha Revlews findings for thr work across the Dep8rknent- both internally and extemally. Ongoing work wth thg AISI, Including the adoption of the automatwJn arthgtyp8s as a framework in major study eworing the impads of LLMS on demand for labour, through an RCT whlch examined the impact on timeliness and qualty of people. people augmented by LLM'8, and LLMS only at ONET activities. Ongolng work through our Regulaty Sandtox to develop better Al govem•n¢e mechanisms to SUPFQrt people-cgnlrod approaches. This was also a forum lo dis5gminat8 findirvJ$ to major regulators of work lures including ICO, EHRC, DRF. BSI and others. The DSIT seminars were partlculady slgnfficant. as Ihey spoke to IFOWS Work Infiuenc?ng policy disGussion$. Though these Govered work across other lIarS of IFOWS work. for simpliaty they are aggregated hera". Roundlab 1 (April 20251- expk)ring Al's potential Impact on werk and labour martets. Understanding how best to monitor the impact of Al on the labour market in 01 time to Improve the government'8 tLlOnal awareness ond preparedness. Roundtable 2 {April 2025}- Equipping the workers and employers of the future. What skills vAlI the UK'$ fLrture workforce need to thrive in the Al-era and how VAII th08e charyJ8 as Al'8 a1leS advance? How can we ensvreequitsbleaccess to retralnlng and upskilling opwrtunilies, parts'cularfy for dlsadvanlaged groups? Roundtable 3 (Aprfl 2025)- Champlonlng regicnal apFwathe$ Vvhat are the unique opportunttle8 presented by Al odoption in labour markets In regions acr055 the UK? Vthat role should unlverslties as anchor inslitulions play in cults'vats'ng particular Al-r8lat•J $kn11s specialism5? RoundIae 4 (May 2025}-A safety nel forAI Iran8(tlon8 Vlmlle the overall net impact Al wll have on employment Is still unclear, the polenb'•l for rapid and slzeable labour market transfomation ungmployment creates a significant risk for the UK economy. Roundtable 5 Imay 2025}- Monltorbng Al's Impact on Ihe18bour market Understanding hitjden, changing and future Impacts and likely requirements for pollcy appr¢)gchgs and intervention in 8 h)hlY di$ruplive future.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Plllar 2: Good TfaMltlons Thbs 8eeond pillar of IFOW is ccncemed the crltScal lack of insight into thg nature and pthtial for good work transitions, both within and een jobs. In parkn"cular, this means working to improve the re¢ognitr'on and development of ¢.$ skills and Capa'11te8 and 'matthlng' of workers to good, fvture jckn8. Ono of tho key reports relevant tr) this pillar published as part of the Pissarides Revlew fcKu8ed on thg CaP8blI.&8 that wthers are able to draw on 88 they navigate work tranytion$. For the first time. this report ewored the di5trfbut4on of Pabl1ttIes across the UK workforce, revealing eribeal disparibes and highlighting opportunities to anhano worker resilK9nce and wellbelng In pedods of transition. 11 used survey data from over 5,000 employees to evaluate pabille$ such as slabilty, autonomy. attachment, and achievement. applwng the ICECAP-A framework to wovide a nuanced under8tandlng of worker axp6rienee$. 11 uncovered significant di5partti9$ In capabilty levels, highlighth'ng inequalities across age, ethnicty. and edutstion. Importantly. il a150 fourKI that worl(erE exposed lo atharKed technolog like Al and robotics face di5ruptlons to traditional capsbilty dynamics, emphasising the critical role of Institutlonal framewort(s ané Supportive HR Practices In promoting resilience and 8quty. A key finding highlighted the posibve impaLt of institutional sUppOrty as HR practices, unions, and workpla¢e pcdicie-( employees, capabllllles, offedng a vltal avenue for resilience amid rapid tethnological di8ruption. These gjpport mech8nism8 were ts)n8istently associated wth tthr outcomes. undorfining their Importance for on equitable future of work. n earfier publiGion on the changing Skills demar5 being se8n the UK - reported In th8 last Porfc4J - g8ve rise to a new partnership wth the EY Foundats"on. The Motivating Futures project sought to Urland how to Improve Iran$itk)n$ for young people from low-income backgrounds. Based on a wde review of If(eratur8, and workshops with young paople, il showed how lesson8 In motlvatlon cOd be a vital component In hdplng those trom low-10m8 backgrounds access better wcffk in this age of Al labour market disruption. As evidenced in our Pissarides Review. better technical th'lls and 'AI literacy, alone WAII not be enough for young people from low- income backgrounds to thrfve. Intrinsic motivation and sdf-agency are bttomirrfJ incr90$ingly important for you people to adapt and SLKceed in this fastvolving and technologi8ing lab)ur market. IlIe the findings Sndleated that many young people exhibit strong intrTrnsic or Irrternal motlvation linked lo thelr values and Id8ntity. the research also revealed that. if young pgople are lacking this. it can hold them back from building fulfilling caraars. Yel evidence IndaleS that while young thildren genorally start with similar levels of intrinsic motivatlon, It often erode5 more quKkly over tlme for Children from low-inrne backgrounds. This Is a critlcl insight because this group of young people are more likely to feel excluded from nfjw18aming opportunrties, as those presented by Al. Right at the end of thi3 reporting p¢riod, members of the IFOW team created a pilot InléNonJon- based on insights from this research- to 'shift the dial, on motivation for young peoF4e. This was deployed through August 2025, and the results of this- and 8 comprehenSe revlew of eareers supp)rt structures for young people - wll be Plished in the ngxt reportlng perfod. Two events for our APPG on the Future of Work were pwb'nent to this issue of tratiOn. On 27th March 2025, Lord Jim Knight Chaired 8 panel examining ts evolving landsca of employment rights in the UK as the Employment Rights Bill progressed through Parflament. An expert panel - induding Professor Slmon Deakin {Professor of Law at the UnSversty of Cambridge), Dom Amstrong (Head of Pollcy, Communty Union) representstives from Prospect Union end the law fim Simmons and Simmon$- exored the gaps pollcy intentions and implementation, emerging challenges, and the road ahead. Thi$ looked to surface eleMts of the rte PaFer that wuld be missng from the Bill. whlch MPS or groups could ¢onlinue lo l¢)bby for, and what emarging challenges might requlre protections not yet covered vAthln the legislative framework as workers across the comtry $•• chang9$ in work and ways of working. SecorJty. on Aprll 24th 2025 the gioup met to COnder how- as industn.es evolvo and technology re$hapos jobs- we ensure that vhjrkers and businesses have Ihe skills they need to thrfve. Thi8 covered the viSn fr)r the new eated Skills England, the importance of Ilfe-long learning lo good tran8ition8. and polldes that mlght be needed to futurfrproof the UK'S Workfo?. Lord Jim Knight- APPG CrTrChair- was joined by Lauren E¢ts8rd8- MP for Rochester and Strood, Donna Ford-Clark8 - VP of Vocational Qualifica'ons and Portfolio at Pearson, Simon Parkinson - Chlef Executlve and General Secretary of the Workers Educaknonal Assocoatlon. Dan Hwl - Head of Pollcy aThJ PublicAffairs at BCS. Th8 Chartered Inslitute tor IT and Llthe Crowley- Senic Skn'll8 Pc4icyAdwsor at the CIPD.