LABOUR’S workers’ rights overhaul could cost businesses £5 billion a year, ministers have admitted.
The changes – including flexible working, paternity and sick leave from day one – could force up prices for consumers and lead to job cuts.
The warning comes in the so-called ‘impact assessment’ for the Employments Rights Bill – which was debated and voted on by MPs last night.
It is the first time the government has produced any estimated costs for the controversial measures.
The plans also include measures to ban exploitative zero-hours contracts and “unscrupulous” fire and rehire practices.
But an impact assessment published by the government has warned that the policies will “impose a direct cost on business of low billion pounds per year (i.e., less than £5 billion annually)”.
Total wage costs in the UK were £1.3 trillion in 2023 in nominal terms.
It also cites official surveys suggesting that 40 per …