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Labour Party Victory in UK General Election: Implications for the Payroll Industry

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.


Labour leader addressing crowd


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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