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Plllar 3: Flourfshlng Pla¢98 Thls third pilar of our work is GOnMed wllh ereatlng Innovation system$ lo create good work aTrJ enable peoFAe and places lo fflouri8h. 1113 based facing the challenge of lrnproving the capabilities of institutions for systematic, 8ustaine(l and induslve growth and inmvation poficy. In July 2025, IFOW published the fourth annual update of the the first hc4i8tic measure of the availability of good work In each local aulhoTity area of England outsid8 London. Work from the Pissarides Review found that technological transformation is having profound and incTeasin9 impacts on good work - impacts that are often masked by headling ¥tati3tics. The Review also found that gcod quality work mediates better outcomes from Al and aLrtomatson. and that Indicators of go¢)d work can serve as measures and proxies for well-funclloning local innovation e¢osy$tem8 and Inclusive growth. Our Good Work Monitor Ihergforg has matured in the context of this review to become a means by which PTogress on key finding$ can be monitored. Our 2025 8dlJon- Incorporating data from 2009 up lo 2024 - built on annual releases lo reveal good work trends over a 15-year period, allowing economic shc¢k$ arKI regional ¥aation lo be situated in a longer- temi contexl. Alongsidg the Disruption Index (released as pgrt of the Pissarides Revlewl, the Good fik Monitor Time Series tracks the environment in which work is created and shaped, distributed and disruplod, and begins lo show the likely outcomes of tethndogical IransformaJon, on current trajeclories. To enhance this Picture and support delfvery of the government's Industrial Strategy, this 2025 edition of the Good )rk Monitor added an analysis using Ihg most current, availab data on PToducivity. Togelhei. ¢r analyses Invlled challenge to seve1 persisting assumpwons.. that employment levels and job quality, faimess and growth are somehow incompallble,. that grovth may result in fewer jobs or fewer gc)d qualrty lobs., and that the acceleration of Al adOptiC and aLrtomation wll not aulomali¢ally lead to good jc)s or other good outcome5. then indic8te(I how these ¢hallerKJes wwld be uilical to effective dellvery of the growih mison and the Industrial Strategy. In March 2025 we putrAls}d a ' Re ' in collaboration the UnNerW of Exeter's Penryn campus, Comwall Council, Com¥Yall Chamber of Commerce and other loeal stakehokjers. This fUSed work from our G(x)d Wcfk Monitor into thè le¢al context of Comwall and the Ie8 of Scilty. It revealed that N%hile the region has made SnifiCent stride5 in implanentiNJ gcod work principles, there are dgeper structural ecorK¥nic challenges to be addressed to ensure Sustained and equltabl& growth and18sting job quality improvgman15. It was rel&as8d to accompany the Disruption Index Spodighl Rgpgrt Ihat wa5 commissioned as part of our Ple5 Review. Using $8 Studies and loc£1 expertise, it ouuined Comw811'8 labour market dynamics and hcvl seasonal Iluctuations arKI market conditions remain obstades to f88ter change. Thi8 work represented a new area of opportunity for IFOW, offerfng focused analysis using our datasets. Thls Is somelhing that we are keen to explo further in the next reporting perfod. Another dimension to our more place-focused work Is In the Flourish projecl, which we have been undertaking with fijnding from Ufl's VocTeth Challenge fund. Grounded In re8earch findings from our Plssarides Revlew- esp8aally th08e cffl netsvork8 of skills - we have been developing ways to help people aGGess training and yrk opportunities In the green sgctor, wllh a key focus orb periphefalised economies.. Comwall and Grimsby. The growth in green jobs pres8Jnls a strategic opportunity for UK regions. bul current skills shortages have been creating bottlenecks for achieving the govemmenl's Industrlal ambitions. The Flourish Fw'ect Seeks lo addr8s5 these ¢hallerrfJes. by focusing on three stskeholder yroup8. Flrstty. there are Job Seekers and Leamers, who face struggl95 to navigate online [8r¢8$ to find, understand, and pursue local enlry-level positi'ons with vocational training. Secondly. Employers and Training Providers, who fae difficulties attrting, engaging and retaining local job seekers th) po$se$s thg right mix of qualific8tions, aptitude, and mtstNation. Flnally. Regional Stakeholders. vthere govemment and policymakers lack clear visibility of programmes in their are88 that alyn with green industry goals, and can struggle to Coordinate effevelY t*ts¥een trainiThJ centres, plders, and emptoyers. Wrth the projèct kicking off at the beginning of 2025. through this reportlng period, the team have been working on the ground in Cornwall and Grim¥by to understand the particular challenges in those areas. We have used Communrty Re8earchers - young people embedded in communrties lo expk)re research wthin tr1r peer groLVS- lo gel a8 close as po88ibK8 to those who we would like to have improveil information and access to jobs in the green Sector. Thls has helFed us to develop a deeper understanding of thg complexities and Ilved reali118s of priority c¢horts in each region rglatfjd to pathways Into green lobs, includiThJ young pple, those who are 'NEEf. potential 'job switchers,, 8nd people who are currenlly 'economically inactiv8'. Our approach has centred empathy, participatory engagement at a mmunty- vel, 8lhnographic methods le.g. al lob centres and job dubs), user 1ftteN, and u8er testing.