As the dust settles after a hard-fought UK general election, the Labour Party emerges victorious, signalling a significant shift in the country's political landscape. With promises of change and reform, professionals across various sectors, including the payroll industry, are eager to understand what lies ahead based on the Labour Party's manifesto pledges.
Payroll Industry Under the New Government
The Labour Party manifesto had a number of key pledges that will have an impact on employment and payroll. These are summarised below:
Supporting People into work
Bring together Jobcentre Plus and the National Careers Service to provide a national service focused on getting people into work and helping them to get on at work
Making work pay
Implementing in full 'Labour's Plan to Make Work Pay: Delivering a New Deal for Working People'
Banning exploitative zero hours contracts
ending fire and rehire
introduce basic rights from day one to:
parental leave
sick pay
protection from unfair dismissal
Single enforcement body for employment rights
Making the minimum wage a 'genuine living wage'
Change remit of the Low Pay Commission to take into account cost of living
Remove the age bandings
Modernising HMRC
Changes to the law to tackle tax avoidance
increase registration and reporting requirements
strengthen HMRC's powers
Invest in new technology and capacity
Tax & National Insurance
Committed to not raising income tax or national insurance rates
Pensions
Retain the triple lock for state pension
Reform of workplace pensions
Review to consider steps needed to improve security in retirement
Looking Ahead: Challenges and Opportunities
While the prospect of policy reforms and technological advancements presents exciting possibilities for the payroll industry, professionals must also prepare for potential challenges. Adapting to regulatory changes, integrating new software solutions, and managing evolving employee expectations will require strategic planning and continuous learning .
As the political landscape transforms, payroll professionals are poised to play a pivotal role in driving organisational success and fostering employee well-being. By staying informed, proactive, and adaptable, industry professionals can navigate the changes brought about by the Labour Party's victory and emerge stronger than ever.
For the latest updates on the intersection of politics and the payroll industry , stay tuned for our future blog posts.
Join us at our next event for more insights
Our next event will be on Thursday 5 September during National Payroll Week. Join us for insights, networking and more as we navigate our way through working with a new government.
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