Political Monitor UK | December 22nd Edition

APSCo News

• Register for our events next year, to make sure you input into our consultation responses.
  
  
• Economic data out in December shows an economy depressed by the Budget leadup, unemployment up and youth unemployment at a startling 14%. However, APSCo’s recruitment trends report for November produced with Bullhorn shows resilience and growth across the contracting market. Read more on our research, the Employment Rights Act and our update on the new youth apprenticeships on our website.

Parliament & Legislation

Employment Rights Bill:

• The Bill has completed its passage through Parliament, clearing the House of Lords on 16 December.
  
  
• Last week, while the Lords accepted four of the Government’s other positions, they declined to endorse the proposed compromise on unfair dismissal and rejected the removal of the cap on compensation. They put in its place a requirement for the Government to conduct a review of the cap.
  
  
• However, following this challenge, the abolition of the cap was ultimately agreed in the Lords on 16 December, signifying the passing of the bill.
  
  
• The Bill received Royal Assent on Thursday 18 December 2025, at which point it became the Employment Rights Act 2025.
  
  
• Whilst a limited set of trade union measures will take effect shortly after Royal Assent, most measures are to be phased in across 2026 and 2027 rather than taking effect immediately.
  
  
• A draft of consultations is scheduled, whilst the Government will work to draft regulations and statutory codes.
  
  
• Prime Minister Sir Keir Starmer said the development marked a “major victory for working people in every part of the country.”
  
  
• Unite Union’s general secretary Sharon Graham argued the bill “had already been watered far too much” and must now be implemented “without any further dilution or delay.”
  
  
• The Conservative Party has said it was “ironic Labour’s job-destroying unemployment bill passed the very same day official figures confirmed unemployment has risen every month this Government has been in office.”
  
  
• Shadow Business Secretary Andrew Griffith said the bill “will pile costs onto small businesses, freeze hiring, and ultimately leave young people and jobseekers paying the price for Labour’s capitulation to their union paymasters.”
  
  
• A think tank linked to Keir Starmer, Labour Together, has urged the scrapping of most of the reforms in the Employment Rights Bill, arguing they stifle economic dynamism, despite Labour’s public support for the legislation. The Times reported that the unpublished paper has been circulated to some Labour MPs.

The Government launched consultations on how measures in the Employment Rights Bill should operate in practice, focusing on protections for pregnant women and new mothers, bereavement leave, and trade union reforms. 

The open consultations are: 

1. Enhanced dismissal protections for pregnant women and new mothers 
   Proposals to make it unlawful to dismiss pregnant employees, those on maternity leave, and mothers for at least six months after returning to work, except in specific circumstances. Deadline: 11.59 on 15 January 2026.
   
   
2. Bereavement leave, including pregnancy loss
   Introducing a new day-one right to unpaid bereavement leave for employees who experience the loss of a loved one, including pregnancy loss before 24 weeks. Deadline: 11.59 on 15 January 2026.
   
   
3. Fair pay agreement process in adult social care
   The Department of Health and Social Care (DHSC) is seeking the views of individuals and organisations about fair pay agreements. This consultation aims to gather views from the sector on how to establish the best way to collectively agree a fair pay agreement. Deadline: 11.59 on 16 January 2026.
   
   
4. Draft code of practice on electronic and workplace balloting for statutory union ballots
   The government will introduce a new statutory code of practice on electronic and workplace balloting to accompany the introduction of these methods for statutory union ballots. This new code will provide practical information on the conduct of these ballots. Deadline: 11.59 on 28 January 2026.
   

Further consultations will follow in line with the Implementation Roadmap to ensure continued engagement with stakeholders on the Employment Rights Bill and the Plan to Make Work Pay. 

Earned Settlement Consultation - Immigration Rights:

• The Government is consulting on how the current immigration permanent settlement system should be reformed and how those reforms should be implemented. This follows reforms which mean that settlement will no longer be granted automatically after a fixed period, but instead earnt through sustained good conduct, contribution and integration. Deadline: 11:59pm on 12 February 2026.

Young People and Work Report - Call for Evidence:

• The Government is seeking input from employers, educators, and stakeholders for its upcoming report on youth employment, aiming to shape policies that tackle barriers to work and improve training pathways. Deadline: 11:59pm on 30 January 2026.

Political Update