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Alongside u$er r¢sear¢h, we have aiso undertaken a comprehen&ve prOgraMft of stakeholder engagemt. talklng to bu31nesses, tralning providers and other key stakeholders li each ragion, suth as Job Cethe and local counci18. This IS to enable u# to id8ntty product requirgment8 for bu8ine88es and contribute to our commor¢ial objectives related 10 5UStalnabllHy. The end goal - vthich we are aiming for in thé n8xt r8POrting Feriod - 1$ to develop the Fk)uri8h platform, and towards this the team have undertaken a compRlnsive UX (user eyperfencel process through design-thinking workshops. External prolllo and communlcatlons IFOWcontinues to enjoy a 8trong profile extemally ar¥J l¢xJk51o share Its work strategIlIY across re audience8 of politlC8, academia and business through a variety of ¢hanng15. As already di8CU88ed around our work 7thth DSIT, dosed meetings io share our work vAth policy leads in government departments, govemmenl and shadow t•4ms, regional leaders, c-sulte business leaders. academlc8 and ovil %)ciety repr8senIaVes remaln a core way for u$ lo wmmunicate our mission and bulld supwt for IL Soclal media Impact has contlnued to grow over Ihe repoiting pericd. Our Linkedln fdlowgrs grew by over 1000 durlng Ihls tlme. ropresentlng nearly 28% growth. hIeVed around 45000 oryank Impresglons, correspondlng to the number of Ilmas IFOW $t5 We se8n by Linkedln members, without a sponsorshlp push. This refiects a hSghly engaged audience. as we ¢ontinue seeking to be Ihe govto hub on the fvture of vKrk. Mearmhile, our Bluesky account grew to over 1000 followers and continues lo conne¢l an engaged audlence vtho regularfy repost IFOW ttent. We have continued to hold the line on not using X through this rep¢Jrting period. and feel that more recent events have vindicated this approath, especlalty In eW of our Charlble object lo promote harmony arKI gquallty. Ifislts to the IFOW website Show 43.6k unique visitois, representing a sustained postion followij a year of huge growth in the previous period. Page views refiected strong conlinuty, sitting at 94.8k over Ihe period. Mews per vi$il and vlgtl duratlon were all up. refiecting a strenglhenlng engagement the site. Unsurprfslngty, our top page wa$ the IFOW landing page. and the Final Rep)rt ofth8 Pissarides Revlgw was our most viewe(l fypjrt. Subscn"ption$ to our monthly neyrtfetter have continued to grow. galnlry 160 new subscrlbers, ending the period with a total of 2738 subscrfbers, and 'open' rates have been pleasiroly suslalned wrth thi5 gro arKI stsnd at around 40% - substantially rn0 than the 'toptier' score of 30% expect&J natlonally and mean for Mailchimp of just over 20%. The foal we have been using continues to draw in audlences 1ooknng for a dig88t of what is happenlng In the Future of Work spaee, and covers an introductory overview piece, a deeper dive into some current re8earch and then a list of interesting reads and forthcoming events. Our Unke(Iln newsletter has sèen impressN• growth, with, on average, 70 new subberS per month over the second half of the reporting period, ending wlh a total of 2074 subscribers. feel that this has represented a shift towards Linkedln as more people have migrated away from platforms such as X. and our dgcision to engage in thi8- and host a ver3lon of our nth¥etter there, as well as on Mailthimp- was warranted. We al80 enjoyed further press and media ¢ov&rag8 arKI aGtivitles across Ihg rgporting peric¥J. particularfy In Fxlnt and online media. In JanLTrary 2025, the Pissarides Review received strong attention in print and online medio, indudlng features in the Guardian and Business Matters on the potential for new technologies to widen existing inequalities in the UK, a8 well as 8 lon9er-form feature in the Financial Times'working It, newelter. Print and online verage of IFOWS partnership with the CIPD on the Innovate UK BridgeAI-fund8d project has also been notably strong, as covared in, among other publications, Personnel Today.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 IFOW were also invited lo contributs to print and online medi8, especially on issue8 8round potenlial labour market disruption lo enlry-level jobs and opportunrties. IFOW contributed multiple articles to different ouuets on these topics. including a piece on skills, capabilities, and graduates to Lumin8le magaine, and a grnilar wticle on young people and the changing skills landscape for the Edge Foundation's Skills Bulletin. Interest in the entry- level labour market also extended to an IFOW interview on graduate recrultmenl for the CIPO Work Magazine that goes out to all expert HR professionals, and a slalement in a Financbal nmes article tilled 'ls Al killing graduate jobs?, This FT article generated signlfic8nl further speculative interest frcn the Telegraph on the origins, ujrrenl work. and upcoming IFOW publications, which we have looked lo build on in subsequent months. IFOW diredors have been featured across different broadcast media channels, typically invited eommenl on relevant national poliey developments, as well as to discuss IFOW work directly. On BBC channels like BBC 5 Live, BBC London. BBC Radio Ulster, and BBC Radio London, IFOW has ¢omment8d on developments like the Governmenfs TechFirsl schools programma and Al Action Plan, how Al is changing graduate jobs, as well as broader workplace transitions, principles of 'GoDd Work, and other findings ol the Pissarides Review on technology adoption 8nd innovalicfi. Among other academic contributicfjs. partiwlarly notable was a mention in Capabilities and Human Development Joumal of IFOWS Final Report of the Pissarides Review as a key contribution lo the study of work-related capabilities and its intersection with technological innovation. IFOW has also offered supportive quotes for other relevant reports, such as for the Lbyd's Register Foundation's Global Emdence Safety Centre. IFOW continues lo recewe a large number of speaker requests from a wide range of organisations. Ov8r this rgporting period, this has included invilakn.ons lo contribute to the FT Women in Business Summit, HR Forum, PCS Conference, Politico and Al Tech Summit, and Anlhropy UK, as well as events by TechUK, University Alliance, York Festival of Ideas. LSE, UCL, SXSW, ACAS. Employment LawyerS'AS8lakn0n, New St8te$man. and DSIT and DWP. Flnanclal revlaw Al the end of the repctlng perfod on 31st August 202S. IFOW remains In a stable finantial positicn, rellecting prudent management of funds and a commitment to doliv8ring its charitabbg objectives aleny. Total income for the year amounted to £993,111 12024.. £977,733>. an InCaSe of £15.378 compared lo the prevbous year. Income was primarity derived from grant8 and donations. T¢)tal expendfilure for the Y was £1.030,46912024= £808.0671, an increase of £222.402 compared to the previous year. Al yeaf-end, the charity held total reswvgs of £382,579. 01 which £1,464 is reslrlcted and £381,115 are unrestricted reserves, providing flexibility for operats.onal and strategic needs. The charity's total assets st(K)d at £469,499 indudlng cash, investments, and tanglble fixed assgts. knablliligs, Includlng short- and long-temi obligation5, tolalled £104,462 resuWng in a net asset position of £382,579. IFOW has continued workirvJ towards daveloping a diverse and sustalnable fundlng base. A broad donor po remains an imperative to ensure IFOW can fijnd the whole slralegy. The organisalion Is 8180 grateful for the support of grant funding from Tfust for London. Joseph Rownlree Charrtable Trust. Nuffield, CIPD, Friends provident, git, IRC4HR and Alex Ferry. Further delall on the purpose of these restricted funds be found in nolg 16 to the accounts. All restn'cle(I funding 1$ used solety for Ils Intended purpose. IFOW research progr8mme8 are independent from all uniestricted fvnding the OTganisation recelves and chosen solely on their relevance to IFOWS missitjn. The truste85 are satisfied with the financial health of tho charty at the end of the repoiknng period. Slrateglc planning Continues lo 8nsure sustainability, and efforts to diverstfy Income streams are ongoing. Tr ¢harTty mains well-positboned lo meet Its objectives and respond lo emerglng challenges in the Goming yèar. The trustees confirm that they have consldered the charity's fina101 po&b"on, reserves, and risks and believe the charity MainS a going eoncern for the foreseeable future.