Millions to get a pay rise under plans revealed in the King’s Speech 2024 as part of huge pledge to help workers
A major announcement was made on zero-hour contracts
MILLIONS of workers are set to receive a pay rise under major plans announced by government.
King Charles set out a swathe of Labour’s legislative plans during his speech in Parliament today including a huge shake-up of employment rights.
The reigning monarch said the government is “committed to making work pay” and set on banning “exploitative practices” from companies through its Employment Rights Bill.
The draft law is set to be introduced within 100 days.
Workers are also set for a pay boost to help households tackle the cost of living through a “genuine living wage”.
It comes after the Labour Party pledged in its manifesto to remove “discriminatory” age bands affecting the National Minimum Wage.
This would mean all adults are entitled to the same basic level of pay.
The government has also set out plans to ban zero-hour contracts which allow employers to hire staff without setting a minimum amount of working hours in their contract.
Meanwhile, it pledged to reform the law around “Fire and Rehire” which lets companies sack an employee and rehire them, often on less favourable terms.
Sir Keir Starmer‘s party has also laid out plans to make parental leave, sick pay and protection from unfair dismissal available from a worker’s first day of employment.
The government said it will remove the lower earnings limit for Statutory Sick Pay – currently £123 a week.
Under the draft proposals, employers will also have to make flexible working available from an employee’s first day.
Meanwhile, companies and businesses will be banned from dismissing women who have had a baby for six months after their return to work, except in specific circumstances.
However, the government also said it will remove restrictions on trade union activity which could mean a minimum level of service is not required during strike action.
Such a move could pave the way for more strike action across different sectors including transport and health.
These are the other announcements included as part of the government’s plan to shake up worker’s rights:
- Establishing a new Single Enforcement Body, also known as a Fair Work Agency, to strengthen enforcement of workplace rights.
- Establishing a Fair Pay Agreement in the adult social care sector and, following review, assess how and to what extent such agreements could benefit other sectors.
- Reinstating the School Support Staff Negotiating Body, to establish national terms and conditions, career progression routes, and fair pay rates.
- Simplifying the process of statutory recognition and introduce a regulated route to ensure workers and union members have a reasonable right to access a union within workplaces.
It comes as Sir Keir mapped out a decade of national renewal after the King read out his 35-bill legislative agenda in the House of Lords.
The government has pledged to “take the brakes off Britain” by vowing to rip up planning rules in a house-building and job-creating blitz that will get young people on the property ladder.
Ministers have also said they will pump £7.3billion into the economy as part of a mission to deliver growth.
What is the minimum wage?
HERE'S everything you need to know...
There are two different minimum rates all workers are supposed to get across the UK – the National Minimum Wage and the National Living Wage.
The National Minimum Wage (NMW) is the minimum pay per hour for workers who have left school.
Meanwhile, the National Living Wage is the minimum wage for those aged 21 or over, and is slightly higher.
Both are different from the Real Living Wage – a voluntary minimum that some employers commit to paying, which is £12 or £13.15 in London as of October 2023.
These are the current National Living and National Minimum Wage rates:
- 21 or over (National Living Wage) – £11.44
- 18 to 20 – £8.60
- Under 18 – £6.40
- Apprentice – £6.40
Under the proposed changes by Labour, these age bands will be dropped and all workers will receive the same basic minimum wage.
Meanwhile, the government has pledged to bring rail services back into public ownership through its Passenger Railway Service Bill.
A bill will also be introduced to gradually increase the age at which people can buy cigarettes and impose limits on the sale of vapes.
Legislation will be brought forward to establish a statutory Armed Forces Commissioner while plans have been mooted to set up an independent football regulator.
The government has also pledged to remove the VAT exemption for private school fees and ban no-fault evictions, when landlords evict tenants without having to give a reason.
Plus, the government has announced a huge shake-up to pension schemes in a bid to add over £11,000 extra to a typical pot.
The government also announced that:
- Immigration cops will be given counterterror-style powers to target small boat smuggling gangs.
- Yobs will be targeted in a crime blitz with more community support cops to walk the streets.
- A new Children’s Wellbeing Bill will be put forward to “remove barriers to opportunity” for kids.
We’ve detailed what all the government’s proposed bills will mean for your finances.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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