Recruiting by word of mouth is, by its very nature, discriminatory and, although it may not be impossible to end it completely, a government committed to equality of opportunity should legislate to limit its pernicious effects on social and economic mobility.
Whether you are a Cameron obtaining preferment through contacts made at Eton and Oxford or a white male who wangles a job in logistics, courtesy of family connections smiled on by management and trades unions, you are obtaining an unfair advantage in the labour market.
A Secretary of State for Work and Pensions committed to opening up the labour market to all those looking for work cannot ignore a significant barrier to full participation in that market. What you know should trump whom you know. I gather it used to be the case in Germany that all vacancies had to be notified to the German equivalent of our Jobcentre network. Is there any reason why that should not happen in the United Kingdom?