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2025 Reserve• Pollcy Taking into con¥idgratKJn the guidance18sued by the Charity Commi88ion, the poliw of the IFOWtrustee8 Is to hold sufficient funds in r8sèrvÈ lo ¢over the morths of IFOWY forecasted total oparating •xpenditure. or 25°A of total annual planngd operallng expenthture. Thls chosen levgl of reserves will allow IFOW to meet its liabiliti9s in the event of a redudbjn in income. whlst onsuring that the majortty of funds are dliected towards advan9 the Charitable purposes of the organisation. Thi$ reseNe$ target will remain undar T8MiOW by Ihg Iruslggs throughout the year and wlll be reviewod fjnnualty. IFOW dosed the 202425 financkgl year hdding reserves of £363k. of whlch £2k 18 re$lTiCted, ths remaining £381 k is unre51ricted. induding £17.542 of ffixed assets. The Trustees consider these reserve Iwels to be adequate to fijnd the activities of the charlty for th• fore$eeable ture. Prnelpal risk* and uncert4intie8 and Summary of plan8 and stratsgl•s for man•glng the rlsks IFOW is constantly striwng to attain a s81 of dl¥eTre and long-temi incoTh stream5. Thg finance sUb-mMittee (rnade up of represenlatNes from both tho Board and stsff leaml meets once every two m(mlhs lo discu55 this desire, by closely in$pe¢tiNd the funding pipeline. aays belng aware of the three months serveS policy. IFOW maintains a risk ragi$t¢r whid) 1$ vieWed annually al Board level. A$ part ¢)f rfsk Managent, this dowm9nts the maln rf8ks arn1 planned mrtigalionts acmss seNEral potential scengri0$. in¢ludlng financial sustainabilty. govemnce, key-person risk, and IT $8curliy. Plan8 for futurè perSods IFOW has incorporated the Bubsidiary. IFOW projects Itd, on 23fd JU 2025. to permit wider impact and reath againyt our strategic obi8Ctiv8s. whi18 containing ri$ structuro. go¥•rn•n¢o and manag•m•nt IFOW 18 a charitable company limited by guarantee, Incorporated on 19 Mar¢h 2018 and registered as a charlty on 15 November 2018. IFOW was established under a memorandum of associ8tKtn which established the objects and powers ol the charitable company and Is govemed undor it8 artic8 ol association. IFOWS name changed from The FLrture of Vvork on 30 May 2018. when IFOWwas granted institute status. AJI trustees glve Ihelr1Sm& voluntarfly and receive no benefits ffom the tharty. The Trustee8. who are also the dlrectors forlhe PLwpose of ¢ompany law, and who 8eNed durirwJ th• yaar and up to the date of signature olthe ffinanGI $ts1omgntS Wgre.. r C Pi888ride8 {Pu8 c Chair) DrA Im8fidon MBE M E Dalton S Khareghani G J NLrttall OBE D Barone Soares Dr S Black Nwcllmer C8E FREng (Acllng Chalr) Prof G Neff (Resigned 1 February 2025) (Resigned 28 February 2026) 10-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGusf 2025 Appolntmènl R•moval and Me•tlng of ThMt••s Candidates for trustee position$ •r• a5S8588d by incufflbent tru51ees and meet infomally with senior management. Recommended ¢andldales are ¢onsidered by all incumbent tru81ees and are appolnted by Unanimous approval of al trustees, with no maximum limit on the numb9r of trustees thal can b8 appointed. Correspondingly, a trus18e can be removed by a resolution SSed unanimously by the othèr tru$lee8. All tw8lees are members 8nd Oirectors of Ihe charity for Companies Hou9& purposes. IFOWS affairs are normally conducted und8r the supefwsion and leadership of its Co-Dire¢ors, Anna Thomas and Dr Abigail Gilbert. Trustee meellngs are held quartedy, and staff members are in frèquent ¢ommuntC8tion th the truslges througholrt the year and maintain a cbse workthg relSon$hip tog8th8r. Key Management P•rnonno1 The management of IFOW is lod by Co&Director8 Anna Thom•s and Or Abigail Gdbert. The Co-Dire¢tor¥ are responsible for d8y-ltrday managament. R8sponsibililies are delegated by thg Co-Directors to the managemtnt team. Arrnngements for 8•ttlng pay and rgmun•rntlon of key manag•m•nt rnonl and any nChmarks. parnmgtgrs or crlterla usod The salaries of all IFOW staff are benthmarkg11 agn$t oqulvalgnl research organis¥lions wthln the third $fj¢tor. RUl1Ment is carefulty managed to lake bpnGhmarking into consideration, as well as the overall budget to hand. An annu81 rèviw process is in place, which links perfofmance and development to Bny changes in staff remuneratlon. Finaly, IFOW has an Intgmal banding system to ensure thal ¥ll people at the same 18vel aro paid fai withwi eath band. Trust99 Inductlon and Training As and when new Trustees ar& recruited, a ful induction into th6 ¢harlly 18 plannod. Thls Includes, but is not limited to, providing key po]i(4es and pro¢odurg$ an(1 training on these as appropriate. Funds hold As eu8todSan tru8te• Neither IFOW nor any of 118 tru8tees ara ¥ting as custodian Iruslee& The Trustees. report was approved by the Board of Trustees. DrAlm Tru$tèt don MBE 14 May 2026 11
INSTITUTE FOR THE FUTURE OF WORK (IFOW) INDEPENDENT EXAMINER'S REPORT TOTHE TRUSTEES OF INSTITUTE FOR THE FUTURE OF WORK I rwrt lo the Trustsè8 on my examlnation of the flnanclal statements of Insbtule for the Future of Work (the charity) for the year ended 31 August 2025. R•8p•nslbllItl and bas of roport As 1he Trustees of the charity (and also its directors for the purposes of company lawl, you are responsitle for the preparation of the finanaal stal&ments In a¢cordanc& wrfh the requirements of the Companies AGI 20C6. Having satlsffitd myseIhat the financia statementB of the charNy ara Thjt requlrad to be audited under Part 16 of the Companies Act 20 and are eligible for independent 9xaminalion, I report in respect of my examination of the ¢harity's financial statements carried out under sedion 145 of the Ch8rilies Act 2011. In carrying out my examination I have folowed the Directksns gN&n by the Charity Commi55ion urKler section 14515}tb) of the cho1itwArt 2011. Indpnd•nt examinerf$ itatsment Since the charity'$ gro$$ incoma &X¢¥¥d £250,000, the independent examiner must be a rnember of a body lislod In secon 145 of the Ch8rllies Ad 2011. 1 confirm that l am qua1ffjd Its undertake tho examinalKin be¢8uw l am 8 member of the In*itutt of Chartered Accountants In England and Wal&s. whth is one of the listed bodi¥s. I have complatsd my examlnatlon. I confirn Ihat no matters hove me to my attention in connection wlth tho examinotion ging m8 CBUSg to that in any matèri81 rèspect..
