With contribution from Emily Bailey and Izzy James
Prime Minister Rishi Sunak has unveiled the Conservative Party’s manifesto ahead of the general election taking place on 4 July 2024. Whilst the Conservative Party manifesto does not contain changes to employment laws which are as significant as those proposed by the Labour Party, it includes a number of policies which will impact rights and obligations in the workplace. Below is a brief summary of these proposals and the implications for employers.
Plan to cut taxes for workers
Proposal
The Conservative Party proposes to reduce National Insurance by 2p meaning a reduction in tax payments for employees and workers. The Conservative Party further pledges to cut employee national insurance to 6% by April 2027, meaning that the rate will have halved from 12% at the beginning of 2024 and the average worker earning £35,000 a year will see a tax cut of £1,350 by April 2027. The Conservative Party’s manifesto also pledges that they will not raise the current rate of VAT or income tax. Their proposal goes further as they pledge to abolish the main rate of National Insurance for individuals who are self-employed by the end of the next Parliament.
Implication
Employers, and their payroll providers, will need to update their payroll systems to reflect any tax changes.
National Living Wage
Proposal
The Conservative Party has proposed that they will maintain the National Living Wage (currently £11.44 per hour) in each year of the next Parliament at two-thirds of median earnings. Current forecasts predict this will allow the National Living Wage to rise to £13 an hour.
Implication
Employers who pay their workers National Living Wage must ensure that they keep up to date with any increases and adjust pay accordingly.
Equality Act 2010 “sex” definition
Proposal
The Conservative Party also propose to introduce primary legislation to clarify that the protected characteristic of sex in the Equality Act 2010 means biological sex. The aim of this proposal is to guarantee that single sex spaces, such as in healthcare or sport, can be provided to help offer protections for individuals, particularly in “female-only” spaces.
Implication
Employers should ensure their single sex spaces and services comply with any possible change in law and update any relevant policies accordingly.
Giving working parents 30 hours of free childcare a week
Proposal
From September 2024, the Conservative Party proposes that eligible parents of children between 9 months and 2 years old will be able to access 15 hours of free childcare a week. From September 2025, eligible parents with children between 9 months and 2 years old will be able to access 30 hours of free childcare a week. Once the roll out is complete, this will result in the average family saving around £6,900 per year in childcare fees. The proposal also goes further to pledge that by September 2026, the Conservative Party will invest £300 million into the childcare sector so that all parents can access wraparound childcare before and after school.
Implication
This proposal will be a welcome policy for working parents. Employers should ensure that their employees are aware of the support on offer.
Overhauling the fit-note process
Proposal
Under the Conservative Party’s “plan to get more people into work”, it has pledged to overhaul the current system of fit notes by designing a new system which moves the responsibility of issuing fit notes away from GPs and towards specialist work and health professionals.
Implication
Employers and HR professionals should consider how this proposal may affect their employees who are on sickness absence. This may include considering any plans for a phased return to work for employees who are affected by these reforms.
Minimum Service Level Legislation
Proposal
The Conservative Party manifesto confirms that they will continue to implement the Strikes (Minimum Service Levels) Act 2023 in order to limit the impact of industrial action on public services and balance the ability of workers to strike with the rights of the public.
Implication
Employers in affected sectors should ensure that they remain updated on the implementation of this legislation and understand the procedure for issuing a work notice specifying the workforce reasonably necessary to meet minimum service level during a strike period.
Mandatory National Service
Proposal
As part of their “plan to give young people the opportunities and skills they need”, the Conservative Party has also proposed the reintroduction of National Service. National Service will be made mandatory for all 18-year-olds and will involve young people being given the choice between two options. The first being a volunteering role in the civic service, such as an NHS Responder or RNLI volunteer, for the time equivalent of one weekend per month (25 days a year). The second option will be military service, which involves a year long paid placement with the armed forces or cyber defence.
Implication
Employers with younger staff who may be affected by the introduction of mandatory National Service should consider that there may be a reduction in their workforce. Employers may want to think about how they can accommodate time off to complete National Service and how they can support young employees in fulfilling these obligations.
Lifelong learning entitlement
Proposal
The Conservative party proposes to provide adults with the support to train, retrain and upskill flexibly throughout their working lives. Adults will be eligible to apply for loans to cover new qualifications.
Implication
Employers would need to ensure that they are aware of the potential loans for employees to upskill.
Apprenticeships
Proposal
Another proposal in the manifesto is to fund 100,000 high quality apprenticeships for young people by curbing the number of poor-quality university degrees that are leaving young people worse off.
Implication
Employers should be aware of any additional funding if they offer, or are considering offering, apprenticeship opportunities to young people.
Conclusion
While the Conservative manifesto contains minimal changes to employment law, there are also existing areas of draft legislation put in place by the current government which they would continue to ensure came into force if they win the election in July.
