Workers could claim £600 savings boost under Labour's plan to 'kickstart the economy'

Focusing on improving workers' rights and conditions, the legislation seeks to address issues of poor productivity, insecure work, and broken industrial relations that have long hindered British economic growth.

Based on the Government's Impact Assessment, the bill could have a positive effect on economic growth while raising living standards nationwide.

With its second reading in Parliament today, the bill represents a crucial step towards reforming the UK's labour market and supporting the Government's Mission for Growth.

The legislation targets some of the most deprived areas in the UK. It seeks to address the hidden costs of insecure work, potentially saving affected workers up to £600 in lost income annually.

Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.

Around 2.4 million people in the UK currently work in irregular patterns, such as zero or low-hours contracts and agency jobs.

These workers often face challenges like expensive childcare or transport costs for last-minute shifts, or losing income when work is changed or cancelled at short notice.

The bill introduces new protections for workers, including guaranteed hours and reasonable notice for shifts. These measures aim to provide more stability for those in irregular work patterns.

Employees affected by last-minute shift changes or cancellations will be entitled to compensation for lost work.

This could help workers retain up to £600 annually, particularly benefiting those in the North and Midlands where irregular work is most prevalent.

Hypothetically, a cleaner working night shifts on an average annual wage of £21,058 could save £600. This amount is worth over £250 more per year than the last two national insurance cuts.

The legislation also aims to create a level playing field for businesses, raising standards and preventing the undercutting of good employers. It will make flexible working the default, potentially leading to happier, healthier, and more productive employees.

Deputy Prime Minister Angela Rayner emphasised the bill's significance, stating: "We're delivering real change for working people across the country, while driving our mission for growth and making people better off."

LATEST DEVELOPMENTS:

• Blow to savers as interest rates fall to 'lowest levels in over a year'
• Savers being short-changed almost £1,000 - check if you're missing out
• Major bank offers customers free £3,500 - are you eligible?

She added: "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."

Business Secretary Jonathan Reynolds is expected to address the House later today, saying: "From our very first day in office, this Government has moved to restore security for working people."

He will stress: "Make no mistake - a pro-worker economy is a pro-business economy. This legislation will deliver a new deal for working people. It will help fix our broken labour market."

The bill also introduces a right to bereavement leave, potentially benefiting up to two million people annually.