ccounling records were not kept in resped of the tharity as requi by s•¢tbn 386 of thè Compani•s
Ad 2¢X6. the financial ststements do not accord wlh those re(xJrds.' or the financlal slalements do not cOMY wtth the accounllng requirements of seclion 396 oflha Companles Act 2(Th other than any rnqulrem8nl that the finanaal Slat6mènts gfv8 * Irua and fail view. vthich 18 not a matter nSidered ¥8 part of an independent examination.. or IFW financial $tsl&ments have n¢1 been prepared in accordance with the methods and prIncIaS of the Statement of Recommended Practice for accounting and reporting by charities apKAi¢able lo charities preparing their finanal 3taternenls in accordance with the Finandal Reporting Stsndard 8ppli¢able in the UK and Republic of Ireland {FRS 102}. I have no concerns and havo eom• auos$ no oth¥r Matte in COnnectn wilh the eXaMinatn to which attention should be drawn In this rewrt in oriler to enable a propel understandlng of the financAal statgments to be reo¢hed. Lisa Johnyton FCA for and on behalf of Rogers Sp8n¢¢r Chart8rod Accountants Newslead House Pelh8m Road Nottingham NG5 1AP Dat&J. ly.. MhY...2.É6 12-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST2025 Unr96tr1cted R•$trlet•d fund$ funds 2025 2026 Total Unmtrictsd RHtrf¢tod fvnd$ funds 2024 2024 Total 2026 2024 Notss Income from. Donab"ons and ltyacios 51.099 942,012 993,111 125,699 852,034 971,733 Ex ndltur• Raising funds 3.050 3,050 14,3SO 14,350 Charltablg ac¢iwti85 87,008 940,411 1,027,419 40.727 752,990 793,717 Total •xp•ndliur• 90.058 940.411 1.030.469 55,077 752.990 808.(7 N•t loutgolngvlncom•ng ouv¢•s b•foro trafi8fgrs (38,959) 1.601 {37.3S81 70,622 169,686 Gross transler8 between funds 137 (1371 199.044) Not1oxp•ndhur•Vln¢om• for the yearl Net mov•m•nt In funds 136,8221 137,358) 169,866 169,666 Fund balances al 1 S•pt•mb8r 2024 419.937 419.937 250.271 250,271 Fund balanc•• at 31 Augugt 2025 381.115 382.579 419.937 419.937 Th• statement of finanrAal activil*s indudas all gains and10s8es recognised in the year. The slatemenl of flnandal artivrties includes all gains and lossas recognised in the year. All in¢ome and expenditure derive from continulng 8¢Xivities. The statement of financial aclivities also eomplles with the requirements for an Income and expgndilure aOUnt UrKler1 Companles Act 2006. 13-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) BALANCE SHEET AS AT31 AUGUST2025 2026 2024 Noi•• Fix•d amets Intangib assets Tangible as1$ Inve$lmgnl$ 10 11 12 9.077 8.465 6,701 17,543 6,701 Curmnt a880ts Debtors Cash at bank and in hand 13 287.199 182.3 148,670 439.179 469,499 587.849 Crndltor•: falling wllhln one year 14 1104.483> {174.813) Not curr•nt agvts 365.036 413,236 Totsl #ttl le88 curr¢nt Ilabllltles 382,S79 419.937 Th• fund8 of th• charlty Restrided income fiJnd$ Unrestricted funds 381,115 419,937 382,S79 419,937 The company is 8nbd8d to the exemption from the audit requirement contained in sectlon 477 of the Companie$ Act 2CI)6. for the year ended 31 Augu812025. Th• dirertors aeknowtèdge their responsibilities for complying Mth the requlrements of the Companies Acl 2006 wlth rospèct to accounting recordB and the pr•paration of financial stslèments. The members have not required the company to oblaln an audtt of tts financial slalements for the year in quastn in accordanca with section 476. These financial staternents have b88n PT8pargd in ac¢ordan( wllh the provisions applKable to companies subje to the small companies regime. 14 May 2026 The financial statemants r approved by the Truste85 1)n ......................... DrAlm BE Company registration number 11263261 (England and Walas -14-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025 2025 2024 Nole• Cash flo from op•rating o¢tivltl•s Cash labsort)ed byllgeneratsd from operations {243,387) 277,617 Inv•sllThg actlvltl•s Purchase of intangible assols Purchase of langlble fixed a568ts (9.2991 (4,1931 (3,1981 Net ¢asfv used In I$tIng a¢tlvl¢l•s (13.492) (3,1981 N•t Id•crnaMllincf•a•e in c••h #nd e•sh •qulv•l•nts {256.8791 274,419 Cash and cash ¢quiv8lents at beginnlng of year 439,179 164.760 Cash and cash •quiv•lents at•nd of y••r 182.300 439,179 15-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 A¢¢ounting polklvJ Charlty Inforniatlon In$litute for the Future of W)rk is a private c)mpany limited by guararrte• incorpored in England and Wales. Thè registered offic8 is Fi8ldfi8her, Riverbank House, 2 Swan Lane. Londcn. EC4R 3Th. 1.1 Basls of preparatlon The financi81 stat8ments have prepared In accordance wrth the tharity'$ governing doujment, the Companie$ Act 2006 and 'Accounting and Reporting by Charitie8'. Statement of Remmended Practice applicable lo charities preparing their accounts in accordance th the Finala1 Reporting Standard applicabla in the UK and Rgpublic of Ireland IFRS 1021 {effective 1 January 20191". The chartty Is a PU5¢ Beneffl Entty as defined by FRS 102. The finaal statements are prepared In 8terllng. whlch 18 the fundon81 ¢UTrerw of th8 charity. Nknnelary amoun15 in those ffinandal statements are rounded lo Ihe nearest £. The financial statements have been prepared under the hiskncal cost conventlcfi. The prin¢ipal xcounting polieS adopted 8re sel out below. 1.2 Golng concem At the time of apwoving ihe flnancial Statements, the Tru5tee8 have a reasonable expectatlon that the eharity has adgquate re80urces to contlnue in operational exi8tenc8 fc* the f¢Seeae future. Thus the Tnstees continue to adopt the goin9 wn¢ern basi$ of aG¢otIng in prfjparing the finandal statements. 