Latest news with #PlantoMakeWorkPay
Yahoo
01-04-2025
- Business
- Yahoo
Up to 220,000 Scottish workers set for pay rise - what you need to know
Up to 220,000 Scottish workers are set for a pay rise. The new National Minimum Wage and National Living Wage rates come into effect on April 1, 2025. This change is expected to put more money in the pockets of Scotland's lowest-paid workers. Read more: Glasgow sports clubs are set to benefit from a £450,000 investment Eligible full-time workers on the National Living Wage will see a real-terms pay increase of £1,400 per year. This is part of the Plan for Change, which aims to provide families with better financial stability, improve living standards and kickstart growth. Business Secretary Jonathan Reynolds said: "We promised to make low pay a thing of the past. "Now, as part of our Plan to Make Work Pay and the biggest upgrade to workers' rights in a generation, we are delivering that. 'Low pay is not only bad for workers, it prevents them from spending on our high streets and allowing local businesses to achieve their full potential. 'By ensuring that everyone gets a fair wage for the hours they work, we're delivering the financial stability needed to kick-start economic growth and ensure our country is fit for the future.' Employment Rights Minister Justin Madders added: "Hard work deserves to be rewarded and this Government's Plan to Make Work Pay is making that a reality. 'We're raising the floor for workers from Hawick to the Highlands, putting more money into their pockets and delivering the increased living standards needed to kickstart economic growth across Scotland.' The new rates from April 1, 2025, are as follows: the National Living Wage (21+) has increased by 6.7 per cent, from £11.44 to £12.21 per hour; the National Minimum Wage (18-20) has a record increase of 16.2 per cent, from £8.60 to £10 per hour; the National Minimum Wage (under 18) has increased by 18 per cent, to £7.55 per hour; and the Apprentice Rate has the largest increase of 18 per cent, from £6.40 to £7.55 per hour. The Accommodation Offset is now £10.66 per day. Read more: More acts have been announced for Glasgow's 850th anniversary showcase Scottish Secretary Ian Murray said: "This well-deserved pay rise for up to 220,000 Scots is a landmark moment in the UK Government's Plan for Change. "It will boost economic growth and put more money in people's pockets - we will always ensure that working people benefit. "We are taking comprehensive action to deliver the biggest improvements to workers' rights in a generation, where jobs will not only be better paid, but more secure and with employees having stronger rights. "We will continue to do whatever is necessary to help more people into work - while always supporting those who cannot - as we secure Britain's future and a decade of renewal for households the length and breadth of Scotland." The Employment Rights Bill, a key pillar in the Plan to Make Work Pay, will release an additional £600 a year to some of the lowest-paid workers.
Telegraph
06-03-2025
- Business
- Telegraph
Taxpayers will foot bill for employment disputes under Rayner's workers' rights plan
Ms Rayner has already been accused of imposing additional costs of £5 billion a year on Britain's businesses with her expansive workers' rights plans, which will also make it easier for employees to strike. The plans reduce the proportion of workers who must be a member of a trade union in order to run a strike, and the proportion of unionised workers who must vote in favour of industrial action. The latest amendments were tabled by the Government on Wednesday, and had not previously been announced by ministers – effectively smuggling them into legislation under consideration by MPs. One amendment will give workers the right to claim 'civil legal aid' to fight employment disputes. Currently, the government will only support some claims of discrimination and HMRC can take action over failure to pay the minimum wage. The bill would also give the Government the power to take on employers directly, even if the workers affected by the dispute have decided not to take legal action. Ministers would then claw back the cost of legal support, including representation at a tribunal, from compensation paid by bosses to their workers. New rules 'really scary' for businesses Craig Beaumont, executive director at the Federation of Small Businesses, said the new rules were 'really scary' for businesses and could lead to an increase in vexatious claims that can take two years to fight. 'This makes the funnel bigger for new cases, by allowing the government to take out or continue legal action against employers or give legal aid to claimants,' he said. 'It's really scary for small businesses. The idea is that a vexatious claim could come their way and they could wait two years from that point before it is cleared.' Mr Beaumont said some business owners would feel under pressure to settle claims to avoid years of uncertainty and legal bills. 'If you don't, you might have spent £30,000 on legal fees, which is money that you can't spend employing someone,' he said. Any action against employers would be brought by the government's new Fair Work Agency, and is designed to help employees who cannot afford lawyers or are concerned about recriminations from their bosses for suing the company. The plans come after His Majesty's Courts and Tribunal Service revealed in October the number of outstanding tribunals stood at 44,000 in England and Wales. The number of new cases increased by 18 per cent in the previous year, while the number of cleared cases was down four per cent. Business leaders have spoken out against the workers' rights plans, which previously included employees' 'right to switch off' and avoid contact with bosses when not working. The plans were dropped when the bill was presented to Parliament last year. A Government spokesman said: 'Our Plan to Make Work Pay is a core part of our mission to grow the economy, raise living standards across the country and create opportunities for all. 'This pro-business, pro-worker Government continues to engage extensively with businesses and unions, including on the set up of the Fair Work Agency.'
Yahoo
20-02-2025
- Business
- Yahoo
Small firms to cut jobs amid cost woes and new worker rights, finds poll
A third of small businesses are planning to axe jobs amid worries over soaring staff costs, while new employment rights are also set to see firms rein in hiring and trim their workforces, according to new figures. A poll of nearly 1,400 firms by the Federation of Small Businesses (FSB) in the final quarter of last year revealed that 33% expect to reduce their workforces, up from 17% in the previous three months. A separate survey of 1,270 small companies also found that over two thirds – 67% – would curb hiring in the face of the incoming Employment Rights Bill, with nearly a third – 32% – planning to reduce the number of employees they have before the new measures come into effect. It found that three quarters – 75% – of small employers flagged worries over new laws relating to unfair dismissal changes, while 74% raised worries about changes to sick pay. Tina McKenzie, FSB's policy chair, said: 'The figures speak for themselves – plans to allow employees to sue their employers on their first day on the job will wreak havoc on our already fragile economy, while changes to Statutory Sick Pay will make employers think twice about their hiring plans.' She added: 'If taking on staff becomes a legal minefield, businesses will simply stop. 'That means more people on benefits, a ballooning welfare bill, and a devastating hit to living standards.' The Employment Rights Bill also comes as firms face pressures from soaring labour costs, with the Government increasing national insurance contributions for employers from April, alongside another minimum wage hike. The FSB found that more than half – 51% – of small firms surveyed at the end of last year believe that labour costs are one of the biggest barriers to growing their business. A spokesman for the Government said: 'This Government has delivered the biggest upgrade to people's rights at work in a generation and our measures already have strong support from business, as well as overwhelming public support. 'As we deliver our Plan to Make Work Pay, we will ensure all businesses have their say and are given the time to prepare for any changes as we deliver our pro-business, pro-worker agenda.'
