Lowest paid workers to 'get extra £600' Government says

Ten million working people across the country will benefit from an overhaul of workers’ rights as the Government’s landmark Employment Rights Bill returns to Parliament today. The Bill is expected to benefit people in some of the most deprived areas of the country by saving them up to £600 in lost income from the hidden costs of insecure work, the Government says.

Around 2.4 million people in the UK work irregular patterns like zero or low-hours contracts or agency jobs, where insecure hours can mean forking out on expensive childcare or transport to cover last-minute shifts - or losing out altogether if work is changed or cancelled at short notice.

New protections like guaranteed hours and giving reasonable notice or compensation for lost work are designed to help shift workers keep up to £600 a year.

Deputy Prime Minister Angela Rayner said: "Successful firms already know that strong employee rights mean strong growth opportunities. This landmark legislation will extend the employment protections given by the best British companies to millions more workers."

Speaking in the House today, Business Secretary Jonathan Reynolds will say: "This legislation will deliver a new deal for working people. It will help fix our broken labour market. And it will tackle the poor pay, poor working conditions and poor job security that have been holding our economy back."

The Plan to Make Work Pay will also bring 1.5 million workers into scope of the right to unpaid parental leave; allow payments to workers for short notice shift cancellation or curtailment as high as £120 million per year and create a right to bereavement leave following the death of a loved one.

The waiting period for Statutory Sick Pay (SSP) will be removed as well as the Lower Earnings Limit. These changes will ensure SSP is available to employees from day one of their sickness absence and is available to all employees, regardless of their earnings.

Work and Pensions Secretary Liz Kendall MP said: "Millions of employees across the UK who can’t immediately get sick pay if they are too unwell to work deserve better. People should not have to choose between earning a living at work or getting better at home – the changes we want to see will allow employees to do both and businesses to get on.

"We are now asking for your views on the rate of sick pay for low earners, as we fix our broken labour market and the poor pay and working conditions that have been holding our economy back."