1.3 Charltgble funds Unrestricted funds are available for usg at the dlscretlon of the Truslees In fijrtherance of their charftable oblttlves. Restrfcted fijnds are subject to SFecffic condttlons by donors or grantors as lo h)w they may be used. T wrposes and uses of the restricted funds are set out in the notes to the financial slalements. 1A Incom Income is recognised when the tharity is legally entitled to il after any perforniart ndItionS have been met, the amounts can bg measured rellably, arKI It Is probgble that Inme wlll be received. Ca$h donations are recognised on receipt. Olher donations are reo)gnised once the charity has been notified of the donation, unless performancg conditn5 require deferral of the amount. In¢¢mo lax rocoverable In relation to donati¢)n$ received under GiftAid or deeds of covenant is recognised at the tlme of the donation. Legacies are recognised on receipt or otherwse rf th6 charty has been notlffied of an impending distrlbutknn, the amount is known, and receipt is expeeted. If the amount is not known. the legacy is treated as a conlingent asset. 16.
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Accountlng poll¢l•s Icontlnued) 1.5 Expenditurn Liabilities are recogni58d as soon as there 18 a legal or constructive obligaticffi commiibng the tharity to th& expenditure. All expendrture is accounted for on a cash basi$ and h8$ been cl8ssMed under heading8 that aggregate all thg costs related to the category. Cost of raisiThJ fvnds relate to th06e SpefiC costs Incurred in organisin9 and staging fundTaising events and S8eklng voluntary contributions together with attributable support costs. Chatitsble expendlture comprises those costs 1ftrred by the charlty In tt)8 delivery of it¥ tiVitieS and serv15 for ils beneficlaries. It includes both costs that can be allocated direcuy to suth ac*vilies arKI Iho$g costs of an Indired nalure ngcessary lo suppeyi them. Support costs include central functlons and have been allocated to activty wsl ¢alegories on a tes18 consistent the use of re¥ources, for example. 811ocatlng property costs by floor areas. or per capits. staff costs by the time Spent ond other costs by Ihelr usage. Govemance cost5 comprisa those costs assoliated with meeting the eonstoiutlonal and strategic requlrements of the charity and the audlt fees and costs linke(I lo strategic management of the charity. 1.6 Intanglble fixed 08sets other than goodwlll Intangible assets wuired separately from a bUnesS are recognised al cost and are $ub8equently mèasured al cost less accumLtlated amortisation and aeeumulaled Impalm)ent Ios8es. Intangible assets acquired on bu$ine$$ Combinations are recognised 88parately from go¢thAII at the acquisition date where rt is probable that the expected future economic benefits that are attritsutab lo the asset wll flow to the entty and the fair value of the asset can be measured reliably.. the Inlanglble asset arfses from contractual or other legal Nghts., and the intangible asset15 separable from the enlly. Amortisalion 1$ recognlsed so as lo wrlie ¢)ff the cost or valuation of assets less their residual values ov8r their useful lives on the following bases.. Patents & Ilcences 10 Year3 strah1 line basis 1.7 Tanglble flxed assets Tangible fixad assets are initi81ty measured at cost and subsequently meawred 81 Cost or valuation, nel of depreciatlon and any impaimient losse8. Depr8cialiori is recognised so as lo write off thg Gost or valuation of assets less their resdual values over their useful lives on the fdlowing bases.. Fixtures and frtts'ng¥ Comptjters 30 % Reducing Balance 30 % Reducing Balance The gain or loss arising on the disposal of an a58et is detennined as the rjrfference betsveen the salg proc88ds and the carrying value of the asset, and Is recognised in the slalemenl of finanual activities. 1.8 Flx•d asset Investments Fixed asset investmerts are initially measured at transaction prfce axduding tran8xt1 costs, and are subsequenuy measured al fair value at each reporting dale. Changos in fair value are recognised in nel incom&llexpenditurel for the y8ar. Tran88ction costs are expensed as ineurred. A subdiary Is an entity controlled by the charity. Control is the power to govem the financial and orwating policies of the entlty 80 as lo obtain benefits from ils aGtivitie$. 17-
INSTITUTE FOR THE FUTURE OF WORK {IFOW) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 AG¢ountlng pollcl•s IContlnu•dl 1.9 1mpa1rnt of flxed a$s•ts Al each reportlng end dat8, the tharity rewews the corying amounts of Its tanglble and int#ngible 838ets to determine whether ther& 18 any indication that those assets have SLrffered an impaimènl Ios6. If any su indication exists, the recoverable amount of the assgt is estimated in crder to detemlinp the extent of the impaiThent loss lif any). 1.10 Taxatlon As a registe charlty, Ihè company is exempt from income and o)rporation tax lo thg extent that its incom$ and galns are applied lo Charitable purwJ8e only. 1.11 Employe• b•n•lSts The cost ol unused holiday entitlem8nt 18 recognised in the period In Ihe employee's 8erviees 8re re¢eived. Temilnatlon beneffts are re¢ognised immediately as an expense when the charNy 1$ *Jwnonslrably committed to terminate the employment of an employee or to tyovide ternin81ion beneffts. Crltlcal a¢¢ountlng estlmatss and Judgements In the applicati of the thartys accounting policies, the Tw5te8s arg requlred to make judgemwrts, estimates and 888umptions about the carrying amount of assets arKI Ilabllilies that are not readity 4iparent from other sources. The estlmate8 and 8SSOCiated assumption$ a Sed on hi8torlcal experien and other factors that are consdered to be relevant Actual resum¥ may differ from these esllmates. The estimates and undertying a$8umptions are revfiewed on an ongolng basis. Rewsion5 to accountirvJ estimates are recognised in the parlod In lch the estimate is revised where the rslon affe¢ts tY that perh, or in the period of the rewsion and future period5 where the revision affects both current and fure period5. 