U.K.’s Labour Win Sets Stage For Sweeping Changes To Workers’ Rights

Keir Starmer’s Labour Party achieved a major victory in the Thursday’s U.K. general election, ending 14 years of Conservative party rule. The party made many workforce policy promises, but now that they’ve won, how will the proposed policy changes influence the country’s workforce?  

Central to Labour’s campaign were economic policies promising to transform the workforce through significant job creation and major workplace reforms. A particular spotlight has been cast in recent months on the party’s ambitious New Deal for Working People, reportedly positioned to deliver the biggest upgrade to workers’ rights in a generation. 

“Labour’s New Deal will ensure more people stay in work, make work more family friendly and improve living standards, putting more money in working people’s pockets to spend, boosting economic growth, resilience and conditions for innovation,” according to the Labour party. 

Essential to the party’s vision of a workforce overhaul is the Employment Rights Bill, which the party has said it will legislate within the first 100 days of entering the office. It is expected to be a top priority and feature in the King’s Speech on July 17. Bloomberg reports that the policy includes measures to ban “exploitative zero-hour contracts,” in addition to strengthening trade unions and collective bargaining. 

Another early reform is the removal of the waiting period for statutory sick pay and the requirement to earn above the lower earnings limit — making it available to all workers. Also, updates to the national living wage are expected to consider the rising cost of living and potentially abolish the 18-20 age band. These changes could be effective by April 2025 if the legislation is promptly passed.  

It’s also reported by experts that Labour intends to enact the recently ratified Tips Act, which would ensure that workers receive 100% of their tips. 

The New York Times reports that a national wealth fund will be created to invest billions in green energy, homes, gigafactories for electric vehicle batteries, and in reviving the country’s steel industry. 

Labour’s planned approach also includes setting strict fiscal rules to lower debt levels, which will likely limit major changes to taxes and spending. 

Labour’s victory came amidst historically low voter turnout, with participation estimated at 60%. This low engagement signifies underlying workforce challenges for the new administration, as they must restore public confidence and address the fragmentation reflected in the election results. 

The Labour Party has outlined comprehensive policies focused on job creation, economic revitalization, and workplace reforms designed to alter the U.K.’s workforce. However, significant economic challenges and political disillusionment present hurdles that the new government must navigate to implement its vision effectively.