18-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Donations and legacl•s UnMtrlct•d Restrlcted lund# funds 2025 2026 Total Unrestricted Restdcted funds TrJs 2024 2024 Total 2025 2024 Donations and glfts Grants 1.099 50,000 48,165 893,847 49,264 943,847 88,199 37,500 88,199 852,034 889.534 51.099 942,012 993,111 125,699 852.034 977,733 Donatlofis and glfts Patrons, Circle Members Braid Speaker fae for conference Br8athe donation$ APPG Other 54.000 54,000 9,832 9,832 750 349 38,333 750 349 38.333 34.199 34,199 1,099 48.165 49.264 88,199 88,199 Grants r¢coSvable for corg actlvltles Inthallo Foundation Trust tor London AISI Digit Brald Joseph Rovmlree Nuffield Nuffield Contqnuatoon Friends Provident IRC4HRIAFF UFI Vocteth EY Foundation Evaluation AGcelerator Fund Worfd Openn88s rert CIPD 50,000 50,000 37,500 195.350 21,484 30,000 30,000 57,500 37,500 195,350 21,464 57,500 47,614 47,614 87,553 87,553 57.320 57,320 541,581 541,581 28,660 49.593 78,432 30,233 26.667 101.329 77,314 28,660 49,593 78,432 30.233 26.667 101,329 77.314 60,486 60,466 7.500 7,500 40,803 30,000 176,702 40,603 30,000 176,702 50,000 893,847 943,847 37.500 852,034 889,534 19-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Ralslng funds Unrestrlcted unstrICted funds fund8 2025 2024 Fundrai in Fundraislng consullan¢y 3,050 14,350 3.050 14,350 Charltable actlvltles 2026 2024 Staff costs Depreciation and Impalmient R8nt Meeting room hiro Research costs StatKJnery & prinling Travel & Subsistence Sub8crlption8 Bank charges General expenses Other legal & professional Consultancy Insurance Content pr¢)ductlon Recruitment 555,605 2,650 24,474 437.158 1,604 12,807 1.200 7,614 6,287 1.426 8.172 314 5,026 7,718 81,055 1,934 219,265 21,034 S,855 4.771 8,709 579 15.029 18,291 318.556 2.896 39,147 li 719 1,579 1,024,179 791,137 Share of govornance costs (see note 8) 3,240 2.580 1.027,419 793.717 Anatysls by fund Unrestrlcted ftJnd8 Rftstrithd funds 87.008 940,411 40,727 752.990 1.027,419 793,717 -20-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Governance costs 202S 2024 Accountancy F8e5 3,240 2,580 3,240 2.580 Governance costs in¢lud&s payments to the Independent examiners of £3.24012024.' £2,580) for indgpendent examination fe8s. Tru$tses None of the Truste8$ lor any persons connected wth th8ml received any remuneration or benetlts fnm the chority during the ye8r. Employ•es Tho average monthly numb8r of employ8es durfng the year bYdS'. 2025 Numb•r 2024 Number 11 Employment costs 2025 2024 e8 and salaries Swal Security costs other panon costs 495,333 48,8 11.304 390,155 37.974 9.027 555,605 437,156 R•muneratlon and kgy management pèrnonnel Th8 r8muneraUon ol key management personnel Is as follo. Aggregate compensation 129,7 126.149 There were no employoes wh058 annual remuneration was £60.000 or more. Taxatlon The tharty is exempt from tax8tK*n on its activities bec9usÈ all Its Income Is applled for tharitable purpose6. -21
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS ICOMTINUED) FOR THE YEAR ENDED 31 AUGUST2025 10 InLingibl• flxed assots Pthnts & Cost At 1 September 2024 Additions- separalety acqulred 9,299 At 31 August 2025 9,299 Amortlsatlon and Impalrnient At 1 September 2024 Amortisat¢on charged for the year 222 At 31 August 2025 222 Carylng amount At 31 August 2025 9,077 At 31 August 2024 11 Tanglbh flx•d assets Flxtur•* arml C<>mputers ffttln Totsl Cost At 1 September 2024 Addlllons 1,524 15.077 4.193 16.801 4.193 At 31 August 2025 1.524 19,270 20.794 Dopreclatlon and Impalmient At 1 September 2024 Depreciation charggd in the year 1,323 60 8,580 9,903 2,428 At 31 Augu81202S 1,383 10,946 12,329 Carrylng •mount At 31 August 2025 141 8,324 8.465 At 31 August 2024 202 6,499 6.701 -22-
INSTITUTE FOR THE FUTURE OF WORK {IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 12 Fixod a¢t Investsn•nts othor Investments Cost or valuatlon At 1 September 2024 Addlllons At 31 August 2025 Carrylng amount Al 31 August 2025 At 31 August 2024 2025 2024 Other inveslmenls comwtse.. Note5 Inv88trnents in 8ubsidiarie6 19 13 Debtors 2026 2024 Amount¥ falling due wlthln one yMr: Trade dèbti)rs Prepayments and accru1 income 116,790 170.409 87,671 60.999 287,199 148,870 14 Crodltors: amounts fvlllng du• wlthln one yoar 2025 2024 Oiher taxation and soual 3ecJJnty Trade ¢redit¢)rs OtheT creditors Accruals and defeffed income 27,340 7.247 8,808 63,8 13,507 63,796 3,206 94.104 104.463 174,613 16 Deferred In¢ome 2026 2024 Other d8ferr8d income 35.129 52,786 Deferred inty)me is induded in the financlal statements as fdlows: -23-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 16 Defevred Income Iconllnued) 2025 2024 Balanca a$ at 1 April Amwnt deferred in year Amount leaSed in year 52,786 35.129 (52,786) 11.887 52,786 111,667) Balance as at 31 March 35,129 52.788 16 Restrlcted fvnd¥ Th8 restrithd funds of th6 charity compri09 the unexpended balances of donatlon8 and grants held on trust 8ubje¢t to q)e¢ifiG onditions by donors as to how they may be used. Movement In fund8 Movoment In funds 8alanc• at Incomlrq Re*our• Balancg at Incomlftg R•soU•S 1 Soptwnbor rgJour¢os •Xpen( I S•pt•mb•r rB8our •xp•nd•d 2023 2024 Trnrtf•r¥ 8rtlo at 31 Augwt 2025 Trust for LoTrJon V¥brld Openne88 r8port Joseph Rowntree Charitable Trust Numeld CIPD Braid Frfend$ Provident Digit Evalualion Accelerator Fund Nuffièld Continuat IRC4HRIAFF UFI vTeth EY Foundation APPG AISI 57,500 IS7,500) 37.500 (37.5001 30,000 (30,000) 57.320 541.581 {57,320} {S41,581) 28.660 49,593 178.703 9,832 30,233 21,464 (28,680) (49.456) 1176,703) {9,832} (30.233) (20,000) (1371 87,553 60,466 47,614 {87,553} {60,468} {47,614) 1,464 40.603 (40.603) 78,432 26.867 101,328 77,314 38.333 195,350 (78,432} (26,687) 1101,328) (77,314) (38,333} 1195.350) 852.034 {852,034) 942,012 {940,411) 11371 1,464
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 16 R•strict•d funds Icontlnuodl Trust for London This fundlng 5UPPOrts the advancement and implementab'on of IFOW8 soal wjlicy innovatiw framework through the execution of tsrgelèd policy initkqtives and pllot PTogrammes. It also enables the dlssemination of insights $0lutions to promote tsirer and mgre equitsble work conth"lions thin London's retail and transport sedors. Worfd Oponnoss R•port A chaplerfor an open access book on data and trada. j•ph Rowntree Charltsble Tt Funding is being sought to devglop yogr8ssive legal and corporate responslbllltbes aimed at ensuring that Artrficial Intelligence. Machine Learning, and algorithmlc systems deployed in the Wofkplace support and empower workers, ralher than dimini$h their roles or value in the fvture of work. Nufflgld This grant supports a CoMphen$1Ve investigab'on into the effec15 of new technologies on work and wellbèing acro88 8y8temlc. organisattonal. and IndIdUal dimensions. conlrilxrting to the broader understanding of their soGio-ewnomiG impacts. CIPD A¢tion research into the'8R's' as a method to focus on leè design through Al adoptlon. Brald Thi8 inf(iative fc¢use8 on examining effeGtive responses lo the implication¥ of generative Al on the creative industriO$, Wth the alm of shaping Informed, futurfrTeaty strategies and policios. Frlend$ Provid•nt This projecl explores Ihe evolving relallonshlp beknn emerging technologies and work by identifying automation archetypes and devdoping robust frameworks for conductSng algorithmic impact assessments alignod with the principles of g¢xd work. Dlglt In collaboration wth the UK academic Sector. this proje¢t aims lo fostsr a well-lnformed and evidenGfrbased FL)lty dialc4ue on the future of work. grounded In Interdisaplinary researth and real-world data. TFL Contlnuatkn Grant Core support to ensure the rights and interests of economically marginaliwj wthers are representwj in national policy conversations. Nuffield Contlnuatlon Qrant Work to deliver the additic81 working pap¥s uslng the findings and work conducl8d in the orlgln81 review. IRC4HIUAFF Research on the distribution of automation impacts and rolg of perceNed rights as a moderator. Ull VocT¢¢h A PartiPat0ry action re68arch project to advan uptake of green jobs In depdved communities through a novel matching tool. EY Found•tlon A study into intrinslc moti¥ation in marginaliaed young people. APPG Work to supwt tt)eAII Party Parfiarrntary Group on the Future of tsrk. AISI Delivery of research cn the impact of LLM'S on the UK Labour morket. Evaluatlon Accolorator Fund An gvaluation ofAI adoption in the public sector. -25-
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 17 Unrgslrlthd fund8 unrestricted funds of the charity comprise the unexpgndgd balances of donatk)ns and grants whith are not subj'ect lo conditions by donors and grantor$ as to how they may be used. Thèse indude des6gnated funds which have ken set ade tyjt of unrestricted furmls by Ihe trustees for spe¢ific purposes. At1 Incomlng R•source8 3gpt•mber rnsources exp•nded 1024 TransfoV8 At 31 Augu8t 202S General funds 419,937 51,099 (90.058) 137 381.115 Pr•vlous year. At1 S•pt•mb•r 2023 Inry>mlng Rgsourcgs rnsourcès •xpended Transfern At 31 August 2024 250,271 125.899 42.525 (97,602} 418,495 1,442 General funds 99.044 250,271 125,699 (55,077) 99,044 419,937 18 AnalyBiB of net assots betwwn funds Unrostrfcted fund6 2026 Rntrl¢tod funds 2025 Total 2025 At 31 August 2026: IrrtangitAe fixed assets Tangible assets Investments Curmt as8etsl{liabilities) ,077 8.465 9,077 8.465 363.572 365,036 381,115 382,579 Unrestrlct•d funds 2024 Restrlcted fund8 2024 Total 2024 At 31 August 2024: Tangible assets Current assetsllliabiliti8s) 6.701 413,236 6,701 413,236 419.937 419,937
INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 19 Subsldlarlès These ffinanaal statements are separate Gharity finan¢lal statements for Institute for the Future of Work. Details of the charity's subsidianes at 31 August 2025 are 8$ follows.. Namo of undertaklng R•gl8torod offlce Naturo of buslness Class of % Held •hares held Dlr•¢t Indlrgrt IFOW Projects Ltd England and Woles t>omant company Ordlnary 100.00 IFOW Projects Ltd wa8 Incwrated on 23 July 2025 arKI has remalned dormant througtKJuI the period to 31 ALVUSt 2025. 20 Cash genernled from operatlon8 2025 2024 (Defic4t)Jsurpus for the year {37,358) 169,666 Adju31ments for. Depreaation and impaimienl of tsThJlble fflxed assetg 2,650 1,604 Movements in working captsl.. {Increase}Idecrease in debtors IDecrea581lincrease in ¢Jeditor8 (138,5281 (70,1501 69,672 36.675 Cllsh (absorbed tyVg•n¢rat¢d from operatlons (243,386) 277,617 -27-